Court Gives Bandag and Bridgestone/Firestone Green Light

Tire retreading materials manufacturer Bandag Inc. has announced that the U.S. District Court for the Southern District of Iowa has denied a preliminary injunction motion against Bandag, which had been filed by Michelin North America Inc. The motion would have prevented Bandag and Bridgestone/Firestone Inc. from working together to provide business incentives to commercial truck tire dealers to sell

Tire retreading materials manufacturer Bandag Inc. has announced that the U.S. District Court for the Southern District of Iowa has denied a preliminary injunction motion against Bandag, which had been filed by Michelin North America Inc.

The motion would have prevented Bandag and Bridgestone/Firestone Inc. from working together to provide business incentives to commercial truck tire dealers to sell Bandag retreads or Bridgestone/Firestone truck tires.

The court said that Michelin had not adequately demonstrated a threat of irreparable harm to support a preliminary injunction. Also, the court concluded that it was likely Bandag and Bridgestone would encounter significant harm if the motion were granted because it would hinder free discussion and lawful cooperation and may detrimentally affect the companies' customers.

“We are pleased with the Court's ruling, which we believe is fair and in the best interests of an open, competitive marketplace that benefits trucking customers,” said Martin Carver, chairman and CEO of Bandag. “This decision means we can continue competing for business and supporting our network of franchised dealers.”

Although the motion for preliminary injunction was denied, the lawsuit between Bandag and Michelin will continue. It is scheduled for trial in January 2002.

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