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UPDATE 11 10 14 3 59 pm ET - adds a copy of the complaint.
DETROIT - Julie Brown, the former CEO of embattled Plastech Engineered Products Inc. is back in court six years after his company was liquidated in bankruptcy.
Brown new business, Plastech Holding Corp. takes action against a company it says disrupted its relations with a Chinese automaker.
Plastech Holding filed a lawsuit in US Detroit District Court on October 21 against WM GreenTech Automotive Corp Virginia case centers on claims that GreenTech intentionally damaged the Plastech relationship with Anhui Jianghuai Automobile Co Ltd more commonly known as JAC Motors.
Plastech alleges GreenTech has reached an agreement to distribute this year's JAC Motors electric cars, despite a prior exclusive contract agreement between JAC and Plastech.
But lawyers argue that GreenTech Plastech refuses to provide the accused or the court a copy of the contract in question JAC Motors, meanwhile, claims the contract does not exist.
Plastech and GreenTech are trading jabs in court documents - all while uncertainty remains whether the U S market is ready for cars made in China.
According to the complaint in October, Plastech Holding has signed a framework agreement in October 2010 to allow Plastech distribute passenger electric vehicles manufactured by JAC dealers the United States Plastech Holding alleges GreenTech and JAC began a partnership in April 2013 to bring Chinese cars to the US Side-exclusive agreement strengthening Plastech - which is valid until October 2015 an automatic renewal clause.
Plastech seeks portfolio still amount to be determined for the damage, but said it could lose 4 million, said Andrew Kochanowski, senior partner at area law firm of Sommers Schwartz PC Detroit and representing Plastech in the case .
Kochanowski said Plastech Holding has spent millions hiring engineering companies and the introduction of U S JAC Motors dealerships Now Kochanowski said the company remains in the lurch without JAC cars to distribute.
Depending on demand October GreenTech knowingly violated the agreement with Plastech JAC on several fronts.
GreenTech hired Marianne McInerney as executive vice president of sales and marketing in March 2012, according to McInerney complaint was COO of Plastech.
McInerney helped raise a significant amount of money and the interest of U of auto dealers and dealer groups for passenger vehicles JAC be distributed by Plastech, the states of complaint.
The complaint alleges McInerney knew the terms of the agreement and would have informed Plastech GreenTech.
Plastech also alleges also met with CEO Charles Wang GreenTech about Plastech acting as intermediary - the distribution of JAC cars GreenTech.
They knew that we had an agreement and interfered with him, Kochanowski said.
GreenTech said he would respect an agreement, if one existed.
A motion filed on 31 October with GreenTech said JAC Motors has confirmed no agreement was reached.
counsel asked GreenTech Plastech provide the contract with JAC Motors in response to a letter on August 7 cease-and-put an end to Plastech attorneys.
Larry Murphy, associated with the representation of Honigman Miller Schwartz and Cohn LLP and GreenTech said Plastech has yet to enter into the agreement in court or produce for his examination.
We asked for the contract and that we got a lawsuit, Murphy said we really want a copy of the contract, so that we can review its merits.
Kochanowski said the agreement contains a confidentiality clause that prevented Plastech to give the contract to GreenTech According to him, the agreement will be concluded in court soon.
Plastech also anticipates arbitration with JAC Motors in Hong Kong on the issue, he said.
The legal battle is in anticipation of a push to sell cars made in China in the U S.
To date, the cars made in China have not been imported to the U S The question surrounding such an undertaking is that cars made in China do not meet the prescribed safety standards U S.
I certainly think that the cars made in China to the US will occur later, it is very likely said Fred Hubacker, CEO of consulting firm Conway Mackenzie Inc. However, the time for that to happen is later, at the earliest, in my opinion a number of quality issues, branding and distribution need to be resolved before we are likely to see a significant amount of Chinese cars built in this country.
The suit also claims that GreenTech is an empty shell and is desperate JAC cars to fulfill its obligations.
The allegations center on the troubled history of GreenTech - which supports Kochanowski said the demand for GreenTech Plastech that does business in a manner that is misleading and raise ethical issues.
GreenTech Automotive was launched in 2009 by fundraiser Democrat Terry McAuliffe Party, now the governor of Virginia, with a plan to build 1 million vehicles per year, it offers more modestly to turn a few thousand low neighborhood vehicles rate per year.
GreenTech opened its assembly plant long delayed in Tunica, Miss south of Memphis, Tennessee on October 22 the day after Plastech filed his suit The company continues to increase investment.
In 2009, the company estimated the plant would cost Mississippi 1 billion and employ 2,500 workers to start the company originally planned the production of several models, with a large part of them are exported to world markets .
Start of production in the next two months would cap a complicated birth for starting.
Since 2009, GreenTech has been dogged by delays and political criticism.
Complicating his story was the McAuliffe plan s and Wang to fund the company through the controversial program immigration EB-5 EB-5, as created by Congress in 1990, provides immigration visas to foreigners who invest at least 500,000 in job creation business in the regions targeted by the federal government for employment growth.
GreenTech made his original fundraising to rich people in China with the promise of a U S visa in return.
The company has also become something of a political target when McAuliffe, who led campaign fundraising for Jimmy Carter, Bill Clinton and Hillary Clinton, successfully ran for governor of Virginia in 2013 The Commission US Securities and Exchange investigation the company simultaneously.
McAuliffe said in the media that it has completed its ties with the car company at the end of 2012.
Plastech alleges GreenTech misled economic incentive agencies about its ability to make cars, saying it is simply importing Chinese cars and the addition of a battery.
GreenTech spent a lot of time to convince state and federal investigators that he would create manufacturing jobs in Mississippi, Kochanowski They said they will not be manufactured in the U S They did not buy kits; they buy fully assembled cars.
Murphy said that these issues fall outside the scope of the complaint and Plastech is salacious in nature and filed a motion to strike allegations of the complaint, he called the complaint ploys Plastech by company to build a negative public perception GreenTech.
Rather than advocate a single complaint based on allegations of interference simple contracts, Plastech chose instead to fulfill its complaint with a multitude of false allegations, impertinent, immaterial and scandalous about GreenTech companies that do not relate the heads of Plastech or repair orders, the motion said.
Dan Sharkey, associated with area law firm Detroit Brooks Wilkins Sharkey Turco PLLC, said the demand for Plastech is common among automotive companies.
In general, allegations of tortious interference are very common in commercial litigation, but I've never seen the plot layers alleged in the complaint, it reads like a novel, said Sharkey.
GreenTech is not alone in her rough go towards the old company profitability Brown, Plastech Engineered Products, suffered a worse fate.
Plastech Engineered Products, the largest supplier of minorities in the US at the time, filed for Chapter 11 bankruptcy protection on Feb 1, 2008, after its largest customer, Chrysler LLC, began to cancel its contracts with the provider.
Chrysler cited the production quality of Plastech as his reason for making the contract in 2007, Chrysler issued 449 tickets Plastech quality for nonconforming material for its injection molded components Chrysler considered this a material breach of the purchase agreement Detroit Business Crain's reported in 2008 Plastech had 35 factories and more than 7700 employees at the time of deposit at the time, was Plastech creditors as much as 560 million.
A dispute with Chrysler on the tracking tool provider and in June, Plastech sought to liquidate assets it sold its external firms, Goldman Sachs Group Inc. and Magna International Inc. units per 24 7 million and its internal activity Johnson Controls Inc. and Goldman Sachs for 199 5000000 Plastech also sold its business with stamping JD Norman Ohio Holdings Inc for 4 to 5 million.
Brown remuneration and that of family members, she hired, also became a hot topic during the Brown procedure was awarded 3 23 million in the 12 months before filing bankruptcy husband Brown, three brothers, two brother sisters, sister, cousin and nephew were also on the payroll of Plastech, for a total of 6 4 million for 2007, Crain's reported.
Plastech blamed Chrysler to take the contract for his disappearance, according to court records.
Since Brown and Plastech remained largely public attention until the new Plastech legal cases arose.
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