Gene Johnson Oct. 16, 2015, 10:59am


A Monroe County company that that makes patented pipe inserts is suing its long-time manufacturing partner for the return, transfer and delivery of its some molds.

Pipeslot Inc. of Kunkletown filed a lawsuit against Midbury Industries Inc. on Sept. 1 in the U.S. District Court for the Middle District of Pennsylvania citing various violations, including fraud, negligent misrepresentation and breach of contract.

According to the complaint, since 1978, Pipeslot delivered its only set of molds to Midbury in Freeport, N.Y. for use in the manufacturing of pipe inserts. In July 2014, Pipeslot sent orders to Midbury for production and alleges Midbury failed to fulfill the orders. Since September 2014, according to the claim, Pipeslot has made a demand for the return, transfer and delivery of its molds for the purpose fulfilling its contractual obligations.

On or about August 2014, Midbury, the lawsuit claims, via electronic transmissions and through the mail presented Pipeslot with a false claim or past amounts owed. Midbury also stated that the molds in question were sent to Penn Plastics Inc., but Penn Plastics reported the molds had been returned back to Midbury, the complaint states.

Pipeslot Inc. is seeking equitable relief of no less than $75,000 to remedy Midbury’s breaches of fiduciary, including upon an accounting with a declaration as and for the ownership and value of its molds. Pipeslot Inc. is represented by Stroudsburg-based attorney Robert A. Saurman.

U.S. District Court for the Middle District of Pennsylvania case number 3:15-cv-01721-ARC

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