Christy Webber & Co. Landscapes, a Chicago-based landscaping and site work contractor, filed an antitrust lawsuit May 14 against Deere & Co., singling out the equipment maker’s construction and forestry division over what Webber alleges is Deere’s refusal to allow the contractor’s mechanics the right to repair its Deere skid steers, excavators and other Deere construction equipment, without Deere excavators and other construction equipment.
The lawsuit, filed in federal court for the Northern District of Illinois, is a class action, and Webber said in the filing that he was bringing it “on behalf of himself and on behalf of others” he invited to join the litigation.
Deere’s agriculture division settled a similar right-to-repair class action brought by its farmer customers over rights to repair their farm equipment about a month ago for $99 million.
The right-to-repair issue, where equipment and electronics owners assert the right to make their own repairs without having to return to the manufacturer, is most often seen in the agricultural sector, but has been an emerging issue for construction equipment in recent years. While some states have enacted legislation guaranteeing the right to redress for owners of certain types of equipment and devices, Illinois has yet to pass any kind of protection.
A question of who gets to fix the machines
Among other things Webber alleged in the filing, he claimed Deere forces its customers to receive repairs only through its dealer network and forces them to buy and use Deere parts despite the landscape contractor employing its own mechanics and stocking its own surplus parts, including some from aftermarket independent manufacturers.
“Deere’s exploitation of C&F equipment owners began as part of a strategy by Deere to increase profitability by restricting the ability of Deere customers to independently repair equipment those customers purchased from Deere,” the filing says. “Specifically, Deere, which is a leading manufacturer in the C&F market segment, and its network of authorized C&F dealers and technicians, have agreed to stifle competition in the aftermarket for repair services for Deere C&F equipment. Deere abuses its monopoly power in this market to force owners of Deere C&F equipment to use a Deere dealer, and also forces repair owners to purchase these key parts sold. by Deere”.
Deere & Co. responded with this statement: “John Deere has long supported our customers’ ability to maintain and repair their equipment. We remain committed to providing tools, resources and solutions that help customers keep their machines running safely, reliably and efficiently.”
Webber is a privately held company with estimated revenues of up to $76 million and employs more than 400 landscapers, landscape architects, laborers, engineers and mechanics.
In the court filing, he estimates he has bought or leased about 50 pieces of Deere C&F equipment, including wheel loaders (models 304K, 324K and 524L), track loaders (models 326E, 333G and 325G), backhoes (models 30G, 333G and 325G), bulldozers (models 30G, 37G, 37G, skis and skis). (models 324G, 330G and 312GR). Webber specified that each piece of equipment was purchased or leased from West Side Tractor Sales Co., the largest Deere dealer in the Chicagoland area. The complaint also names Deere dealers as “co-conspirators” in what it alleges is a price-gouging scheme. Webber said his team of mechanics would not be able to repair his Deere equipment because Deere does not give access to its fully functional tool, a computer interface system that allows diagnostics and repairs, to anyone but its own dealers.
“When Deere withdraws the fully functional repair tools needed to diagnose, calibrate, reprogram, clear codes, pair parts and return them to service, owners of Deere C&F equipment face the same lockout, delays, overcharges and loss of repair option that has drawn judicial, regulatory and public ire in the agricultural segment,” the filing says. Webber’s complaint also cites the Right to Repair movement that originally spawned the farm equipment class action that Deere & Company settled last month.
A spokesman for Christy Webber & Co. was not immediately available to comment on the lawsuit.
