Canon Sues North Carolina Office-Equipment Dealer, Seeks Over $2.2 Million in Damages

courtThe Triangle Business Journal reports that Canon U.S.A. has filed a multi-million-dollar lawsuit against Cavin’s Business Solutions of Fayetteville, North Carolina, alleging that Cavin’s engaged in fraud and breach of contract, and also violated North Carolina’s unfair and deceptive-trade practices law.

Canon filed the lawsuit on September 29th in the federal court representing New York’s Eastern District.

Reportedly, Cavin’s was part of Canon’s Canon Strategic Marketing Plan that allowed Canon authorized dealers to receive rewards for attracting larger customers that acquired Canon’s business equipment, such as high-volume printers and copier/MFPs, for a year or more.

Canon alleges that Cavin’s submitted false documentation to show it had placed equipment with large customers participating in the program, when the equipment had actually been placed with other non-participating customers. Canon alleges the false documentation was designed to allow Cavin’s to receive rewards it had not earned.

Previously in May 2015, Canon says it tried to have Cavin’s submit to an audit that would determine whether Cavin’s had indeed submitted false documents. According to Canon, however, Cavin’s allegedly responded by saying it had improperly obtained CSMP rewards and that it owed $2.2 million for the remainder of the purchase price for business equipment it had acquired from Canon. Canon says however that Cavin’s has failed to pay.

Canon’s lawsuit includes claims of common law fraud, breach of contract, and unfair and deceptive trade practices. It’s seeking $2.2 million in monetary damages, as well as treble damages and attorney’s fees.

More Resources

September 2015: Judge: Canon Doesn’t Have to Supply Consumables, Support to Dealer SymQuest Acquired by Competitor

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