AK Rifles banner

1 - 15 of 15 Posts

·
Registered
Joined
·
2,365 Posts
Discussion Starter #1
Vt. arms dealer sues over Romanian semiauto weapons  : Times Argus Online

At a time when talk of gun control has led to a run on weapons and ammunition sales at gun shops around the country, a Vermont company that’s the largest importer and wholesaler of surplus weapons in North America, is engaged in a legal battle with a Colorado company for allegedly siphoning off as much as $4 million in profits.

Century International Arms of Georgia alleges in its federal lawsuit that M+M Inc. of Eastlake, Colo., solicited business from C.N. Romarm S.A., the Romanian government-owned weapons company, in violation of what the company says is tantamount to an exclusivity contract to import and sell certain Romarm weapons in the U.S.

On Tuesday, eight months after the lawsuit was filed in U.S. District Court in Vermont, M+M Inc. filed a response denying all of Century International’s allegations while seeking dismissal of the case.

Century International Arms (Century International Arms), which operates a manufacturing and distribution center in the Arrowhead Industrial Park in Georgia, imports a variety of surplus weapons, including the popular Romanian WASR-10 semiautomatic rifle.

Century takes the imported weapons and makes modifications at its Georgia facility to meet U.S. gun laws. The modified firearms are then sold to gun dealers as the GP/WASR 10/63 KR.

Century’s corporate address is in Delray Beach, Fla.

“As a result of M+M’s interference with its contracts with Romarm/FAC, Century has been unable to fill its customers’ orders, harming Century’s reputation and crippling its ability to meet demand,” according to the company’s June 2012 lawsuit.

FAC (S.C. Fabrica De Arme Cugir) is Romarm’s manufacturing subsidiary.

Century and Romarm have been doing business for 10 years. The latest contract dated March 2011 requires Romarm to sell a specified number of weapons each month.

“In exchange, Century agreed to pay Romarm, on average, a minimum of $1.35 million per quarter and a minimum of $350,000 a month,” the eight-page lawsuit stated.

But Century said while it has lived up to its part of the agreement, “Romarm/FAC has failed to deliver the required quantity of firearms to century under the 2011 contract.”

In addition to the contract, Century points out that the companies also signed a Business Promotion and Protection Agreement. The companies agreed to “be loyal to each other” and to work jointly “to promote the sales of Romanian firearms and accessories in the United States.”

Century is barred from filing suit against Romarm because the contracts are subject to arbitration.

The lawsuit points out that the agreements require both Century and Romarm “to participate in arbitration in Paris under international rules.”

Century alleges that its inability to meet demand is based in part on Romarm selling surplus weapons to M+M Inc (www.cogunsales.com). At the time the lawsuit was filed, Romarm had already supplied M+M with 12,405 firearms and accessories in the previous 18 months and agreed to supply the Colorado wholesaler with “an additional 24,000 firearms and accessories from August through February 2013.”

Century argues that it is entitled to all weapons and accessories sold to M+M.

“M+M’s usurping of those firearms and accessories has deprived Century of millions of dollars in revenue and close to $2 million on profit in the last twelve monthsm,” the lawsuit said. “If M+M receives shipment of the remaining 24,000 firearms and accessories through February 2013, Century’s lost profits will more than double.”

In a letter dated Sept. 2, 2011, Century notified M+M of its exclusive contract with Romarm. M+M replied in a letter five days later that it would take Century’s letter “into consideration.”

Century’s lawsuit alleges that since at least May 2011, M+M has taken action to “disrupt Century’s relationship with Romarm and advising Romarm to violate its agreements with Century.”

The lawsuit further alleges that two foreign companies, InterOrdinance Austria and CIT Bahamas are helping M+M in its dealings with Romarm.

In its eight-page response filed with the court, M+M alleged that whatever damages Century incurred were “caused by the acts or omissions of third parties (Romarm)” beyond its control. The Colorado arms wholesaler also argued that the contracts in question expired prior to M+M doing business with Romarm. In addition, M+M alleged that the exclusivity provision violate “the laws of Romania and the European Union.”

Century is asking the court to award damages of at least $4 million, plus punitive damages and attorney’s fees.

M+M is represented by Pamela Moreau of the Burlington law firm of Murphy Sullivan Kronk and John Zakhem of Denver, Colo.

Century International Arms is represented by Andrew Manitsky of Gravel & Shea in Burlington.

Attorneys representing Century and M+M declined to comment for this story.
 

·
Registered
Joined
·
2,365 Posts
Discussion Starter #5
I am not sure if this is old news or not but I have not come across it until last week doing a Google search on the WASR KR. I knew something seemed weird about some things I have noticed but I can't quite put my finger on what I am saying or what exactly it pertains to. I do know I saw a PSL in a .308 being promoted a few years ago on a "shot show" type video snip. It had a proprietary magazine and the same short sight radius with the same gas block FSB combo as the M10. I want to say it was IO that was presenting the rifle or Cugir "or subsidiary," its all just Cugir IMHO... The rifle never materialized for sale, this is recently not the old .308 PSL type...

So we have people scratching there heads as to why WASR's are holding there higher price with the PAP's around. Then you have the corrosive x54r Century pumped out from Romania "Cugir." And now I guess the rest of the M10's are being sold as they are now available. Century desperately needs Cugir WASR's, I have known this before I found this story. We have also seen a push in new Polish and Serbian AK's in the last year or so imported by Century. Is all this related somehow? I don't know but some of it is for sure. As I have said during the corrosive x54r debacle, Century needs Cugir and can't afford to loose them. But Cugir seems to be able to say "pound sand Century" as others offer fresh greenbacks "probably paying more per unit."

Romania is full of a bunch of opportunistic and corrupt businesses. I would imagine the gun business is owned and run by the mafia and the worst of all. I also remember reading Century was paying Cugir something like the equivalent of $10 per unit at one time. I have no way of backing that up but they should have known Cugir can do as they please, especially in the big money firearms market of the US. Contract, hah what contract...
 

·
Registered
Joined
·
2,365 Posts
Discussion Starter #6
I concur. They're a bunch of assholes.
I agree. I will have to give some appreciation to the cheap AK's I bought of theirs that gave me a lot of good fun. Otherwise if another can pump out Cugir rifles for cheap with comparable to better quality "of late" work, I am all for it.
 

·
Premium Member
Joined
·
5,000 Posts
"Harms their reputation" looool. Really what hurts their reputation more some company in co selling a similar but not the same product or peddling ak74's with 5.56 barrels.

Century has brought in some nice stuff through the years but at the end of the day they are their own worst enemy.
 

·
Registered
Joined
·
3,991 Posts
It might possibly explain some of this .22 fiasco where seemingly good imported rifles were demilled, Century taking the kits, and M+M keeping the original receivers.
 

·
Registered
Joined
·
1,688 Posts
Did Century get any of those kits? thought they all went to Centerfire.
Colorado Gun Sales website is gone, saw a brief notice elsewhere that they were "taking the business in another direction".
 

·
Registered
Joined
·
3,991 Posts
Did Century get any of those kits? thought they all went to Centerfire.
Colorado Gun Sales website is gone, saw a brief notice elsewhere that they were "taking the business in another direction".
Oh you are right. My bad.
 

·
Super Moderator
Joined
·
6,893 Posts
Colorado Gun Sales are a bunch of greedy bastards. Look at their pricing on Sig parts.
 

·
Registered
Joined
·
3,991 Posts
I just know them for their not so greedy $55 romanian made .22 receiver with trigger guard, scope rail, and ejector block installed. :twirl:
 

·
Registered
Joined
·
2,365 Posts
Discussion Starter #13
They had some damn good deals on PSL parts for a long time. I got some mint stuff late in the game. They did me straight but were very expensive on most anything else.
 
1 - 15 of 15 Posts
Top