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Litigation support: Steel Company vs. Engineering Company

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NPD is a Metallurgist, Electric Arc Furnace Process Technology Expert with world-class expertise in electric arc furnace design and operation, design of water cooled elements, material optimization for water cooled elements for furnace and off gas ducts, scrap preheating processes

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A Mexican Steel Company hired the US based engineering company to design special melt shop equipment. A two part purchase order called for the basic engineering and equipment design as part one and as an option for the equipment supply if the steel company would choose to act on this option.
A third party – a European engineering firm – offered the steel company after the US engineering firm had delivered the basic engineering and design for the equipment another solution for the melt shop equipment. The Mexican steel company purchased equipment from the European Engineering Company.
The US engineering company filed a law suit against the Mexican Steel company for breach of contract, having given to the European company proprietary design information and patent infringement.

This consultant received all engineering drawings from both engineering companies as well as the final proposals and purchase orders to be able to form an opinion.
This consultant was also able to see the equipment in operation in Mexico to judge whether the European company infringed on the numerous patents the US company held for this equipment.

The following conclusions were arrived at based on the drawings, the design calculations, the purchase orders. Communication documents as well as the site visit:

  1. The European company did not base their engineering on calculations and design drawings of the US engineering company.
  2. The European engineering company did not infringe on patents held by the US engineering company
  3. Based on the different approach of both engineering designs to the task on hand this consultant concluded that the Mexican Steel company did not hand over documents and design information they received from the US engineering company to the European engineering company since the design – basic and detail – of the complete melt shop equipment was different.
  4. The Mexican Steel company did not breach the purchase contract.

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Kevin Kennedy & Associates, Inc.
Rapid Response Engineering® Solutions
3905 Vincennes Road, Suite 320
Indianapolis, Indiana 46268
(317) 536-7000 voice
(317) 536-7220 fax

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