Tuesday, April 12, 2011, 4/12/2011 09:23:00 AM

$38 Million Arbitration Award Given to Norit NV Against ADA-ES Inc.

By Todd

The Wall Street Journal is reporting that ADA-ES Inc. has been hit with a $37.9 million arbitration award in a case brought by Norit NV. The arbitration panel found ADA breached a non-solicitation provision of a market development agreement with Norit and, in pari delicto with former Norit employees John Rectenwald and Steve Young, misappropriated certain trade secrets. The panel also ordered ADA to pay Norit a royalty on all activated carbon sales (10.5% for three years, and 7.0% for a further five years).


Arbitration awards in trade secrets cases are relatively rare. While ADA-ES Inc. may be considering its options, it is certainly difficult to overturn an arbitration award.


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