PET rigid packaging technology specialist SIPA is glad to announce that a legal action against it and a previous development partner in PET preform production technology has ended in SIPA favor. The court action had been taken by Husky Injection Molding Systems (“Husky”) against Athena Automation (“Athena”) 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.