Detroit MI: The Apex Parts Corporation (APC) manufactures parts for all types of commercial vehicles and heavy equipment at locations around the world. APC won a multi-million dollar contract from one of Detroit's big three automakers to design and manufacture various automobile parts over a span of several model years.
APC's auto parts division was given the management responsibility for executing the contract requirements. The division management realized that additional design and manufacturing capability was needed to implement several unique components. Superior Parts Corporation (SPC) was given a subcontract for these items to be completed by their auto parts division.
SPC's auto parts division began to provide the required components, all the completed parts were then delivered by the prime contractor APC to the customer. At this point in time SPC's corporate management decided to sell its auto parts division to Consolidated Parts Corporation (CPC).
CPC raised the price of the components, via a mutually agreed subcontract amendment. CPC auto parts division continued to deliver products for assembly, on schedule, to APC's auto parts division for final delivery of all parts to the customer. At some point APC auto parts division fell behind in part deliveries to the customer, blaming CPC's auto parts division for not delivering components on time.
APC auto parts division sued CPC auto parts division for non-compliance with the terms of their subcontract. CPC auto parts division counter-sued, stating they had delivered the components and could prove it. Lawyers for both sides prepared to go to court for adjudication of the issues. APC's lucrative contract was put on hold by the customer.
Then APC's corporate offices announced that via an outside law firm they had quietly purchased CPC to acquire their military vehicles parts division. In essence APC was suing itself until the law suits could all be dropped!
