Background to the lawsuit - looks good for a judge
Post# of 166
Posted On: 11/30/2015 10:18:14 AM
Background to the lawsuit - looks good for a judgement in favor of LPPI:
Defendant Outdoor Venture Corporation (OVC) appears to have supplied US Military field tents to the General Services Administration for many years. It appears that the US Government now favors hard shell, energy efficient structures over older tent styles for some uses and longer deployment.
Plaintiff’s product, LeepCore, is alleged to have been successfully tested by the US Army to replace cloth field tents. It is made of light steel with foam inside the panels and is hard shelled and energy efficient.
A LeepCore building for 8-20 soldiers can be delivered by helicopter or truck to front line warfare Command positions and assembled in normally 4-6 hours. The buildings can be disassembled and ready to be relocated normally in less than 4-6 hours.
The LEEP structure is adaptable for multiple military and government uses such as command centers and medical stations. The structure can have any combination of business offices, sleeping, washroom and eating areas, all with climate controlled temperatures.
During 2012 the Defendants and LEEP conducted an extensive discussion on a manufacturing joint venture. Defendant, OVC, would manage a 50/50- owned joint venture and be given a license to manufacturer LeepCore panels exclusively for LEEP, Inc. LEEP, Inc. would then sell the finished product.
At that time Defendant signed a Nondisclosure and Non-circumvention Agreement. LEEP, Inc. exposed all of its Patent information and proprietary product information, sales forecasts, customer information and details of their credit relationships, including a secured note for $4,000,000.00 with a money lender in New York. Defendant has an affiliation with another company, Kentucky Highlands Investment Corporation (KHIC), which is a 501C-3 not for profit, operated by a Director of the Defendant.
The Defendant officially terminated all joint venture negotiations with LEEP. Subsequently, KHIC negotiated the purchase of the secured note for $4,000,000.00 from the note holder in New York for approximately $750,000.00 (19%).
Defendants then acted in a manner which harmed the Plaintiff’s everyday business. Defendants, apparently under the assumption that they could now capture the assets of LEEP, Inc., claimed they were foreclosing on the Note and proceeded to seize all of LEEP, Inc’s assets that they could. Allegedly, they paid the Landlord of Plaintiff in Pennsylvania to let them into the factory and they removed manufacturing equipment and finished inventory, including equipment and inventory belonging to third parties. Defendants then moved this equipment and materials across State lines. Defendants then hired away Plaintiff’s employees, which impeded Plaintiff’s ability to complete normal sales orders for LeepCore panels.
Some of the equipment confiscated by Defendants is owned by third parties. The two third party owners of that equipment have filed two separate actions against the Defendant in US Federal Court (Case #6:13-CV-00047-DLB and Case #14 00438 Lycoming County, PA).
In a 3rd law suit on this matter, the insurance company that is defending Defendant has now filed a lawsuit against their own client with a Motion for a Declaratory Judgment to be removed from the case as Defendant’s Counsel (Case #6:13-cv-222-DLB), and also for reimbursement of all legal fees and expenses.
Defendant Outdoor Venture Corporation (OVC) appears to have supplied US Military field tents to the General Services Administration for many years. It appears that the US Government now favors hard shell, energy efficient structures over older tent styles for some uses and longer deployment.
Plaintiff’s product, LeepCore, is alleged to have been successfully tested by the US Army to replace cloth field tents. It is made of light steel with foam inside the panels and is hard shelled and energy efficient.
A LeepCore building for 8-20 soldiers can be delivered by helicopter or truck to front line warfare Command positions and assembled in normally 4-6 hours. The buildings can be disassembled and ready to be relocated normally in less than 4-6 hours.
The LEEP structure is adaptable for multiple military and government uses such as command centers and medical stations. The structure can have any combination of business offices, sleeping, washroom and eating areas, all with climate controlled temperatures.
During 2012 the Defendants and LEEP conducted an extensive discussion on a manufacturing joint venture. Defendant, OVC, would manage a 50/50- owned joint venture and be given a license to manufacturer LeepCore panels exclusively for LEEP, Inc. LEEP, Inc. would then sell the finished product.
At that time Defendant signed a Nondisclosure and Non-circumvention Agreement. LEEP, Inc. exposed all of its Patent information and proprietary product information, sales forecasts, customer information and details of their credit relationships, including a secured note for $4,000,000.00 with a money lender in New York. Defendant has an affiliation with another company, Kentucky Highlands Investment Corporation (KHIC), which is a 501C-3 not for profit, operated by a Director of the Defendant.
The Defendant officially terminated all joint venture negotiations with LEEP. Subsequently, KHIC negotiated the purchase of the secured note for $4,000,000.00 from the note holder in New York for approximately $750,000.00 (19%).
Defendants then acted in a manner which harmed the Plaintiff’s everyday business. Defendants, apparently under the assumption that they could now capture the assets of LEEP, Inc., claimed they were foreclosing on the Note and proceeded to seize all of LEEP, Inc’s assets that they could. Allegedly, they paid the Landlord of Plaintiff in Pennsylvania to let them into the factory and they removed manufacturing equipment and finished inventory, including equipment and inventory belonging to third parties. Defendants then moved this equipment and materials across State lines. Defendants then hired away Plaintiff’s employees, which impeded Plaintiff’s ability to complete normal sales orders for LeepCore panels.
Some of the equipment confiscated by Defendants is owned by third parties. The two third party owners of that equipment have filed two separate actions against the Defendant in US Federal Court (Case #6:13-CV-00047-DLB and Case #14 00438 Lycoming County, PA).
In a 3rd law suit on this matter, the insurance company that is defending Defendant has now filed a lawsuit against their own client with a Motion for a Declaratory Judgment to be removed from the case as Defendant’s Counsel (Case #6:13-cv-222-DLB), and also for reimbursement of all legal fees and expenses.
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A very apposite motto for those who trade successfully in the OTC market..
All posts are my opinion - trade at your own risk.