Coatings Fraud Allegations Dismissed
A Massachusetts maker of coatings and spray equipment has withdrawn its claim that a licensee-turned-competitor built the new business on information stolen from the manufacturer.
The case involves a federal-court lawsuit filed in March 2012 by Warren Environmental Inc. and its contractor subsidiary, A&W Maintenance Inc., of Middleboro, MA. Warren Environmental is a longtime manufacturer of coatings, linings and equipment for potable and wastewater systems and other infrastructure.
Warren Environmental's lawsuit, as detailed here at the time, alleged a complex series of corporate machinations and dishonest conduct by Jon Fishback and Utah-based Reddog Technologies (Red Dog).
At the time of the misconduct alleged, Fishback worked for Smart Epoxy Services, a Warren Environmental licensee.
Warren Environmental's suit accused Fishback and Red Dog of theft, conspiracy and fraud, including an allegation that Fishback sneaked into Warren's warehouse to copy coating formulas and dismantle equipment.
Ultimately, the suit alleged, Fishback and Red Dog developed and sold a "copy-cat epoxy and copy-cat epoxy spray system" based on proprietary Warren Environmental information.
The suit by Danny Warren's Warren Environmental Inc. accused the defendants of stealing information. The action against Red Dog was dismissed; defendant Jon Fishback is seeking dismissal of the remaining claim.
According to court records, Warren Environmental's claim against Red Dog was dismissed Dec. 20, 2013. The settlement was confidential.
About Red Dog
Based in Bluffdale, UT, Reddog Technologies bills itself as "a high-performance coatings manufacturer that specializes in 100% solids products with zero VOCs" for the water and wastewater infrastructure market.
"Reddog leads the industry in new technologies in epoxy coating and application," the company says.
The Other Defendant
Fishback remains a defendant in the original case, but now he wants his name cleared as well.
In a Motion for Summary Judgment filed June 5, Fishback says it was "undisputed" among the parties that the epoxy later marketed by Red Dog "was obtained from a third-party supplier, Arnette Limited [of Richmond, MO], which also supplies Warren, and did not derive from Fishback."
"It is further undisputed," the motion says, "that the alterations which Red Dog made to its commercially-purchased spray rig were not copied from Warren and were fundamentally different than the setup of Warren's spray rigs."
A new court motion calls it "undisputed" that neither the epoxy coatings nor the spray rigs marketed by Red Dog were copied from Warren Environmental Inc.
The motion says Fishback's attorney has tried unsuccessfully and in good faith to resolve the remaining issues with Warren's attorney.
Warren Environmental has declined several requests for comment in recent months.
But in an email Thursday (July 3), co-owner Jane Warren wrote of the case: "It has been dismissed with certain agreements between the parties. Mr Fishbacks case will go into mediatiation, not being dismissed."
Separately, she wrote: "Re Mr. Fishback,the goal is to negotiate a permanent injunction that becomes a federal court order"
Meanwhile, Red Dog and Warren Environmental are now in discussions "to explore the potential for a joint business venture," according to Red Dog's formulator, Scott Peterson.