Pipe Relining Lawsuits Settle Before Trial

SAN DIEGO -- The Nu Flow Group of Cos. announced in late February the successful resolution of two lawsuits filed in the U.S. District Court for the Central District of California two years ago by competitor Ace DuraFlo. Claims were filed against Nu Flow and other defendants, including Ace DuraFlo’s former franchisee, Bill Howe Plumbing, after Bill Howe terminated its contract with Ace. The cases against Nu Flow, including one which named Bill Howe Plumbing, were consolidated and set for trial on February 19, 2008.

Ace sought to recover almost $11 million in damages against Nu Flow, other defendants, and Bill Howe. An offer to settle was filed earlier by defense counsel, a procedure frequently employed to limit a client’s potential exposure at trial without any admission of liability.

On the eve of trial, the court reaffirmed its prior ruling that Ace failed to show it had any trade secrets or proprietary products, and indicated Ace was unlikely to prevail at trial on any remaining claims against any defendants. Following the court’s comments, Ace accepted defense counsels’ nominal offering of $238,000 rather than risk paying damages of more than $1 million in costs and attorneys’ fees to defendants at trial.

The Nu Flow group of companies offers technologies for the rehabilitation of the inner infrastructure of pipe and water systems. Lining applications range from domestic water piping, HVAC and drain systems, military fire sprinkler systems and conduit, underground utilities and lead service piping.