PITTSBURGH — A lawsuit filed against Bio UV SAS, a manufacturer of water treatment equipment, alleges the company did not live up to its obligations after the plaintiff was hit with a complaint over defective equipment made by a company acquired by the plaintiff.
A subsidiary of Evoqua Water Technologies Corp. filed a complaint on Nov. 7, alleging breach of warranty, breach of contract and breach of the implied covenant of good faith and fair dealing.
Neptune-Benson filed the complaint in the Court of Common Pleas Allegheny County against Bio UV, alleging it refused to defend, indemnify or hold Neptune-Benson harmless.
The plaintiff alleges that on Feb. 27, Neptune-Benson LLC received a notice of claim stating a customer had purchased defective Delta UV model EA-4H-5 ultraviolet generators.
On May 21, Neptune-Benson requested Bio UV defend, indemnify and hold it harmless against the claim on the basis of the Stock Purchase Agreement (SPA) under which Neptune-Benson acquired Delta Ultraviolet Corporation from Bio UV on Aug. 3, 2016.
Plaintiff's counsel sent a third request letter on July 27 but the defendant has not responded, the complaint said.
The plaintiff holds Bio UV SAS responsible because the defendant allegedly has a duty to defend, indemnify, and hold Neptune-Benson harmless against any claims asserted against Neptune Benson that arise out of Delta UV's business prior to the closing date of the SPA, pursuant to Article 7.2 of the SPA.
The plaintiff seeks a declaratory relief, compensatory damages in an amount in excess of the jurisdictional limits for compulsory arbitration, pre-judgment and post-judgment interests, expenses, attorney fees, and costs, incurred in the investigation and this action.
They are represented by Ralph A. Finizio, Robert A. Gallagher, and Jane Fox Lehman of Pepper Hamilton LLP in Pittsburgh and Christopher W. Wasson of Pepper Hamilton LLP in Philadelphia.
Court of Common Pleas Allegheny County Case number GD-18-014821