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 PITTSBURGH, Nov. 2 /PRNewswire/ -- Kipin Industries, Inc., of Aliquippa, Pa., has won a $2.57 million federal court verdict against American Cyanamid (NYSE: ACY) of Wayne, N.J. A three-week jury trial before Chief Judge Gustave Diamond in the U.S. District Court of Western Pennsylvania concluded Monday.
 Kipin attorneys Marvin A. Fein and Margaret F. Houston of the Pittsburgh law firm of Houston Harbaugh said that the jury agreed with their arguments that American Cyanamid was guilty of fraudulent inducement to enter a contract and breach of contract. The case was filed in 1986.
 According to Fein and Houston, American Cyanamid had been under an administrative consent order from the New Jersey Department of Environmental Protection since 1973 to clean up several industrial lagoons in Bound Brook, N.J. Kipin Industries was hired to handle the effort in 1984. Kipin had developed a process to combine industrial waste, usually sludge, with coal to use as a fuel in industrial plants.
 Fein and Houston said that American Cyanamid did not inform Kipin Industries that a high concentration of industrial acids and oils were in the lagoons. In carrying out its secret process, Kipin Industries determined that the resulting product was highly acidic and non-saleable for its uses. Kipin requested that it be allowed to use an industrial washing process to reduce the acidity so that the resulting product could be sold. American Cyanamid refused, because, according to Peter Kipin, president and founder of Kipin Industries, the company did not want to have to seek approval of that process from the New Jersey Department of Environmental Protection.
 Fein and Houston contended that American Cyanamid had reneged on its obligation of good faith and fair-dealing under its contract with Kipin Industries. They expect American Cyanamid to appeal the decision. "The jury," added Fein and Houston, "recognized that Pete Kipin had a process for cleaning out the lagoons and that he acted in good faith to improve the environment."
 -0- 11/2/93
 /CONTACT: David Kosick of The St. George Group, 412-471-1090, for Houston Harbaugh/

CO: Kipin Industries, Inc.; American Cyanamid; Houston Harbaugh ST: Pennsylvania, New Jersey IN: CHM SU:

DM-KE -- PG006 -- 9569 11/02/93 10:19 EST
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Publication:PR Newswire
Date:Nov 2, 1993
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