Buhler Versatile settles $35M breach of contract lawsuit from Australian distributor

A $35-million breach of contract lawsuit against Buhler Versatile Inc. by an Australian tractor distributor has been settled out of court.

PFG Australia Pty Ltd. sued Buhler after it was informed the Winnipeg-based farm machinery manufacturer decided to halt exports outside North America, according to a statement of claim filed in Manitoba's Court of Kings Benchin October.

PFG's lawsuit saidBuhlerVersatile knew the damage it would cause when it decided to halt shipments, according to court documents, and alleged the company was "acting in bad faith in refusing to comply with the terms of the contracts."

On Tuesday, Buhlerannounced PFGwill now be the exclusive distributor of Versatile tractors in Australia and New Zealand.

The lawsuit has been discontinued without costs payable by any party, according to a news release send out by Buhler.

Buhler has been selling tractors to PFG for more than 20 years.

According to its website, PFG,headquartered in a suburb of Melbourne,is the largest privately owned and independent agriculture distributor in the Southern Hemisphere and has more than 40 locations in its Versatile dealer network.

The Australian company says it has made a "significant financial investment" in developing and marketing Buhler Versatile's brand in Australia.