Sipa confirms end of legal battle with Husky

Italian PET rigid packaging technology specialist Sipa says that a legal action against it and a previous development partner in PET preform production technology has ended in favour of Sipa. The court action had been taken by Canadian injection moulding machine maker Husky Injection Molding Systems against compatriot Athena Automation and Sipa over the alleged misuse of confidential information owned by Husky.

On April 22 2016, the Ontario Superior Court of Justice dismissed a legal action begun by Husky in 2013 against Athena, Sipa and other parties (court file no. CV-14-1048-00CL). In the ruling dismissing Husky’s claim, the court agreed with Sipa’s argument that allegations by Husky concerning the misuse of confidential information were unproven.

Justice F. Newbould said: “In this case, those allegations of what Sipa knew have not been proven and Husky has not argued willful blindness, which is understandable given the lack of any evidence that could support such an argument. In the circumstances, for the law to now tell Sipa that it is liable for proceeding with its agreement with Athena in the face of allegations that Sipa denied from the start does not make sense and would work an injustice. In my view, Husky has not established that it has a claim against Sipa for breach of confidence and the action against SIPA is dismissed.”

Husky initially appealed the ruling, but on July 4, Husky discontinued its appeal. Husky will pay for the costs of the legal action.

Athena was set up by ex-Husky owner Robert Schad. It also ended an agreement with Sipa it had entered into in December 2012 this year. The agreement was to build a line of automated PET injection moulding and blow moulding machines. Sipa was also to make all the preform moulds for Athena machines.

Athena now says it will support Sipa in shipping and servicing the remaining “Athena for Sipa” machine inventory. Athena will also take over the sales of its PET preform moulding machines, alongside its non-PET machines.

Athena currently builds 150, 300, and 450-tonne injection moulding machines. A new 14,400 sq m plant for just-in-time manufacturing of machines only is in the early start-up phase. The existing 3,700 sq m building will remain as head office and will include Sales and Customer Services.