SLT files suit against C.R. Bard for breach of contract.OAKS, Pa.--(BUSINESS WIRE)--Nov. 22, 1994--Surgical Laser Technologies Inc. (NASDAQ/NMS:SLTI), the Oaks, Pennsylvania-based developer, manufacturer and marketer of lasers and laser delivery systems for use in medical and surgical procedures, announced Tuesday that it has commenced litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. in the United States District Court for the Eastern District of Pennsylvania The United States District Court for the Eastern District of Pennsylvania is one of the original 13 federal judiciary districts created by the Judiciary Act of 1789. It originally sat in Independence Hall in Philadelphia as the United States District Court for the District of against C.R. Bard Inc. of Murray Hill, N.J. and Bard Urological Division of Covington, Ga. The complaint alleges breach of a contract and of the duty to deal fairly and lack of good faith, anticipatory repudiation The unjustifiable denial by a party to a contract of any intention to perform contractual duties, which occurs prior to the time performance is due. This form of breach, also known as anticipatory breach of contract, occurs when one party positively states that he or she of a contract, negligent misrepresentation misrepresentation In law, any false or misleading expression of fact, usually with the intent to deceive or defraud. It most commonly occurs in insurance and real-estate contracts. False advertising may also constitute misrepresentation. and unfair competition. SLT SLT Salut (French) SLT Sri Lanka Telecom SLT Senior Leadership Team SLT Something Like That SLT Selective Laser Trabeculoplasty SLT South Lake Tahoe (California) SLT Single Line Telephone asks for specific performance and for monetary damages. Filed by SLT's outside general counsel, Duane, Morris & Heckscher, the complaint demands up to $62 million for Bard's breaches and actionable conduct against SLT. SLT also asks for an injunction against, and indemnification from, Bard's enforcement against the company with respect to patent rights potentially inuring to Bard. Finally, SLT asks for 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. . However, SLT can provide no assurance as to the nature or amount, if any, of damages that may be awarded to it. SLT contends that by July 1994, Bard and SLT entered an exclusive, long-term Supply, Joint Marketing and License Agreement under which the companies would jointly and cooperatively market SLT's urologic laser delivery systems in the United States and Japan. The Agreement also provided for potential expansion into other countries. As part of the Agreement, Bard was to make a $3.8 million payment to SLT in the form of an equity investment and one-time cash payment. The Agreement required Bard to purchase up to $36.5 million of SLT delivery systems during the first five years of the arrangement. During the first 12 months, Bard was required to purchase a minimum of $700 thousand of SLT laser systems for special marketing and clinical projects in Japan. In addition to jointly marketing SLT's urologic delivery systems, Bard was to promote SLT laser systems as Bard's preferred laser system. As such, the Agreement required that the companies establish joint promotion and marketing programs that promote both lasers and urologic laser delivery systems. SLT and Bard agreed to investigate opportunities for joint research and development projects in the field of urologic laser surgery. The Agreement also required SLT and Medicon, Bard's joint venture with Kobayashi Pharmaceuticals in Japan, to enter an exclusive Distribution Agreement under which Medicon would distribute all of SLT's lasers and laser delivery system products for urology urology Medical specialty dealing with the urinary system and male reproductive organs. It traces its origin to medieval lithologists, itinerant healers who specialized in surgical removal of bladder stones. as well as other surgical specialties in Japan. James R. Appleby Jr., SLT's president and chief executive officer, stated: "For two years, Bard pursued the establishment of a comprehensive business relationship with SLT. We at SLT knew that in June 1991 Bard had entered into an agreement with Trimedyne, a competitor of SLT, to market Trimedyne's Urolase(R) side-firing, free-beam laser delivery system. "Very early in our discussions, SLT asked Bard whether its agreement with Trimedyne hindered Bard from entering a comprehensive relationship with SLT. On numerous occasions during the past two years, Bard represented to SLT that Bard was not limited by its agreement with Trimedyne from entering into a comprehensive relationship with SLT or any other company." Continuing, Appleby stated, "Because of the representations and other commitments made by Bard to SLT during the past two years, SLT forewent fore·went v. Past tense of forego1. alternative strategic opportunities which would have provided significant financial benefit to SLT. "SLT shared with Bard its most confidential information regarding SLT's technologies, engineering documentation, product development plans, manufacturing processes and marketing and pricing strategies and plans. In fact, SLT's product development direction and plans were modified to meet Bard's requirements. "We at SLT were thus shocked when Bard cited potential exposures within its agreement with Trimedyne as well as threatened litigation by Trimedyne as reasons for reneging on its Agreement with SLT." Appleby noted that Bard Urological Division had sought SLT out in order to capitalize on the proprietary technology, cost-effectiveness and clinical versatility of SLT's urologic laser delivery systems as well as the durability and effectiveness of SLT's laser systems. Stated Appleby: "Of great interest to Bard were SLT's `Contact Only' and `CHRP (Common Hardware Reference Platform) A specification that was intended to make the PowerPC a standard platform. Also known as the PowerPC Reference Platform (PPCP), it defined minimum hardware requirements such as ports, sockets, bootstrap ROM and cache. (TM)' procedures. Both procedures are a form of laser treatment for urinary outflow obstruction." CHRP is an acronym for Coagulation coagulation (kōăg'y  lā`shən), the collecting into a mass of minute particles of a solid dispersed throughout a liquid (a sol), usually followed by the precipitation or and Hemostatic hemostatic /he·mo·stat·ic/ (he?mo-stat´ik)1. causing hemostasis, or an agent that so acts. 2. due to or characterized by stasis of the blood. he·mo·stat·ic adj. Resection of the Prostate. SLT is a worldwide leader in the development, manufacture and marketing of surgical lasers and laser delivery systems. SLT's Contact Laser delivery systems, intended for open and endoscopic en·do·scope n. An instrument for examining visually the interior of a bodily canal or a hollow organ such as the colon, bladder, or stomach. en procedures, can be used in virtually all general and specialty surgical procedures. They provide the surgeon with precise and controlled vaporization vaporization, change of a liquid or solid substance to a gas or vapor. There is fundamentally no difference between the terms gas and vapor, but gas is used commonly to describe a substance that appears in the gaseous state under standard conditions of and coagulation of tissue. CONTACT: Surgical Laser Technologies Inc., Oaks Michael R. Stewart, 800/366-4758 |
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