SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported) June 19, 1998
Brunswick Corporation
(Exact Name of Registrant as Specific in Its Charter)
Delaware 1-1043 36-0848180
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
1 N. Field Ct., Lake Forest, Illinois 60045-4811
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code (847) 735-4700
Not applicable
(Former Name or Former Address, if Changed Since Last Report)
Item 5. Other Events
On June 19, 1998, as previously disclosed, a jury awarded
$44 million in damages in a suit brought in December 1995 by
Independent Boatbuilders, Inc., a buying group of boat
manufacturers and twenty-two of its members. The lawsuit,
Concord Boat Corporation, et. al v. Brunswick Corporation, was
filed in the United States District Court for the Eastern
District of Arkansas, and alleged that the Company unlawfully
monopolized, unreasonably restrained trade, and substantially
lessened competition in the market for sterndrive and inboard
marine engines in the United States and Canada. Under the
antitrust laws, that amount will be trebled, and plaintiffs will
be entitled to their attorneys' fees. Any and all amounts paid
by the Company will be deductible for tax purposes.
The Company has already filed motions with the trial court
seeking to set aside the verdict and, in accordance with a
schedule just set by the trial judge, will file additional post-
trial motions, including a request for a new trial, and in
opposition to plaintiffs' recently filed requests for equitable
relief. If unsuccessful at the trial court level, the Company
will appeal the entry of any adverse judgment or order for
equitable relief. While there can be no assurances, it believes
any adverse judgment or order will ultimately be reversed.
No trial date has yet been set on two related claims
asserted by the same plaintiffs. In connection with these two
claims, which allege attempted monopolization of the outboard
engine and sterndrive boat markets, plaintiffs seek equitable
relief but no money damages. The equitable relief sought
relating to these claims is similar to that just asserted in
connection with the counts already tried and includes requests
for divestiture of the Company's principal boat manufacturing
operations and orders precluding the Company from implementing
various marketing and pricing programs as well as from acquiring
certain other marine related companies or assets.
The Company believes that an order of divestiture is highly
unlikely both because of its defenses to plaintiffs' claims and
to the availability of less restrictive equitable remedies should
a court conclude that equitable relief is appropriate in
connection with any of plaintiffs' claims.
The Company believes that if an adverse judgment is not
reversed, other boat builders are likely to bring similar suits
and, if successful, the damages ultimately payable by the Company
would be substantial. Sales of sterndrive and inboard marine
engines to IBBI plaintiffs are estimated to represent less than
one-fifth of the total sold during the time period for which
damages were awarded in their suit; however, a variety of factors
affecting both the likelihood and size of any damage award to
various other potential claimants makes it difficult to estimate
the Company's possible exposure.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
BRUNSWICK CORPORATION
DATE: July 17, 1998 By: /s/ Mary D. Allen
Mary D. Allen
Vice President, General
Counsel and Secretary
