Commitments and Contingencies

6 Months Ended

Jun. 30, 2012

Commitments and Contingencies

Commitments and Contingencies

11.          Commitments and Contingencies

In the ordinary course of business, the Company is engaged in various litigation including product liability and intellectual property disputes.

As previously disclosed, Northern Star Industries, Inc. (“Northern Star”) sued the Company’s subsidiary, Douglas Dynamics L.L.C. (“DD LLC”), in the United States District Court for the Eastern District of Wisconsin (the “Court”), alleging that various advertisements that DD LLC had run violated the Lanham Act. Northern Star sought monetary damages and injunctive relief. On February 15, 2012, the Court entered a decision and order granting a preliminary injunction motion in part and denying it in part. On July 31, 2012, the Court approved a settlement between Northern Star and DD LLC pursuant to which the preliminary injunction was dissolved and the Company paid $1,500 to Northern Star.  The Company is in discussions with its insurers and currently believes it is probable that a substantial portion of the settlement amount, as well as certain litigation expenses and attorneys’ fees, will be covered by insurance.

The Company does not believe that any pending litigation will have a material adverse effect on its consolidated financial position.  The Company is not currently a party to any environmental-related claims or legal matters.