Enova Systems, Inc. Enova enters into Mutual Release Agreement (3607P)
01 Outubro 2013 - 3:00AM
UK Regulatory
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RNS Number : 3607P
Enova Systems, Inc.
01 October 2013
Enova enters into Settlement Agreement and Mutual Release with
Arens Controls
On September 24, 2013, Enova Systems, Inc. ("Enova") and Arens
Controls Company, L.L. C. ("Arens") entered into a Settlement
Agreement and Mutual Release (the "Agreement"), pursuant to which
the parties agreed to a mechanism to resolve their dispute with
respect to certain claims made by Arens in connection with its
action captioned Arens Controls Company, L.L.C. v. Enova Systems,
Inc. (the "Lawsuit"), filed in 2008 with the Northern District of
Illinois, Eastern Division of the U.S. District Court for breach of
purchase orders that Enova submitted to Arens in 2007.
As has been previously reported, in the Lawsuit, Arens asserted
eight counts against Enova. On January 5, 2011, Arens and Enova
partially settled six of the eight claims.
The two remaining counts concerned i) anticipatory breach of
contract by Enova for certain purchase orders that resulted in lost
profit to Arens and ii) reimbursement for engineering and capital
equipment costs incurred by Arens exclusively for the fulfillment
of certain purchase orders received from Enova. As was previously
reported, on December 12, 2012, a judgment was entered by the
United States District Court Northern District of Illinois in favor
of Arens Controls Company, L.L.C. in the amount of $2,014,169, as
damages for the cost of manufacturing and test equipment, the cost
of engineering drawings, and lost profits (the "Judgment"). The
Company filed a notice of appeal of the Judgment with the United
States Court of Appeals 7th Circuit on January 15, 2013.
On September 24, 2013, and in order to avoid the risks and costs
associated with the pending appeal, Enova and Arens entered into a
Settlement Agreement and Mutual Release (the "Settlement
Agreement") to resolve the remaining issues between them. Under the
terms of the Settlement Agreement, Enova was required to file, and
filed on September 27, 2013, a motion to dismiss the pending appeal
with prejudice. Arens agreed that, for a period of 120 calendar
days from the date of the Settlement Agreement, Arens shall not
take any action to enforce the Judgment. Thereafter, Arens will be
entitled, without further notice, to enforce the Judgment against
Enova or otherwise exercise all available procedures and remedies
for collection of the full amount of the Judgment; and Enova agrees
that it will not contest the validity of the Judgment. However,
notwithstanding the foregoing, if Enova pays Arens $300,000 at any
time during such 120 day period, then within 3 business days after
Arens receives confirmation of such payment, Arens will file a
satisfaction of judgment stating that the Judgment has been
satisfied. Upon receipt of such $300,000 payment, Arens will
completely release and forever discharge Enova from any and all
claims for damages whatsoever that occurred prior to the date of
the Settlement Agreement. In exchange for Arens's release, Enova
will completely release and forever discharge Arens from any and
all claims for damages whatsoever that occurred prior to the date
of the Settlement Agreement.
This information is provided by RNS
The company news service from the London Stock Exchange
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