AERT Junction, TX Facility Fire Claim Enters Litigation.SPRINGDALE, Ark. -- Advanced Environmental Recycling Technologies Inc. (Nasdaq:AERTA AERTA Army Environmental User Requirements and Technology Assessments (US Army) ), a leader in composite building materials technology, today announced that the Company has been sued by certain underwriters at Lloyd's, London ("Lloyd's") in connection with a pending final settlement of AERT's Junction, Texas fire claim. Lloyd's filed suit January 19, 2005 in the Circuit Court of Washington County, Arkansas Washington County is a county located in the U.S. state of Arkansas. As of 2000, the population was 157,715. The county seat is Fayetteville. Washington County is Arkansas's seventeenth county, formed on October 17, 1828 and named for George Washington, the first President of the seeking a declaratory judgment declaratory judgment In law, a judgment merely declaring a right or establishing the legal status or interpretation of a law or instrument. It is binding but is distinguished from other judgments or court opinions in that it includes no executive element (an order that that they are not liable to reimburse AERT AERT Advanced Environmental Recycling Technologies, Inc AERT Animal Emergency Response Team for certain costs of rebuilding the AERT Junction, Texas facility. Lloyd's alleges that AERT did not rebuild the facility exactly as it had existed prior to the March 2003 fire and that AERT committed fraud in seeking reimbursement for alleged improvements made to the facility. Lloyd's also seeks to retroactively cancel its portion of the insurance policy. The filing was unexpected by AERT because the Company has cooperated fully with the claims underwriting process and negotiations toward a final settlement of the claim were progressing. AERT believes the Lloyd's lawsuit is without merit. The Company filed a counterclaim A claim by a defendant opposing the claim of the plaintiff and seeking some relief from the plaintiff for the defendant. A counterclaim contains assertions that the defendant could have made by starting a lawsuit if the plaintiff had not already begun the action. on January 24, 2005 denying all of Lloyd's allegations and seeking immediate and full reimbursement for rebuilding of the Junction plant. AERT seeks to recover actual damages in the amount of at least $1.8 million plus attorney and court fees and punitive damages Monetary compensation awarded to an injured party that goes beyond that which is necessary to compensate the individual for losses and that is intended to punish the wrongdoer. for acts of bad faith committed by Lloyd's. About AERT: AERT converts reclaimed plastic and wood fiber waste into Weyerhaeuser ChoiceDek(R) outdoor decking systems, MoistureShield(R) door and window components, MoistureShield(R) CornerLoc(TM) exterior trim and fascia fascia (făsh`ēə), fibrous tissue network located between the skin and the underlying structure of muscle and bone. Fascia is composed of two layers, a superficial layer and a deep layer. components and MoistureShield(R) outdoor decking. AERT operates manufacturing facilities in Springdale, Ark.; Lowell, Ark.; Tontitown, Ark.; Junction, Texas; and Alexandria, La. The Company's products are sold across North America. ChoiceDek Premium decking is marketed exclusively through Lowe's Home Improvement Warehouses throughout the United States. |
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