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IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY,
PENNSYLVANIA
HARSCO CORPORATION,
Plaintiff,
Civil Action No.: 0 1- Jf~f.. G~I { T~
v.
JL.- SCOTT TECHNOLOGIES, INC. and
-.,... TYCO INTERNATIONAL LTD,
Defendants.
PRAECIPE FOR WRIT OF SUMMONS
TO THE PROTHONOTARY:
Please issue a Writ of Summons in the above-captioned action.
Writ of Summons shall be issued and forward to (X ) Attorney () Sheriff.
Respectfully submitted,
Bridget
SupIerne ourt#56l05
Eckt;Ii Seamans Cherin & Mellott,
213 Market Street, Eighth Floor
Harrisburg PA 17101
'., (717) 237-6000
Attotneys for Plaintiff
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IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY,
PENNSYLVANIA
HARSCO CORPORATION,
Plaintiff,
Civil Action No.: D/ - Y.J..I:, (3e.> /( t~
v.
SCOTT TECHNOLOGIES, INC. and
TYCO INTERNATIONAL LTD,
Defendants.
WRIT OF SUMMONS
TO THE ABOVE NAMED DEFENDANT(S):
YOU ARE NOTIFIED THAT THE ABOVE-NAMED PLAINTIFF HAS
COMMENCED AN ACTION AGAINST YOU.
Date :....... )l.4.\.)e..... J.. J ':l ^ c J
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Prothonotary
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IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY,
PENNSYLVANIA
HARSCO CORPORATION,
Plaintiff,
Civil Action No.: 01-3826 Civil Term
v.
SCOTT TECHNOLOGIES, INC. and
TYCO INTERNATIONAL LTD,
Defendants.
ORDER OF COURT SCHEDULING HEARING ON MOTION FOR
PRELIMINARY INJUNCTION
AND NOW, this bl day of
JU4
,2001, upon consideration
of the Plaintiff's Motion for Preliminary Injunction, a Hearing on this matter is
scheduled in Courtroom L on ~ I /7 ,2cd, beginning at /:.3tP 1m.
BY THE COURT:
John G. Harkins, Jr., Esquire
Harkins & Cunningham
Suite 2800
2005 Market Street
Philadelphia, PA 19103
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IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY,
PENNSYLVANIA
HARSCO CORPORATION,
Plaintiff,
Civil Action No.: 01-3826 Civil Term
v.
SCOTT TECHNOLOGIES, INC. and
TYCO INTERNATIONAL LTD,
Defendants.
ORDER OF COURT - RULE TO SHOW CAUSE
AND NOW, this day of
, 200 1, upon consideration
of the Plaintiffs Motion for Preliminary Injunction, a Rule is hereby issued upon the
defendants to show cause why the requested relief should not be granted.
RULE RETURNABLE within _ days of the date of this Order.
BY THE COURT:
J.
John G. Harkins, Jf., Esquire
Harkins & Cunningham
Suite 2800
2005 Market Street
Philadelphia, PA 19103
L023975O.ooC;1
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IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY,
PENNSYLVANIA
HARSCO CORPORATION,
Plaintiff,
Civil Action No.: 01-3826 Civil Term
v.
SCOTT TECHNOLOGIES, INC. and
TYCO INTERNATIONAL LTD,
Defendants.
ORDER
AND NOW, this day of
,2001, upon consideration
of the Plaintiff's Motion for Preliminary Injunction, and following a hearing, the
Motion is GRANTED, and it is hereby ORDERED, ADJUDGED and DECREED that:
(a) Scott Technologies, Inc. and its officers, directors, employees, and
agents are enjoined from directly or indirectly breaching the exclusive
four-year Purchase Agreement with Harsco Corporation;
(b) Scott Technologies, Inc. is directed to comply with all of its obligations
under the Purchase Agreement for the duration of the Agreement;
L0239721.DOC: 1
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(c) Scott Technologies, Inc. is enjoined from procuring any cylinders and/or
types of cylinders covered by the Purchase Agreement from any source
other than Harsco;
(d) Scott Technologies, Inc. is directed to provide to Harsco a periodic
accounting of its requirements for and purchase of the cylinders and/or
types of cylinders covered by the Purchase Agreement, and further Scott
is directed to certify to the Court subject to the penalties of civil and
criminal contempt that its is satisfying those requirements by purchasing
exclusively from Harsco pursuant to the Purchase Agreement;
(e) Tyco International Ltd., and its officers, directors; employees, and
agents are enjoined from directly or indirectly inducing or otherwise
causing Scott to breach any of its obligations under the exclusive
Purchase Agreement with Harsco Corporation or otherwise interfering
with Scott's performance of its obligations under the exclusive Purchase
Agreement;
(f) Tyco International Ltd. Is directed to comply with any and all obligations
that the law would impose upon it in relation to the exclusive Purchase
Agreement; and
(g) To the extent that such matters are now or in the future may come within
Tyco's control, Tyco is directed to provide a periodic accounting of
Scott's requirements for and purchases of cylinders and/or types of
cylinders covered by the Purchase Agreement, and to certify to the Court
L023972l.DOC;l
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subject to the penalties of civil and criminal contempt that Scott is
satisfying those requirements by purchasing exclusively from Harsco
pursuant to the Purchase Agreement.
It is FURTHER ORDERED that the requirement of a bond is waived as not
being necessary because the continued performance of the Purchase Agreement is not
detrimental to any party.
BY THE COURT:
J.
L0239721.DOC; 1
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IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY,
PENNSYLVANIA
HARSCO CORPORATION,
Plaintiff,
Civil Action No.: 01-3826 Civil Term
v.
SCOTT TECHNOLOGIES, INC. and
TYCO INTERNATIONAL LTD,
Defendants.
NOTICE TO PLEAD
You are hereby notified to file a written response to Plaintiff s Motion for
Preliminary Injunction within twenty (20) days after service hereof, or within such shorter
time as ordered by the Court, otherwise a default judgment may be entered against you.
Respectfully submitted,
ECKERT SEAMANS CHERIN & MELLOTT, LLC
Date: b~ ~-O \
ontgomery, Esq ire
Supreme . I.D. #56105
Mark E. Gebauer, Esquire
Supreme Ct. I.D. #79646
213 Market Street, 8th Floor
Harrisburg, PA 17101
(717) 237-6000
Attorneys for Plaintiff, Harsco Corporation
{L0239679 ,I}
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IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY
,
PENNSYLVANIA
HARSCO CORPORATION,
Plaintiff,
Civil Action No.: 01-3826 Civil Term
v.
SCOTT TECHNOLOGIES, INC. and
TYCO INTERNATIONAL LTD,
Defendants.
MOTION FOR PRELIMINARY INJUNCTION
AND NOW, plaintiff Harsco Corporation ("Harsco"), by and through its
counsel Eckert Seamans Cherin & Mellott, LLC respectfully moves this Court pursuant
to the Pennsylvania Rules of Civil Procedure for a preliminary injunction to remain in
place for the duration of this litigation, enjoining defendants Scott Technologies, Inc.
("Scott") and Tyco International Ltd. ("Tyco") from breaching the terms of an
exclusive requirements contract and in support states as follows:
1. Harsco has filed a Complaint in this Court against Defendants Scott and
Tyco seeking preliminary and permanent injunctive relief and damages related to
Scott's repudiation of a four-year exclusive Purchase Agreement for certain
merchandise.
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2. Harsco is a single corporate entity with sever~l major business segments,
one of which is the Gas and Fluid Control Group, which is headquartered at 4718 Old
Gettysburg Road, Mechanicsburg, Pennsylvania 17055.
3. A manufacturing unit of the Harsco Gas and Fluid Control Group,
Structural Composite Industries, manufactures high-pressure composite cylinders for
use in, among other products, self-contained breathing apparatus and commercial
aviation oxygen systems.
4. Defendant Scott designs and manufactures, among other products, self-
contained breathing apparatus used in the frrefighting industry, and commercial aviation
oxygen systems, into which high-pressure composite cylinders are incorporated.
5. On or about April 1, 1999, Scott entered into an exclusive, four-year
Purchase Agreement with Harsco, pursuant to which Harsco agreed to supply, and
Scott agreed to purchase exclusively from Harsco, all of Scott's requirements of certain
composite cylinders as specified by Scott. A copy of the exclusive Purchase
Agreement with list of models, part numbers, and prices is attached hereto as Exhibit
"A."
6. From April 1, 1999, to the present, Harsco has substantially and
satisfactorily performed all of its obligations under the Purchase Agreement.
7. Scott has paid for the cylinders delivered by Harsco, thereby
acknowledging that Harsco has produced commercially acceptable products in
fulfillment of Harsco' s obligations under the Purchase Agreement.
{L0239681.1}
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8. In or about May 2001, defendant Tyco acquired Scott Technologies,
Inc., and its divisions, including Scott Health & Safety and Scott Aviation, and on
information and belief, Tyco has or will soon integrate Scott into the segment of Tyco's
business known as Tyco Fire and Security Services.
9. On information and belief, as a result of Tyco's acquisition of Scott,
Scott's business activities, including the performance of Scott's obligation to purchase
its composite cylinder requirements exclusively from Harsco, are subject to the
direction and control of Tyco.
10. Despite Harsco' s satisfactory performance under the Purchase
Agreement, Scott recently informed Harsco that Scott intends to repudiate the Purchase
Agreement and purchase the cylinders covered by the Purchase Agreement from
another manufacturer, which on information and belief is a competitor in the composite
cylinder manufacturing industry, Luxfer, Inc.
11. Harsco sought from Scott adequate assurances that Scott would continue
to perform its obligations under the Purchase Agreement, but Scott has refused to
sllpply such assurances.
12. Through written correspondence, Harsco recently confIrmed its
understanding that Scott had repudiated the Purchase Agreement, which correspondence
Scott has failed to negate or otherwise answer, verbally or in writing. A copy of
Harsco's correspondence is attached hereto as Exhibit "B.
13. Scott's repudiation and breach of the Purchase Agreement is wrongful,
without justifIcation, and will cause great harm to Harsco.
{L0239681.1 }
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14. At all relevant times, Tyco was aware of the contractual relations and
obligations existing between Harsco and Scott.
15. As stated, Tyco has acquired Scott and has or will integrate Scott into
Tyco's Fire and Security Services business.
16. Upon information and belief, at or about the time of Tyco's acquisition
of Scott, Tyco intentionally and improperly interfered with the contractual relations
between Scott and Harsco by instructing, inducing, or otherwise causing Scott to breach
and repudiate the exclusive Purchase Agreement with Harsco.
17. On information and belief, Tyco is seeking to acquire a fmancial interest
in a company that supplies cylinders and thus, it is in Tyco's financial interest to cause
Scott (now owned by Tyco) to buy cylinders from this competitor of Harsco.
18. From the time of Scott's recent indications that it intended to purchase
composite cylinders covered by the Purchase Agreement from another manufacturer, to
the present, the volume of orders received from Scott for such composite cylinders has
declined, thereby confirming its intentions to repudiate the Purchase Agreement.
19. As a result of the decline in orders from Scott for composite cylinders
covered by the Purchase Agreement, Harsco has determined that it will have to layoff
skilled production workers and, further, that recent organizational actions taken by
Harsco in the belief that the Purchase Agreement would be honored now will result in
harm to production and employee arrangements.
20. If the defendants are not enjoined from breaching the Agreement, Harsco
will lose not ouly the monetary benefIts of the Purchase Agreement, but will also suffer
{L0239681.1}
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irreparable harm, including but not limited to harm to its business reputation, harm to
its reputation in the investment community, harm to its employee and business
operations and harm to its workforce and production effIciency in its composite
cylinder manufacturing processes.
21. The immediate and irreparable harm to Harsco cannot be avoided by any
other means than preliminarily and permanently enjoining the defendants from
breaching the exclusive Purchase Agreement pending the outcome of a fInal hearing on
the merits.
22. The threatened harm to Harsco outweighs any possible harm to the
defendants from the issuance of a preliminary and permanent injunction because Harsco
is capable of and is willing to perform its contractual obligations under the Purchase
Agreement.
23. Harsco will present evidence at a hearing on this Motion that it is likely
to succeed on the merits, and that it is able to satisfy all other requirements for the
entry of a preliminary injunction in this matter.
24. Under the circumstances, any bond required for the issuance of a
preliminary injunction should be waived or be minimal because the defendants have an
existing obligation to perform the Purchase Agreement, and its purchase of cylinders
from Harsco as promised presents no detriment to the defendants.
25. Harsco Corporation respectfully requests that this Court set a hearing
date on this matter within the next fourteen (14) days.
{L0239681.1}
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WHEREFORE, Harsco Corporation respectfully requests this Court to enter its
Order:
(a) Preliminarily and permanently enjoining Scott Technologies, Inc. and its
officers, directors, employees, and agents from directly or indirectly
breaching the exclusive four-year Purchase Agreement with Harsco
Corporation;
(b) Directing Scott Technologies, Inc. to comply with all of its obligations
under the Purchase Agreement for the duration of the Agreement;
(c) Precluding Scott Technologies, Inc. from procuring any cylinders and/or
types of cylinders covered by the Purchase Agreement from any source
other than Harsco;
(d) Directing Scott Technologies, Inc. to provide to Harsco a periodic
accounting of its requirements for and purchase of the cylinders and/or
types of cylinders covered by the Purchase Agreement, and further
directing Scott to certify to the Court subject to the penalties of civil and
criminal contempt that its is satisfying those requirements by purchasing
exclusively from Harsco pursuant to the Purchase Agreement;
(e) Preliminarily and permanently enjoining Tyco International Ltd., and its
offIcers, directors, employees, and agents from directly or indirectly
inducing or otherwise causing Scott to breach any of its obligations
under the exclusive Purchase Agreement with Harsco Corporation or
{L0239681.1 }
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otherwise interfering with Scott's performance of its obligations under
the exclusive Purchase Agreement;
(1) Directing Tyco International Ltd. to comply with any and all obligations
that the law would impose upon it in relation to the exclusive Purchase
Agreement;
(g) To the extent that such matters are now or in the future may come within
Tyco's control, directing Tyco to provide a periodic accounting of
Scott's requirements for and purchases of cylinders and/or types of
cylinders covered by the Purchase Agreement, and certifying to the
Court subject to the penalties of civil and criminal contempt that Scott is
satisfying those requirements by purchasing exclusively from Harsco
pursuant to the Purchase Agreement; and
{L0239681.1}
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(h) A warding such further relief as the Court deems just and
appropriate.
Respectfully submitted,
ECKERT SEAMANS CHERlN & MELLOTT, LLC
. Montgomery,
Suprem t. LD. #56105
Mark E. Gebauer, Esquire
Supreme Ct. LD. #79646
One South Market Square Building
213 Market Street
Harrisburg, PA 17101
(717) 237-6000
Attorneys for Plaintiff
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PURCHA.SE AGREEMENT
It has b~~:t <1gred by Scan Aviation and SCI to ence, into <1 supply agre~me:1r for
cylinders for a period of four (.+) ye3Is. Scott a~e~s to buy exclusively, and SCl agrees
to furn.ish the cylinders which ,,,ill be the models and pa.n: numbers cllrre:tt]v being
purchased on Blanke: Orde~ 'i'umbers JS listed on the an<lched matrix. T:1e Ljll<1J1riries
shown on rhese (}rders wiiJ be [h~ basis for each of the four (-+) ye::u periods. SCOtt
reserves the right TO place orders for the ~;ame type or' cylinde:- from orhe:- ~:,r!inde:-
manurj,t.:::ure:-s if SCI fails to perrorm p:e~ i.be requirements of the Jnwing 3!,-"e-saic3!icn ,Jr
f.he promiseu jdive::: dnte-, JIIC C;JJU1ot provide Scott 'Nith ,1 re;J.Sonable re:::Jve:-~, ;:;bn ':Q
[nee:: 9roduc~ion or eastorner ;equire:n~:Hs. St::ou \:\1111 procure ::he o..{uantir:; cd ..;:.-iince:-s
ne:::ded r0r ,hat ,equire:n~m from othe: quaiiiied sources.
Th~ prit.::::s IDr (h~se c::iinde:; '."ill oe 3ho\VTI on rh~ bian.k:::~ ,Jr(:~~-;. J11G ',viii '';C: ,ir:n
throU!~!l ::he Y~:1r :000 'f':1e:; 7r.c~ ~or ~:1c:' ~:,,'Hnder mode: ;na;.' be in(=-~3$ei ~]~; : '.J,',) .n ~hc
~'e:l1' :00 t, 1)(}';) j,n 200: ,lod :-e':,e',\"e-:: J.g:!in in :oo~ i"o[ yr:c:,; .ld..iuStrn~:1ts basc'~ )r: ,::1172;-:::
~:.;()nomic conditions ,:u ~ha[ :ime. ,-\il c~:ljnde:s will 'Je ~:roduc~:l :n .lc2orci.J.nc::: "\i!t:' he
dn\vtng .l11U 5re~:iic.:l{ions ~rov~ded ;)y 5(~:)rt" P3ymt::1t "'::--:TlS I.H' ,.1c.:::;n;1ck :Jr,:,.:t:c: 'vii 1
be ch.'J.I1~es ~rom th~ st::1ndard :1e~ f50 d~:-'s w 71c~ .1: d;:tys. --?~;~:.::i'...'~ ',sirh :h~ ,.:;:l'~\:? ,)( :tl::
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VERIFICATION
I, ~"^" \ ~ u. \eo. pI" ..., am the S e . \J. p. of of Harsco Corporation, Inc, I
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hereby verify on behalf of Harsco Corporation that all of the averments of fact
contained in the foregoing document are true and correct to the best of my knowledge,
information and belief, I understand that false statements herein are made subject to the
penalties of 18 Pa, C,S.A. ~4904, relating to unsworn falsification to authorities,
{L0239681.1}
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June 13, 2001
Harseo Corporation
4716 Old Getlystlutg AQad
~. PA 1705$ VSA
P.O,6o><fl3'.
CAnp I-iIl, PA HOO1-B316\JSA
TeIaoI'lone: 717.763.5OGO
Fax: 717.731.7Q88
W4b':. www.h:M'$CQ.ccm
John McStravick, Vice President and General Manager
TYCO/Scott Health & Safety, Scott Technologies, Inc.
309 W. Crowell SI.
Monroe, NC 28110
Dear John,
This letter will serve to confirm our conversation this afternoon, June 13, 2001,
wherein you stated that TYCO/Scott Health &Safety intends to remain on its
current path (with Luxfer), thereby intending to breach the existing agreement
with SCI, Harsco Corporation, dated April 1, 1999, which sets forth certain
exclusivity requirements through the date of April 1, 2003. I can only conclude
that either TYCO/Scott: 1) regards the agreement dated April 1, 1999 as
unenforceable, or 2) believes that Harsco Corporation will not jeopardize any
future business arrangement by enforcing the existing agreement.
Please be advised that Harsco construeS the exclusivity requirement of the 1999
agreement as enforceable; accordingly, Harsco will proceed with any and all
necessary legal action to enforce the existing agreement I truly regret that
Harsco Corporation has been placed in the position of seeking legal redress to
enforce the contractual obligations undertaken by Scott prior to the acqUisition by
TYCO, Harsco Corporation l1as fully performed its obligations pursuant to the
April 1 , 1999 agreement. There has been no notice from Scott of any failure to
perform under the agreement to this date. '
At the request of Scott, prior to the acquisition by TYCO, Harseo submitted bid
quotes as the basis of a potential award of additional business, In the event that
Harsco was awarded that additional business, we were prepared to enter into an
agreement that would replace the 1999 agreement This bid process in no way
undermined our consistent reference to the requirements of the existing
agreement This understanding has been directly stated by me to Mark Kirk and
by Ron Eickelman to you,
~~~
S, V. P"Operations
** TOTAL PffiE, 02 **
~ ,-,
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JUN 15 '01 12:38 FR TAYLOR-WHARTON-GED-EX717 731 7988 TO 92376019
P,02/02
.. 'I ~
Har.sco
IIamco Ootpollltlon
4718 Old Gell\'SllUl'\l Road
MaohanioItlurg, PA 1 70SS USA
PO, 80><83'8
ConlP ftm, PA 17oo1oll318 USA
TIlIephono: 717.783.5Ol!O
Fo>c: 717.731,7988
YVIb: WWW'.harsa>.oom
June 15, 2001
John McStravick, Vice President and General Manager
TYeo/scott Health & Safety, Scott Technologies, Inc,
309 W, Crowell St.
Monroe, NC 28110
Dear John,
This letter confirms that you Informed me that you Intend to breach our exclusive
contract for the supply of certain composite cylinders, Further, you told me that
you Intend to take the business away from Harsco and give it to Luxfer despite
the fact that the contract does not expire for two more years,
Harsco Corporation will suffer damages that far exceed the monetary concerns
which are significant in and of themselves, The harm to our business
arrangements and to our reputation, to name a few, are of great concern to
Harsco, Nonetheless, you have apparently made your final decision and we must
go forward from here, My attempts to resolve the intended breach on behalf of
Harsco Corporation have been unsuccessful,
You should contact me directly If you have anything further to report to Harsco,
J)~rt,
~j(~
S, V. p" Operations
** TOTAL Pl'(JE,02 **
i,. ." ~"_,"".lJ~1
'" ! J jo.
CERTIFICATE OF SERVICE
I, Bridget E, Montgomery, Esquire, hereby certify that I am this day serving a
copy of the foregoing document upon the person(s) and in the manner indicated below,
which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure,
by depositing a copy of the same in the United States Mail, Harrisburg, Pennsylvania,
with first-class postage prepaid, as follows:
John G, Harkins, Jr., Esquire
Harkins & Cunningham
Suite 2800
2005 Market Street
Philadelphia, PA 19103
Mark Belnick, Esquire
Tyco International, Ltd,
9 West 57th Street, 43rd Floor
New York, NY 10019
~10~~~
Date:~~~ 9" 01
{L0239681.l}
10
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IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
HARSCO CORPORATION
Plaintiff,
v.
Civil Action No. 01-3826 Civil Term
SCOTT TECHNOLOGIES, INC. and
TYCO INTERNATIONAL LTD.
Defendants. :
ENTRY OF APPEARANCE
TO THE PROTHONOTARY:
Kindly enter our appearance as attorneys for defendants Scott Technologies, Inc, and
Tyco International Ltd, with respect to the above matter,
BY:
G, Harkins, Jr" Esquire (04441)
ara Brigham Denys, Esquire (78562)
2800 One Commerce Square
2005 Market Street
Philadelphia, PA 19103
(215) 851-6700
BY:
George ,Faller, Jr., Esquire (4
Ten East High Street
Carlisle, PA 17013
(717) 243-3341
Dated:
,\ (1(0\
Attorneys for Defendants
cn'~"
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.
.
, ,
CERTIFICATE OF SERVICE
i
.
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I, George B, Faller, Jr" Esquire, hereby certify that a true and correct copy of the
7((8/0(
on counsel listed below:
foregoing Entry of Appearance was served via United States First Class Mail, postage pre-paid,
{(lifo,
on
Dated:
Bridget E, Montgomery, Esquire
Echert Seamans Cherin & Mellott, LLC
213 Market Street, Eighth Floor
Harrisburg, P A 17101
Ge rge B, Faller, Jr" Esqui
Attorney for Defendants
",
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IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY
,
PENNSYLVANIA
HARSCO CORPORATION,
Plaintiff,
Civil Action No,: 01-3826 Civil Term
v,
SCOTT TECHNOLOGIES, INC. and
TYCO INTERNATIONAL LTD,
Defendants,
STIPULATION TO AMEND CAPTION
TO THE PROTHONOTARY:
Defendants have represented, without admitting any liability in connection with this
matter, that if any act, or failure to act, or event has occurred that in any ways involves a Tyco
entity in connection with this matter, that entity would be Tyco International (US), Inc,
Accordingly, the parties to the above-captioned matter stipulate to amend the caption and the
content of the Complaint to remove "Tyco International Ltd," as a defendant and to replace
"Tyco International Ltd," with "Tyco International (US) Inc,"
{L0240425.1}
'>,<'
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..
ECKERT SEAMANS CHERIN &
MELLOTT, LLC
HARKINS CUNNINGHAM
ridget E, Montgome ,Es
Supre Ct. LD, #561
Mark E, Gebauer, Esquire
Supreme Ct, LD, #79646
213 Market Street, 8th Floor
Harrisburg, PA 17101
(717) 237-6000
Attorneys for Plaintiff,
Harsco Corporation
By:
John G, Harkins, Esquire (04441)
Barbara Brigham Denys, Esquire (78562)
2800 One Commerce Square
2005 Market Street
Philadelphia, PA 19103
By:
George B. Faller, Jr., Esquir
MARTSON DEARDORFF WIL AMS
& OTTO, P.C.
George B, Faller, JI., Esquire (49813)
Ten East High Street
Carlisle, PA 17013
(717) 243-3341
Attorneys for Defendants
Dated.1:J8" 0 1
{L0240425.1}
" i-'~' ~'
.
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I Created: 017/19/01 09:04:42 AM
Revised: 07/19/01 09:04:48 AM
CERTIFICATE OF SERVICE
I, Nichole L. Myers, an authorized agent of Martson Deardorff Williams & Otto, hereby
certify that a copy of the foregoing Stipulation to Amend Caption was served this date by depositing
same in the Post OffIce at Carlisle, P A, first class mail, postage prepaid, addressed as follows:
Bridget E, Montgomery, Esquire
ECKERT SEAMANS CHERIN & MELLOTT, LLC
213 Market Street, 8th Floor
Harrisburg, P A 17101
MARTS ON DEARDORFF WILLIAMS & OTTO
By '- J\r;; JuJ-tl ~ -1YWjJl.!J-
Nichole L. Myers ~
Ten East High Street
Carlisle, P A 17013
(717) 243-3341
Dated: '7llg 10 I
-
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IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYL VANIA
HARSCO CORPORATION
Plaintiff,
v,
Civil Action No,: 01-3826 Civil Term
SCOTT TECHNOLOGIES, INC. and
TYCO INTERNATIONAL (US) INC.
Defendants.
DEFENDANTS' RESPONSE TO
PLAINTIFF'S MOTION FOR PRELIMINARY INJUNCTION
Defendants, by their undersigned counsel, hereby respond to plaintiffs Motion for
Preliminary Injunction as follows:
1, Admitted in part and denied in part. It is admitted only that plaintiff filed a
Complaint in this Court against Defendant Scott Technologies, Inc. ("Scott"). It is specifically
denied that Tyco International Ltd, is a defendant in this action, By stipulation, a true and correct
copy of which is attached hereto as Exhibit 1, the parties have agreed to amend the caption and
the Complaint in this matter to remove Tyco International Ltd, as a defendant and to replace
Tyco International Ltd. with Tyco International (US) Inc, Therefore, any references to Tyco
International Ltd, in plaintiffs Complaint and in plaintiffs Motion for Preliminary Injunction
will be construed to reference Tyco International (US) Inc, ("Tyco"), By way offurther answer,
although defendants admit that plaintiff filed a Complaint seeking preliminary and permanent
injunctive relief and damages related to an alleged purchase agreement, attached to plaintiffs
"',
'"'
Complaint and to plaintiffs Motion for Preliminary Injunction as Exhibit "A," Exhibit "A" is a
writing, the terms of which speak for themselves, and any characterization thereof by plaintiff is
denied, The remainder of the averments contained in this paragraph are conclusions oflaw to
which no response is required by the Pennsylvania Rules of Civil Procedure and they are deemed
denied.
2, Admitted,
3. Admitted, and defendants further aver that plaintiffs Structural Composite
Industries business unit ("SCI") is located in California and that Scott has dealt and deals with
SCI through SCI's place of business in California.
4. Admitted,
5. Admitted in part and denied in part, It is admitted only that Scott and SCI each
executed the document dated April I, 1999, a copy of which is attached to plaintiffs Motion for
Preliminary Injunction as Exhibit "A." Exhibit "A" is a writing, the terms of which speak for
themselves, and any characterization thereof by plaintiff is denied. The remainder ofthe
averments contained in this paragraph are conclusions of law to which no response is required by
the Pennsylvania Rules of Civil Procedure and they are deemed denied,
6, To the extent the averments contained in this paragraph are conclusions oflaw, no
response is required by the Peunsylvania Rules of Civil Procedure and they are deemed denied.
By way of further answer, Exhibit "A" is a writing, the terms of which speak for themselves, and
any characterization thereof by plaintiff is denied, To the extent paragraph 6 contains factual
averments, defendants deny that plaintiff (through SCI) has at all times met specification,
delivery and other terms in response to cylinder purchase orders from Scott.
7, To the extent the averments contained in this paragraph are conclusions oflaw, no
2
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response is required by the Pennsylvania Rules of Civil Procedure and they are deemed denied.
By way of further answer, Exhibit "A" is a writing, the terms of which speak for themselves, any
characterization thereof by plaintiff is denied, To the extent paragraph 7 contains factual
averments, it is specifically denied that Scott has acknowledged that plaintiff (through SCI) has
consistently provided commercially acceptable products in fulfillment of the purchase orders
placed with it by Scott, but admitted that Scott has paid for all acceptable cylinders purchased by
it at the prices agreed upon by the parties,
8, Admitted,
9, Admitted in part and denied in part, It is admitted only that certain of Scott's
business activities are subject to review by Tyco since the May 3,2001 acquisition of Scott by
Tyco, It is specifically denied that Tyco has directed or controlled the manner in which, or the
extent to which, Scott has or will acquire cylinders from SCI, and on the contrary, defendants
aver that such decisions are made by Scott management.
10, Admitted in part and denied in part. It is admitted only that Scott recently informed
plaintiffthat it had concluded that it would award Luxfer a contract for the supply of additional
cylinders, but defendants aver that no such contract has been awarded to Luxfer. By way of
further answer, defendants deny that SCI's performance has been satisfactory and aver that SCI
has not consistently met specifIcations, delivery and other terms of orders placed with it by Scott.
11. Admitted in part and denied in part, It is admitted only that Scott has not supplied
plaintiff with assurances that it would continue to purchase cylinders from it. By way of further
answer, Exhibit "A" is a writing, the terms of which speak for themselves, and any
characterization thereof by plaintiff is denied.
12. Admitted in part and denied in part. It is admitted only that plaintiff sent and Scott
3
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--w,.".
received the correspondence attached as Exhibit "B" to plaintiffs Motion for Preliminary
Injunction and that Scott has not responded to that correspondence; but defendants deny that the
letters accurately reflect communications with Scott and aver, on the contrary, that they are self-
serving efforts by plaintiff to support its view of the relations between Scott and SCI. With
regard to the averment concerning plaintiff's "understanding," after reasonable investigation,
defendants are without suffIcient knowledge or information to form a belief as to the truth of
such an averment. Therefore, it is denied and strict proof is demanded at the time of hearing,
13, The averments contained in this paragraph are conclusions oflaw to which no
response is required by the Pennsylvania Rules of Civil Procedure and they are deemed denied.
14, Admitted in part and denied in part. It is admitted only that Tyco became aware of
the writing attached to plaintiffs Motion for Preliminary Injunction as Exhibit "A" at or about
the time of its acquisition of Scott. By way of further answer, Exhibit "A" is a writing, the terms
of which speak for themselves, and any characterization thereof by plaintiff is denied, With
regard to any remaining factual allegations contained in this paragraph, after reasonable
investigation, defendants are without suffIcient knowledge or information to form a belief as to
the truth of those averments. Therefore, they are denied and strict proof is demanded at the time
of hearing.
15, Admitted.
16. Admitted in part and denied in part, It is admitted only that Scott, beginning in late
2000, negotiated with SCI, among others, for the supply of most of Scott's cylinder needs, which
negotiations went forward on the assumption that SCI could demonstrate that it could become a
more responsive and effIcient supplier to Scott; and defendants further aver that Scott concluded
that it could not gain sufficient comfort with respect to SCI's responsiveness. By way of further
4
~,~.- ~ .il',i,
answer, defendants specifically deny that Scott has been satisfied with its dealings with plaintiff
under the agreement at issue in this action, and, on the contrary, aver that SCI has not
consistently met specifications, delivery and other terms of orders placed with it by Scott; and
by way of further answer, defendants deny that negotiations between Scott and SCI ceased due,
in any part, to Tyco, and on the contrary, that they ceased because of Scott's assessment of SCI's
inability to satisfactorily supply all of Scott's cylinder needs in the future.
17. Denied, It is specifically denied that Tyco is seeking to acquire a financial interest
in a company, competing with plaintiff, that supplies cylinders,
18, Denied, Contrary to the averments of paragraph 18, Scott has continued to purchase
all of its needs of cylinders from SCI which are referenced in the schedule attached to Exhibit
"A."
19. Denied, Contrary to the inference in the averments of paragraph 19 of any perceived
"decline" in orders of cylinders referenced in the schedule attached to Exhibit "A," Scott has
continued to purchase all of its needs for such cylinders from SCI. With regard to the remaining
averments contained in this paragraph, defendants are without sufficient knowledge or
information to form a belief as to the truth of such averments. Therefore, they are denied and
strict proof is demanded at the time of hearing,
20, To the extent the averments contained in this paragraph are conclusions oflaw, no
response is required by the Pennsylvania Rules of Civil Procedure and they are deemed denied.
By way of further answer, Exhibit "A" is a writing, the terms of which speak for themselves, and
any characterization thereofby plaintiff is denied, To the extent that paragraph 20 might be
deemed to contain factual averments, after reasonable investigation, defendants are without
sufficient knowledge or information to form a belief as to the truth of those averments.
5
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Therefore, they are denied and strict proof is demanded at the time of hearing,
21. To the extent the averments contained in this paragraph are conclusions oflaw, no
response is required by the Pennsylvania Rules of Civil Procedure and they are deemed denied.
By way of further answer, Exhibit "A" is a writing, the terms of which speak for themselves, and
any characterization thereof by plaintiff is denied. To the extent that paragraph 21 might be
deemed to contain factual averments, after reasonable investigation, defendants are without
sufficient knowledge or information to form a belief as to the truth ofthose averments,
Therefore, they are denied and strict proof is demanded at the time of hearing,
22. To the extent the averments coIltained in this paragraph are conclusions of law, no
response is required by the Pennsylvania Rules of Civil Procedure and they are deemed denied,
Exhibit "A" is a writing, the terms of which speak for themselves, and any characterization
thereof by plaintiff is denied, By way of further answer, it is specifically denied that the alleged
hann to plaintiff outweighs the hann that Scott and Tyco would suffer by the imposition of the
preliminary and permanent injunctive relief plaintiff seeks, With regard to any remaining factual
allegations contained in this paragraph, after reasonable investigation, defendants are without
sufficient knowledge or information to form a belief as to the truth of those averments.
Therefore, they are denied and strict proof is demanded at the time of hearing,
23, The averments contained in this paragraph are conclusions oflaw to which no
response is required by the Pennsylvania Rules of Civil Procedure and they are deemed denied.
24, To the extent the averments contained in this paragraph are conclusions oflaw, no
response is required by the Pennsylvania Rules of Civil Procedure and they are deemed denied.
Exhibit "A" is a writing, the terms of which speak for themselves, and any characterization
thereof by plaintiff is denied, By way of further answer, it is specifically denied that plaintiffs
6
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",'hi<,
obligation to post a bond or to deposit legal tender under Pennsylvania Rule of Civil Procedure
1531 (b) may be waived under any circumstances, It is also specifically denied that the
imposition of the preliminary and permanent injunctive relief sought by plaintiff would not
present detriment to Scott and to Tyco, With regard to any remaining factual allegations
contained in this paragraph, after reasonable investigation, defendants are without sufficient
knowledge or information to form a belief as to the truth of those averments, Therefore, they are
denied and strict proof is demanded at the time of hearing.
25, The averments contained in this paragraph do not call for a response, By way of
further response, the Court has set a hearing for this matter on August 17,2001 at 1:30 p.m,
WHEREFORE, defendants Scott and Tyco respectfully request that the Court deny
plaintiffs Motion for Preliminary Injunction,
Respectfully submitted,
HARKINS CUNNINGHAM
John G. Harkins, Jr., Esquire (04441)
Barbara Brigham Denys, Esquire (78562)
2800 One Commerce Square
2005 Market Street
Philadelphia, PA 19103-7042
(215) 851-6700
- and-
7
Dated;
1 \ Iq~~1
, "'"
MARTSON DEARDORFF WILLIAMS
& OTTO, p,c.
BY:
George aller, Ir., Esquire 3)
Ten East High Street
Carlisle, PA 17013-3341
(717) 243-3341
Attorneys for Defendants
8
..
VERJflCA nON
,,' -"'-,, ..
1, JOl)n p, Mc$t\1lvick, Vice Pre$ident ~ GeneralM;ulllger ofSc()tt Technologies' Hi;\alth
~ Safety }'!roducts Gr!ll.lP' am authorized to make ~ verificatio'Q on behalf of defendant Scott
Technologies and verilY that the facts set forth in the foregoing Response to Plaintiff's Motion
for Preliminary Injunctipn arc true a]ld correct to the best of my information, knowledge;ml!
belief,
This v,,"rificatipn is xnlide subject tp tbl.' penaltil.'s of 18 Pa. C,g,A. * 4904 relatitl.g to
. - .
unsworn f;Usi:li~tion to auth,.,. ()n. ".ties.
, .
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. llAA j:!,1'4Q~tr~vic ... . '.'
Date: "7~ /7- Of
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VE1Uflc:;A T!()l~
1, Karl Kinkead, Sepior Vice Presid~t pfTy!'p S'tPPr~&i()p S~, am a~t!lo~ to
makl; thi~ verification on beb~f of def~ndanf. Tyeo Int!lfll~tiona1 (US) Inc. and verify that the facts
set forth in the foregoing Rel\ponse to Plaintiff"~ s MotiQ1l for preJiroinm:y Injunction lITO tree and
, , ' " " , ' - , ' '
correct to tlle best of my informa1iC!1l, knowledge and belief.
This verification is made subjec;t 10 the p~es of 1 $ Fa. e.S.A. ~, 4904 rel~g to
unsworn falsification to 8llthOrities.
.;A~&L
- ,,' ,n
Date: "'-12~~.1
,
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CERTIFICATE OF SERVICE
I, George B, Faller, Jr., Esquire, hereby certify that a true and correct copy of the
foregoing was served via United States First Class Mail, postage pre-paid, on 7(fl(/C (
(
on counsel listed below:
Dated: 4k-
Bridget E, Montgomery, Esquire
Echert Seamans Cherin & Mellott, LLC
213 Market Street, Eighth Floor
Harrisburg, P A 17101
c;];6
Attorney for Defendants
I
1 '
"'*' """
.
.
TO: Plaintiff Harsco Corooration
YOU ARE HEREBY NOTIFIED TO PLEAD
TO THE ENCLOSED NEW MA ITER WITHIN
TWENTY (20) DAYS FROM THE SERVICE
HEREOF OR A DEF AUL T JUDGMENT MAY
BE ENTERED AGAINST YOU
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
HARSCO CORPORATION
Plail\tiff,
v,
Civil Action No,: 01-3826 Civil Term
SCOTT TECHNOLOGIES, INC. and
TYCO INTERNATIONAL (US) INC,
Defendants.
ANSWER TO COMPLAINT WITH NEW MATTER
Defendants, by their undersigned counsel, hereby answer plaintiffs Complaint as
follows:
PARTIES
}, Admitted on information and belief.
2. Admitted that Scott Technologies, Ine, ("Scott") is a Delaware corporation and
further admit the remaining averments of paragraph 2,
3, Admitted,
"
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..
.
4, Denied. It is specifically denied that Tyco International Ltd. is a defendant in this
action. By stipulation, a true and correct copy of which is attached hereto as Exhibit I, the
parties have agreed to amend the caption and the Complaint in this matter to remove Tyco
International Ltd. as a defendant and to replace Tyco International Ltd. with Tyco International
(US) Inc. Therefore, any references in plaintiffs Complaint to Tyco International Ltd. will be
construed to reference Tyco International (US) Inc, ("Tyco"), By way offurther answer, Tyco is
a corporation with a place of business and service address in Exeter, New Hampshire,
5, Admitted and defendants aver by way offurther answer that the acquisition was
effective May 3, 2001.
JURISDICTION AND VENUE
6. The averments contained in this paragraph are conclusions of law to which no
response is required by the Pennsylvania Rules of Civil Procedure and they are deemed denied,
By way of further answer, to the extent that paragraph 6 might be deemed to contain averments
of fact, defendants deny that plaintiff is entitled to any equitable relief or that it has been
damaged, but defendants do not contest the Court's jurisdiction,
7, The averments contained in this paragraph are conclusions of law to which no
response is required by the Pennsylvania Rules of Civil Procedure and they are deemed denied.
By way of further answer, to the extent that paragraph 7 might be deemed to contain averments
of fact, defendants deny that Scott regularly conducts business in Cumberland County, but do not
contest venue in this Court,
2
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FACTUAL BACKGROUND
8, Admitted,
9, Admitted, and defendants further aver that plaintiffs Structural Composite
Industries business unit ("SCI") is located in California and that Scott has dealt and deals with
SCI through SCI's place of business in California.
10, Admitted.
11, Admitted in part and denied in part, It is admitted only that Scott and SCI each
executed the document dated April 1, 1999, a copy of which is attached to plaintiffs Complaint
as Exhibit "A." Exhibit "A" is a writing, the terms of which speak for themselves, and any
characterization thereof by plaintiff is denied. The remainder of the averments contained in this
paragraph are conclusions of law to which no response is required by the Pennsylvania Rules of
Civil Procedure and they are deemed denied.
12, The averments contained in this paragraph are conclusions oflaw to which no
response is required by the Pennsylvania Rules of Civil Procedure and they are deemed denied,
By way of further answer, Exhibit "A" is a writing, the terms of which speak for themselves, and
any characterization thereof by plaintiff is denied, To the extent that paragraph 12 might be
deemed to contain factual averments, after reasonab Ie investigation, defendants are without
sufficient knowledge or information to form a belief as to the truth of those averments,
Therefore, they are denied and strict proof is demanded at the time of trial.
13, The averments contained in this paragraph are conclusions oflaw to which no
response is required by the Pennsylvania Rules of Civil Procedure and they are deemed denied.
By way of further answer, Exhibit "A" is a writing, the terms of which speak for themselves, and
3
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;';"""."-'l
any characterization thereofby plaintiff is denied,
14, To the extent the averments contained in this paragraph are conclusions oflaw, no
response is required by the Peunsylvania Rules of Civil Procedure and they are deemed denied.
By way of further answer, Exhibit "A" is a writing, the terms of which speak for themselves, and
any characterization thereof by plaintiff is denied. To the extent paragraph 14 contains factual
averments, defendants deny that SCI has at all times met specification, delivery and other terms
in response to cylinder purchase orders from Scott, but admit that SCI has substantially
performed under such purchase orders, including the pricing terms thereof,
15, To the extent the averments contained in this paragraph are conclusions oflaw, no
response is required by the Pennsylvania Rules of Civil Procedure and they are deemed denied,
By way of further answer, Exhibit "A" is a writing, the terms of which speak for themselves, any
characterization thereofby plaintiff is denied. To the extent paragraph 15 contains factual
averments, it is specifically denied that Scott has acknowledged that plaintiff (through SCI) has
consistently provided commercially acceptable products in fulfillment of the purchase orders
placed with it by Scott, but admitted that Scott has paid for aU acceptable cylinders purchased by
it at the prices agreed upon by the parties,
16, Admitted in part and denied in part, It is admitted only that Scott, beginning in late
2000, negotiated with SCI, among others, for the supply of most of Scott's cylinder needs, which
negotiations went forward on the assumption that SCI could demonstrate that it could become a
more responsive and efficient supplier to Scott; and defendants further aver that Scott concluded
that it could not gain sufficient comfort with respect to SCI's responsiveness. By way of further
answer, defendants specificaUy deny that Scott has been satisfied with its dealings with plaintiff,
and, on the contrary, aver that SCI has not consistently met specifications, delivery and other
4
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.
terms of orders placed with it by Scott; and by way of further answer, defendants deny that
negotiations between Scott and SCI ceased due, in any part, to Tyco, and on the contrary, aver
that they ceased because of Scott's assessment ofSCI's inability to satisfactorily supply all of
Scott's cylinder needs in the future,
17, Admitted.
18, Admitted in part and denied in part. It is admitted only that certain of Scott's
business activities are subject to review by Tyco since the May 3,2001 acquisition of Scott by
Tyco. It is specifically denied that Tyco has directed or controlled the manner in which, or the
extent to which, Scott has or will acquire cylinders from SCI, and on the contrary, defendants
aver that such decisions are made by Scott management.
19, Admitted in part and denied in part, It is admitted only that Scott recently informed
plaintiff that it had concluded that it would award another company a contract for the supply of
additional cylinders, but defendants aver that no such contract has been awarded, By way of
further answer, defendants deny that SCI's performance has been satisfactory and aver that SCI
has not consistently met specifications, delivery and other terms of orders placed with it by Scott.
20, Admitted in part and denied in part. It is admitted only that Scott has not supplied
plaintiff with assurances that it would continue to purchase cylinders from it. By way of further
answer, Exhibit "A" is a writing, the terms of which speak for themselves, and any
characterization thereof by plaintiff is denied.
21. Admitted in part and denied in part, It is admitted only that plaintiff sent and Scott
received the correspondence attached as Exhibit "B" to plaintiffs Complaint and that Scott has
not responded to that correspondence; but defendants deny that the letters accurately reflect
communications with Scott and aver, on the contrary, that they are self-serving efforts by
5
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plaintiff to support its view of the relations between Scott and SCI. With regard to the averment
concerning plaintiffs "understanding," after reasonable investigation, defendants are without
sufficient knowledge or information to form a belief as to the truth of such an averment.
Therefore, it is denied and strict proof is demanded at the time oftrial.
22, Denied, Contrary to the averments of paragraph 22, Scott has continued to purchase
all of its needs of cylinders from SCI which are referenced in the schedule attached to Exhibit
"A."
23, Denied, Contrary to the inference in the averments of paragraph 23 of any perceived
"decline" in orders of cylinders referenced in the schedule attached to Exhibit "A," Scott has
continued to purchase all of its needs for such cylinders from SCI. With regard to the remaining
averments contained in this paragraph, defendants are without sufficient knowledge or
information to form a belief as to the truth of such averments, Therefore, they are denied and
strict proof is demanded at the time of trial.
24, The averments contained in this paragraph are conclusions of law to which no
response is required by the Pennsylvania Rules of Civil Procedure and they are deemed denied,
25, The averments contained in this paragraph are conclusions oflaw to which no
response is required by the Pennsylvania Rules of Civil Procedure and they are deemed denied.
6
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Count I - Breach of Contract
(Harsco v. Scott)
26. Defendants hereby incorporate by reference their answers to paragraphs I through
25 of plaintiffs Complaint as if fully set forth at length,
27, Admitted in part and denied in part. It is admitted only that Scott and SCI each
executed the document dated April I, 1999, a copy of which is attached to plaintiffs Complaint
as Exhibit "A." Exhibit "A" is a writing, the terms of which speak for themselves, and any
characterization thereof by plaintiff is denied, The remainder of the averments contained in this
paragraph are conclusions of law to which no response is required by the Pennsylvania Rules of
Civil Procedure and they are deemed denied.
28, To the extent the averments contained in paragraph 28 are conclusions of law, no
response is required by the Pennsylvania Rules of Civil Procedure and they are deemed denied,
By way of further answer, Exhibit "A" is a writing, the terms of which speak for themselves, and
any characterization thereofby plaintiff is denied. With regard to any factual averments
contained in this paragraph, after reasonable investigation, defendants are without sufficient
knowledge or information to form a belief as to the truth of those allegations, Therefore, they are
denied and strict proof is demanded at the time of trial.
29, To the extent the averments contained in this paragraph are conclusions of law, no
response is required by the Pennsylvania Rules of Civil Procedure and they are deemed denied.
By way of further answer, Exhibit "A" is a writing, the terms of which speak for themselves, and
any characterization thereofby plaintiff is denied, To the extent paragraph 29 contains factual
averments, defendants deny that Scott has discontinued the purchase from plaintiff of all its
needs for cylinders referenced in the schedule attached to Exhibit "A." On the contrary,
7
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defendants aver that Scott has continued to purchase all of its needs of cylinders from SCI which
are referenced in the schedule attached to Exhibit "A."
30. To the extent the averments contained in this paragraph are conclusions oflaw, no
response is required by the Pennsylvania Rules of Civil Procedure and they are deemed denied.
By way of further answer, Exhibit "A" is a writing, the terms of which speak for themselves, and
any characterization thereof by plaintiff is denied. To the extent paragraph 30 contains factual
averments, it is specifically denied that Scott has acknowledged that plaintiff (through SCI) has
consistently provided commercially acceptable products in fulfillment of the purchase orders
placed with it by Scott, but admitted that Scott has paid for all acceptable cylinders purchased by
it at the prices agreed upon by the parties,
31. The averments contained in this paragraph are conclusions of law to which no
response is required by the Pennsylvania Rules of Civil Procedure and they are deemed denied.
By way of further answer, Exhibit "A" is a writing, the terms of which speak for themselves, and
any characterization thereof by plaintiff is denied,
32, To the extent the averments contained in this paragraph are conclusions oflaw, no
response is required by the Pennsylvania Rules of Civil Procedure and they are deemed denied.
By way of further answer, Exhibit "A" is a writing, the terms of which speak for themselves, and
any characterization thereof by plaintiff is denied. To the extent paragraph 32 contains factual
averments, defendants admit only that Scott has not supplied plaintiff with assurances that it
would continue to purchase cylinders from it. By way of further answer, Scott recently informed
plaintiff that it had concluded that it would award Luxfer a contract for the supply of additional
cylinders, but defendants aver that no such contract has been awarded to Luxfer.
33, Admitted in part and denied in part, It is admitted only that Scott has not supplied
8
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plaintiff with assurances that it would continue to purchase cylinders from it. By way of further
answer, Exhibit "A" is a writing, the terms of which speak for themselves, and any
characterization thereof by plaintiff is denied,
34, Admitted in part and denied in part, It is admitted only that Scott has not supplied
plaintiff with assurances that it would continue to purchase cylinders from it. By way of further
answer, Exhibit "A" is a writing, the terms of which speak for themselves, and any
characterization thereof by plaintiff is denied; and defendants further aver that Scott is continuing
to purchase from SCI those cylinders referenced in the schedule attached to Exhibit "A."
35, The averments contained in this paragraph are conclusions of law to which no
response is required by the Pennsylvania Rules of Civil Procedure and they are deemed denied,
To the extent that paragraph 35 might be deemed to contain factual averments, after reasonable
investigation, defendants are without sufficient knowledge or information to form a belief as to
the truth of those averments, Therefore, they are denied and strict proof is demanded at the time
oftrial.
36. To the extent the averments contained in this paragraph are conclusions oflaw, no
response is required by the Pennsylvania Rules of Civil Procedure and they are deemed denied.
By way of further answer, Exhibit "A" is a writing, the terms of which speak for themselves, and
any characterization thereof by plaintiff is denied, To the extent that paragraph 36 might be
deemed to contain factual averments, defendants deny that Scott has ceased to purchase cylinders
from SCI referenced in the schedule attached to Exhibit "A," and, on the contrary, aver that Scott
has continued to do so, By way of further answer, after reasonable investigation, defendants are
without sufficient knowledge or information to form a belief as to the truth of the remaining
averments concerning "estimates" by plaintiff, Therefore, they are denied and strict proof is
9
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demanded at the time of trial.
37, To the extent the averments contained in this paragraph are conclusions oflaw, no
response is required by the Pennsylvania Rules of Civil Procedure and they are deemed denied,
By way of further answer, Exhibit "A" is a writing, the terms of which speak for themselves, and
any characterization thereof by plaintiff is denied, To the extent that paragraph 37 might be
deemed to contain factual averments, after reasonable investigation, defendants are without
sufficient knowledge or information to form a belief as to the truth of those averments.
Therefore, they are denied and strict proof is demanded at the time oftrial.
38. To the extent the averments contained in this paragraph are conclusions oflaw, no
response is required by the Pennsylvania Rules of Civil Procedure and they are deemed denied,
By way of further answer, Exhibit "A" is a writing, the terms of which speak for themselves, and
any characterization thereof by plaintiff is denied, To the extent that paragraph 38 might be
deemed to contain factual averments, after reasonable investigation, defendants are without
sufficient know ledge or information to form a belief as to the truth of those avelments,
Therefore, they are denied and strict proof is demanded at the time oftrial.
39, To the extent the averments contained in this paragraph are conclusions oflaw, no
response is required by the Pennsylvania Rules of Civil Procedure and they are deemed denied.
Exhibit "A" is a writing, the terms of which speak for themselves, and any characterization
thereof by plaintiff is denied. By way offurther answer, it is specifically denied that the alleged
harm to plaintiff outweighs the harm that Scott and Tyco would suffer by the imposition of the
preliminary and permanent injunctive relief plaintiff seeks, With regard to any remaining factual
allegations contained in this paragraph, after reasonable investigation, defendants are without
sufficient knowledge or information to form a belief as to the truth of those averments,
10
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Therefore, they are denied and strict proof is demanded at the time of trial.
40. To the extent the averments contained in this paragraph are conclusions oflaw, no
response is required by the Pennsylvania Rules of Civil Procedure and they are deemed denied.
Exhibit "A" is a writing, the terms of which speak for themselves, and any characterization
thereof by plaintiff is denied, By way of further answer, it is specifically denied that plaintiffs
obligation to post a bond or to deposit legal tender under Pennsylvania Rule of Civil Procedure
1531 (b) may be waived under any circumstances, It is also specifically denied that the
imposition of the preliminary and permanent injunctive relief sought by plaintiff would not
present detriment to Scott and to Tyco, With regard to any remaining factual allegations
contained in this paragraph, after reasonable investigation, defendants are without sufficient
knowledge or information to form a belief as to the truth of those averments, Therefore, they are
denied and strict proof is demanded at the time of trial.
Count II - Interference with Contractual Relations
(Harsco v. Tyco)
41. Defendants hereby incorporate by reference their answers to paragraphs 1 through
40
of plaintiff s Complaint as if fully set forth at length.
42, The averments contained in this paragraph are conclusions oflaw to which no
response is required by the Pennsylvania Rules of Civil Procedure and they are deemed denied.
By way of further answer, Exhibit "A" is a writing, the terms of which speak for themselves, and
any characterization thereof by plaintiff is denied.
43, Admitted.
44, Admitted in part and denied in part, It is admitted only that certain of Scott's
11
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business activities are subject to review by Tyco since the May 3, 2001 acquisition of Scott by
Tyco. It is specifically denied that Tyco has directed or controlled the manner in which, or the
extent to which, Scott has or will acquire cylinders from SCI, and on the contrary, defendants
aver that such decisions are made by Scott management.
45, Admitted in part and denied in part, It is admitted only that Tyco became aware of
the writing attached to plaintiffs Complaint as Exhibit "An at or about the time of its acquisition
of Scott. By way offurther answer, Exhibit "An is a writing, the terms ofwmch speak for
themselves, and any characterization thereof by plaintiff is denied, With regard to any remaining
factual allegations contained in this paragraph, after reasonable investigation, defendants are
without sufficient knowledge or information to form a belief as to the truth ofthose averments,
Therefore, they are denied and strict proof is demanded at the time of trial.
46, Admitted in part and denied in part. It is admitted only that Scott, beginning in late
2000, negotiated with SCI, among others, for the supply of most of Scott's cylinder needs, which
negotiations went forward on the assumption that SCI could demonstrate that it could become a
more responsive and efficient supplier to Scott; and defendants further aver that Scott concluded
that it could not gain sufficient comfort with respect to SCI's responsiveness. By way of further
answer, defendants specifically deny that Scott has been satisfied with its dealings with plaintiff
nnder the agreement at issue in this action, and, on the contrary, aver that SCI has not
consistently met specifications, delivery and other terms of orders placed with it by Scott; and
by way of further answer, defendants deny that negotiations between Scott and SCI ceased due,
in any part, to Tyco, and on the contrary, aver that they ceased because of Scott's assessment of
SCI's inability to satisfactorily supply all of Scott's cylinder needs in the future,
47, To the extent the averments contained in paragraph 47 are conclusions of law, no
12
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response is required by the Pennsylvania Rules of Civil Procedure and they are deemed denied.
By way of further answer, Exhibit "A" is a writing, the terms of which speak for themselves, and
any characterization thereof by plaintiff is denied, To the extent paragraph 47 contains factual
averments, it is specifically denied that Tyco has directed or controlled the manner in which, or
the extent to which, Scott has or will acquire cylinders from SCI, and on the contrary, defendants
aver that such decisions are made by Scott management,
48. Denied, It is specifically denied that Tyco has a financial interest to cause Scott to
buy cylinders from any of plaint iff's competitors as a result of any objective to acquire a
financial interest in a company that supplies cylinders.
49, The averments contained in this paragraph are conclusions oflaw to which no
response is required by the Pennsylvania Rules of Civil procedure and they are deemed denied.
By way of further answer, it is specifically denied that Tyco has engaged in any wrongful acts
whatsoever.
50, The averments contained in this paragraph are conclusions oflaw to which no
response is required by the Peunsylvania Rules of Civil procedure and they are deemed denied.
By way of further answer, it is specifically denied that Tyco has engaged in any wrongful acts
whatsoever.
51. The averments contained in this paragraph are conclusions oflaw to which no
response is required by the Pennsylvania Rules of Civil procedure and they are deemed denied.
By way of further answer, it is specifically denied that Tyco has engaged in any wrongful acts
whatsoever and it is further denied that Tyco has caused plaintiff to suffer any loss or damage of
any kind or nature; and by way of further answer, Tyco incorporates herein by reference the
answers to paragraphs 23 and 36 through 40 of the Complaint.
13
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-ii,
NEW MATTER
52, Plaintiffs Complaint fails to set forth a cause of action for breach of contract upon
which relief can be granted.
53, Plaintiffs Complaint fails to set forth a cause of action for interference with
contractual relations upon which relief can be granted,
54. Plaintiff has failed to mitigate damages,
55, If plaintiff sustained danlages as alleged in its Complaint, such damages being
expressly denied, then the damages were not proximately caused by any act or failure to act on
the part of Scott or Tyco,
56, If plaintiff sustained damages as alleged in its Complaint, such damages being
expressly denied, then the plaintiff, by its conduct, assumed the risk of those damages.
57, Each of the claims set forth in plaintiffs Complaint are barred in whole or in part by
the Pennsylvania Commercial Code, the California Uniform Commercial Code and/or the North
Carolina Uniform Commercial Code,
58. Plaintiffs claim for preliminary injunctive relief is barred by plaintiffs failure to file
a bond or legal tender under Pennsylvania Rule of Civil Procedure 153l(b).
WHEREFORE, defendants Scott and Tyco request that Counts I and II ofplaintiffs
Complaint be dismissed with prejudice.
HARKINS CUNNINGHAM
John G, Harkins, Jr., Esquire (04441)
Barbara Brigham Denys, Esquire (78562)
2800 One Commerce Square
2005 Market Street
Philadelphia, PA 19103-7042
(215) 851"6700
14
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Dated:
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MARTS ON DEARDORFF WILLIAMS
& OTTO, P.c.
BY:
George B, Faller, Jr., Esquir (49813)
Ten East High Street
Carlisle, PA 17013-3341
(717) 243-3341
Attorneys for Defendants
15
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IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY,
PENNSYLVANIA
HARSCO CORPORATION,
Plaintiff,
Civil Action No,: 01-3826 Civil Term
v,
SCOTT TECHNOLOGIES, INC, and
TYCO INTERNATIONAL LTD,
Defendants.
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STIPULATION TO AMEND CAPTION
TO THE PROTHONOTARY:
Defendants have represented, without admitting any liability in connection with this
miltter, that if any act, or failure to act, or event has occurred that in any ways involves a Tyco
entity in connection with this matter, that entity would be Tyco International (US), mc,
Accordingly, the parties to the above-captioned matter stipulate to amend the caption and the
content of the Complaint to remove "Tyco International Ltd," as a defendant and to replace
"Tyco International Ltd," with "Tyco International (US) Inc,"
EXHIBIT
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{L0240425.1}
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ECKERT SEAMANS CHERIN &
MELLO'IT, LLC
ridget E. Montgom
Supr Ct. I,D. #561
Mark E. Gebauer, Esquire
Supreme Ct. J.D. #79646
213 Market Street, 80h Floor
Harrisburg, PA 17101
(717) 237-6000
Attorneys for Plaintiff,
Harsco Corporation
Dated..1:J8" 0 1
{L0240425.1 }
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HARKINS CUNNINGHAM
By:
John G. Harkins, Esquire (04441)
Barbara Brigham Denys, Esquire (78562)
2800 One Commerce Square
2005 Market Street
Philadelphia, PA 19103
By:
George B. aller, Jr., Esquir
MARTSON DEARDORFF WIL
& OTTO, P.C.
George B. Faller, Jr" Esquire (49813)
Ten East High Street
Carlisle, PA 17013
(717) 243-3341
Attorneys for Defendants
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Cnalctl Ui'/19!OI 09:04:42 AM
RevisCll: 07fl9101 09:04:48 AM
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CERTIFICATE OF SERVICE
I, Nichole 1. Myers, an authorized agent of Martson Deardorff Williams & Otto, hereby
certify that a copy ofthe foregoing Stipulation to Amend Caption was served this date by depositing
same in the Post Office at Carlisle, P A, first class mail, postage prepaid, addressed as follows:
Bridget E, Montgomery, Esquire
ECKERT SEAMANS CHERIN & MELLOTT, LLC
213 Market Street, 8th Floor
Harrisburg, P A 171 0 I
MARTSON DEARDORFF WILLIAMS & OTTO
By ~ _lO-tJ.. ct- ----r'RM.( J'lJ(-
Nichole 1. Myers ~
Ten East High Street
Carlisle, PA 17013
(717) 243-3341
Dated: 1!lq/o I
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VERIFICATION
1, John p, McStravick, Vice President HL Gell!lIlil Manager of Scott Techllologies' Health
& Safet:Y Products Group, am authorizlXl to m;1ke this verification on behalf ()f ciefemlilIlt Scott
Technologies and verify that the facts s~t forth ill tlJc foregoing Answer to CornpJllint witl1 J.iew
Ma. Iter are. tru. . e a.nd COlT. cet to theoost of my 4tforJ11ation, knowJelige and be qef
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This veriticl',tion is made subject to the Ilell~ties of 18 I"a, C,S,A, ~ 4904 relati:qg to
unSWOHl falsificatioll W authorities,
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.o)lb 0: McS~yick oOc ....... .0
Pate: 7- /7-a/
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VERlF!C~ TI()N
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I, Kar1 Kinkell!i. SeniQr Vice Pre!;i41Ylt 9fTYW ~HJlH!l:Sg()1l Sy~, lllI1l1UtlIorize4 to
mak!J this verification (In beh!l1f of defeI19<mt Tyco IIlt!lfIlatio11ll1 (J.J~) Ine, llJld v~ th"t ~l1e fa,ct~
set forth in the (or~Qing Allswer to COI]1!l~nt wjt~ NllW Mll1:ter ~ trIl~ ~a C()JT!:Ct tp t1ie b~
of lIlY informatj9!l, !ci1()wle!i~~ ami belief,
'I11is Y~~#-ol' is malieSlJ.bjlWt to tl1ll pel1,*ti~ of 181'~ C.s,.1\,. ~9()4 rel~fiJlg tp
Ul!sw()rn fa}smCll,tioll tQ @utl1oriti..s.
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CERTIFICATE OF SERVICE
I, George B, Faller, Ir., Esquire, hereby certify that a true and correct copy ofthe
foregoing was served via United States First Class Mail, postage pre-paid, on 7 (/1 (() )
on counsel listed below:
Bridget E, Montgomery, Esquire
Echert Seamans Cherin & Mellott, LLC
213 Market Street, Eighth Floor
Harrisburg, P A 17101
~,
George B, Faller, Ir" Esquire
Attorney for Defendants
Dated:
1\tq(D\
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A
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
HARSCO CORPORATION,
Plaintiff,
Civil Action No,: 01-3826 Civil Term
v,
SCOTT TECHNOLOGIES, INC, and
TYCO INTERNATIONAL LTD,
Defendants,
NOTICE TO DEFEND
You have been sued in court, If you wish to defend against the claims set forth in the
following pages, you must take action within twenty (20) days after this complaint and notice
are served, by entering a written appearance personally or by attorney and fIling in writing
with the court your defenses or objections to the claims set forth against you, You are warned
that if you fail to do so the case may proceed without you and a judgment may be entered
against you by the court without further notice for any money claimed in the complaint or for
any other claim or relief requested by the plaintiff, You may lose money or property or other
rights important to you,
YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF
YOU DO NOT HAVE ALA WYER OR CANNOT AFFORD ONE, GO TO OR
TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN
GET LEGAL HELP,
Lawyers Reference Service
Cumberland County Bar Association
2 Liberty Avenue
Carlisle, PA 17013
800-990-9108
{L0239700.1}
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IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
HARSCO CORPORATION,
Plaintiff,
Civil Action No,: 01-3826 Civil Term
v,
SCOTT TECHNOLOGIES, INC. and
TYCO INTERNATIONAL LTD,
Defendants,
NOTICIA
Le han demandado a usted en la corte, Si usted quiere defenderse de estas demandas
expuestas en las paginas siguientes, usted tiene viente (20) dias de plazo al partir de la fecha de
la demanda y la notifIcacion, Usted debe presentar una apariencia escrita 0 en persona 0 por
abogado y archivar en la corte en forma escrita sus defensas 0 sus objeciones alas demandas
en contra de su persona, Sea avisado que si usted no se defIende, la corte tomara medidas y
puede entrar una orden contra usted sin previo aviso 0 notificacion y pOI cualqnier queja 0
alivio que es pedido en la peticion de demanda, Usted puede perder dinero 0 sus propiedades
o otros derechos importantes para usted,
LLEVE ESTA DEMANDA A UN ABODAGO IMMEDIATAMENTE, SI NO TIENE
ABOGADO 0 SI NO TIENE EL DINERO SUFICIENTE DE PAGAR TAL SERVICIO,
V A Y A EN PERSONA 0 LLAME POR TELEFONO A LA OFICINA CUY A DIRECCION
SE ENCUENTRA ESCRlTA ABAJO PARA A VERlGUAR DONDE SE PUEDE
CONSEGUIR ASISTENCIA LEGAL.
Lawyers Reference Service
Cumberland County ,Bar Association
Carlisle, PA 17013
800-990-9108
{L0239700.1}
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IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY
,
PENNSYLVANIA
HARSCO CORPORATION,
Plaintiff,
Civil Action No,: 01-3826 Civil Term
v,
SCOTT TECHNOLOGIES, INC, and
TYCO INTERNATIONAL LTD,
Defendants,
COMPLAINT
AND NOW, Plaintiff, Harsco Corporation by and through its counsel Eckert
Seamans Cherin & Mellott, LLC, files this Complaint in Breach of Contract and
Interference with Contractual Relations against Defendants, Scott Technologies, Inc,
and Tyco International Ltd" seeking preliminary and permanent injunctive relief and
damages, arising from Scott Technologies, Inc, 's wrongful repudiation of a four year
exclusive requirements Purchase Agreement for the purchase of certain composite
cylinders from Harsco Corporation, and in support thereof states as follows:
PARTIES
1. Plaintiff Harsco Corporation ("Harsco") is a corporation organized and
operating under the laws of the State of Delaware, with its principal place of business
in Cumberland County, Pennsylvania,
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2, Defendant Scott Technologies, Inc, ("Scott") is a Delaware corporation,
which is registered to conduct business in the Commonwealth of Pennsylvania, and has
a principal place of business in Ohio, and other facilities in New York and North
Carolina,
3, Scott maintains business divisions referred to as Scott Health & Safety
(which manufactures and supplies self-contained breathing apparatus) and Scott
Aviation (which manufactures and supplies commercial aviation oxygen systems),
4, Defendant Tyco International Limited ("Tyco") is a corporation
organized under the laws of Bermuda and/or the State of Massachusetts, with a place of
business and service address at One Tyco Park, Exeter, New Hampshire, 03833,
5, On information and belief, Tyco recently acquired Scott, including the
Scott Health & Safety and Aviation divisions,
JURISDICTION AND VENUE
6, This action for equitable relief and damages is between parties subject to
this Court's jurisdiction, and the damages sought are in excess of the arbitration limits
of the Court.
7, Venue is proper in this Court pursuant to Pennsylvania Rule of Civil
Procedure 2179, in that Scott regularly conducts business in Cumberland County, and a
transaction or occurrence took place in Cumberland County out of which the cause of
action arose,
L0239603
2
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FACTUAL BACKGROUND
8, Harsco is a single corporate entity with several major business segments,
one of which is the Gas and Fluid Control Group, which is headquartered at 4718 Old
Gettysburg Road, Mechanicsburg, Pennsylvania 17055,
9, A manufacturing unit of the Harsco Gas and Fluid Control Group,
Structural Composite Industries, manufactures high-pressure composite cylinders for
use in, among other products, self-contained breathing apparatus and commercial
aviation oxygen systems,
10, Scott designs and manufactures, among other products, self-contained
breathing apparatus used in the firefIghting industry, and commercial aviation oxygen
systems, into which high-pressure composite cylinders are incorporated,
11. On or about April 1, 1999, prior to Tyco's acquisition of Scott, Scott
entered into an exclusive, four-year Purchase Agreement with Harsco, pursuant to
which Harsco agreed to supply, and Scott agreed to purchase exclusively from Harsco,
all of Scott's requirements of certain composite cylinders as specified by Scott, A copy
of the exclusive Purchase Agreement with list of models, part numbers, and prices is
attached hereto as Exhibit "A", in accordance with Pa, R. Civ, p, 1019(i),
12, In consideration of Scott's promise under the Purchase Agreement to
purchase from Harsco all of its requirements of certain cylinders for a period of four
years, Harsco agreed to provide the cylinders at reduced prices,
13, Under the terms of the Purchase Agreement, Scott is prohibited from
purchasing any of the cylinders specified in the Purchase Agreement from any source
L0239603
3
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other than Harsco unless Harsco is unable to satisfy a particular order and is unable to
provide a reasonable plan of recovery related to such order, in which case Scott may
purchase from an alternative source only the type and quantity of cylinders that Harsco
is unable to supply,
14, From April 1, 1999, to the present, Harsco has substantially and
satisfactorily performed all of its obligations under the Purchase Agreement, and has
provided Scott the cylinders it has ordered, at the reduced prices agreed upon in
consideration of Scott's promise to exclusively purchase from Harsco all composite
cylinders covered by the Purchase Agreement,
15, Scott has paid consistently for the cylinders delivered by Harsco, thereby
acknowledging that Harsco has produced commercially acceptable products in
fulfillment of Harsco' s obligations under the Purchase Agreement,
16, Harsco's performance, including the quality, quantity, and delivery of
the cylinders delivered to Scott, satisfied Scott to such a degree that prior to Tyco's
acquisition of Scott, Scott negotiated with Harsco to expand the models and quantities
of cylinders exclusively supplied by Harsco but, upon information and belief, Tyco
demanded that said negotiations come to a halt at or about the time of its acquisition of
Scott,
17, In or about May 2001, Tyco acquired Scott Technologies, Inc" and its
divisions, including Scott Health & Safety and Scott Aviation, and on information and
belief, Tyco has or will soon integrate Scott into the segment of Tyco's business known
as Tyco Fire and Security Services,
L0239603
4
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18, On information and belief, as a result of Tyco's acquisition of Scott,
Scott's business activities, including the performance of Scott's obligation to purchase
its composite cylinder requirements exclusively from Harsco, are subject to the
direction and control of Tyco,
19, Despite Harsco's satisfactory performance under the Purchase
Agreement, Scott recently informed Harsco that Scott intends to purchase the cylinders
covered by the Purchase Agreement from another manufacturer, which on information
and belief is a competitor in the composite cylinder manufacturing industry, Luxfer,
Inc,
20, Harsco sought from Scott adequate assurances that Scott would continue
to perform its obligations under the Purchase Agreement, but Scott has refused to
supply such assurances,
21. Through written correspondence, Harsco recently confIrmed its
understanding that Scott had repudiated the Purchase Agreement, which correspondence
Scott has failed to negate or otherwise answer, verbally or in writing, A copy of
Harsco's correspondence is attached hereto as Exhibit "B,
22, From the time of Scott's recent indications that it intended to purchase
composite cylinders covered by the Purchase Agreement from another manufacturer, to
the present, the volume of orders received from Scott for such composite cylinders has
declined, thereby confIrming its intentions to repudiate the Purchase Agreement,
23, As a result of the decline in orders from Scott for composite cylinders
covered by the Purchase Agreement, Harsco has determined that it will have to layoff
L0239603
5
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, ~'''''%!Jr",
skilled production workers and, further, that recent organizational actions taken by
Harsco in the belief that the Purchase Agreement would be honored now will result in
harm to production and employee arrangements,
24, Scott's repudiation and breach of the Purchase Agreement is wrongful,
without justification, and will cause great harm to Harsco,
25, All conditions precedent to Harsco' s right to seek relief have been
performed or have otherwise occurred,
Count I - Breach of Contract
(Harsco v. Scott)
26, Paragraphs 1 through 25, above, are incorporated herein by reference in
their entireties, and are made a material part of this Count I.
27, Harsco and Scott entered into a valid and enforceable contract whereby
Scott agreed to, among other things, exclusively purchase all of is requirements for
specified composite cylinders from Harsco, See Exhibit A, attached hereto,
28, In consideration of Scott's promise to purchase such cylinders
exclusively from Harsco and the payment of Scott for the purchased cylinders, Harsco
agreed to satisfy Scott's cylinder requirements at a reduced price per cylinder.
29, Harsco and Scott performed under the Purchase Agreement for more
than two years, from the April 1, 1999 date of execution until Scott's recent repudiation
of the Agreement,
L0239603
6
-,~
~"
30, Harsco has substantially complied with all of its obligations under the
Purchase Agreement and has faithfully supplied, at reduced prices, cylinders to meet
Scott's requirements,
31. No event has occurred that would permit Scott to purchase a type of
cylinder covered by the Purchase Agreement from any source other than Harsco,
32, In breach of its obligations under the Purchase Agreement, including but
not limited to the duty of good faith and fair dealing, Scott has wrongfully and without
justifIcation decided to purchase cylinders covered by the Purchase Agreement from a
source other than Harsco,
33, Harsco has sought from Scott adequate assurances of continued
performance under the Purchase Agreement, which assurances Scott has failed to
provide,
34, Harsco has urged Scott to retract its repudiation of the Purchase
Agreement, but Scott has wrongfully failed to do so,
35, All conditions precedent have been performed or have otherwise
occurred,
36, Based upon the quantities and prices of orders placed by Scott from
April 1, 1999 to its recent repudiation of the exclusive Purchase Agreement, Harsco
estimates that it will lose approximately $10 million ($10,000,00,00) as a result of
Scott's breach,
37, In addition to the monetary losses that Harsco will suffer as a result of
Scott's breach, if Scott is not preliminarily and permanently enjoined from any further
L0239603
7
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breach of the exclusive Purchase Agreement, Harsco will suffer immediate and
irreparable harm, including but not limited to harm to its business reputation, business
structures and operations, workforce, production effIciency, and reputation in the
investment community,
38, The immediate and irreparable harm to Harsco cannot be avoided by any
other means than preliminarily and permanently enjoining Scott from breaching the
exclusive Purchase Agreement pending the outcome of a fmal hearing on the merits,
39, The threatened harm to Harsco outweighs any possible harm to Scott
from the issuance of a preliminary and permanent injunction because Harsco is capable
of and is willing to perform its contractual obligations under the Purchase Agreement,
40, Under the circumstances, any bond required for the issuance of a
preliminary injunction should be waived or be minimal because Scott has an existing
obligation to perform the Purchase Agreement, and its purchase of cylinders from
Harsco as promised presents no detriment to Scott,
Wherefore, Harsco Corporation respectfully requests that this Court enter
Orders:
(a) Preliminarily and permanently enjoining Scott Technologies, Inc, and its
officers, directors, employees, and agents from directly or indirectly
breaching the exclusive four-year Purchase Agreement with Harsco
Corporation;
(b) Directing Scott Technologies, Inc, to comply with all of its obligations
under the Purchase Agreement for the duration of the Agreement;
L0239603
8
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(c) Precluding Scott Technologies, Inc, from procuring any cylinders and/or
types of cylinders covered by the Purchase Agreement from any source
other than Harsco;
(d) Directing Scott Technologies, Inc, to provide to Harsco a periodic
accounting of its requirements for and purchase of the cylinders and/or
types of cylinders covered by the Purchase Agreement, and further
directing Scott to certify to the Court subject to the penalties of civil and
criminal contempt that its is satisfying those requirements by purchasing
exclusively from Harsco pursuant to the Purchase Agreement;
( e) Awarding Harsco all damages, fees, and costs incurred as a result of
Scott Technologies, Inc, 's breach of the Purchase Agreement; and
(1) A warding such further relief as the Court deems just and appropriate,
Count II - Interference with Contractual Relations
(Harsco v. Tyco)
41. Paragraphs 1 though 40, above, are incorporated herein by reference in
their entireties, and are made a material part of this Count II,
42, The Purchase Agreement constitutes a valid and enforceable contract
between Harsco and Scott,
43, In or about May 2001, Tyco acquired Scott Technologies, Inc, , and its
divisions, including Scott Health & Safety and Scott Aviation, and on information and
belief, Tyco has or will soon integrate Scott into the segment of Tyco's business known
as Tyco Fire and Security Services,
L0239603
9
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44, On information and belief, as a result of Tyco's acquisition of Scott,
Scott's business activities, including the performance of Scott's obligation to purchase
its composite cylinder requirements exclusively from Harsco, are subject to the
direction and control of Tyco,
45, At aU relevant times, Tyco was aware of the contractual relations and
obligations existing between Harsco and Scott,
46, Upon information and belief, at or about the time of Tyco's acquisition
of Scott, Tyco directed that Scott cease negotiations with Harsco for an expansion of
the exclusive requirements dealings between Harsco and Scott,
47, Upon information and belief, at or about the time of Tyco's acquisition
of Scott, Tyco intentionally and improperly interfered with the contractual relations
between Scott and Harsco by instructing, inducing, or otherwise causing Scott to breach
the existing and valid exclusive Purchase Agreement with Harsco,
48, On information and belief, Tyco is seeking to acquire a financial interest
in a company that supplies composite cylinders and thus, it is in Tyco's fmancial
interest to cause Scott (now owned by Tyco) to buy cylinders from this competitor of
Harsco,
49, Tyco' s wrongful acts were unprivileged and improper and were not
taken to protect legitimate business concerns,
50, Tyco's wrongful acts were intentional and outrageous, taken to further
its own pecuniary interests, with wanton disregard for the interests and rights of
L0239603
10
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Harsco, and without due regard for the contractual obligations Scott was obligated to
perform,
51. As a direct and proximate result of Tyco's wrongful acts, Harsco has
suffered and will continue to suffer monetary losses, and is entitled to preliminary and
permanent injunctive relief, for the reasons set forth more fully in Paragraphs 23 and
36 through 40, above, which are incorporated herein by reference in their entireties,
Wherefore, Harsco Corporation respectfully requests that this Court enter
Orders:
(a) Preliminarily and permanently enjoining Tyco International Ltd" and its
officers, directors, employees, and agents from directly or indirectly
inducing or otherwise causing Scott to breach any of its obligations
under the exclusive Purchase Agreement with Harsco Corporation or
otherwise interfering with Scott's performance of its obligations under
the exclusive Purchase Agreement;
(b) Directing Tyco International Ltd, to comply with any and all obligations
that the law would impose upon it in relation to the exclusive Purchase
Agreement;
(c)
To the extent that such matters are now or in the future may come within
Tyco's control, directing Tyco to provide a periodic accounting of
Scott's requirements for and purchases of cylinders and/or types of
cylinders covered by the Purchase Agreement, and certifying to the
Court subject to the penalties of civil and criminal contempt that Scott is
L0239603
11
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satisfying those requirements by purchasing exclusively from Harsco
pursuant to the Purchase Agreement;
(d) Awarding Harsco all damages, fees, and costs incurred as a result of
Tyco's wrongful actions; and
(e) A warding such further relief as the Court deems just and appropriate,
WHEREFORE Harsco Corporation prays for judgment in its favor in this
action, and for an Order from the Court as follows:
(a) Declaring Scott Technologies, Inc, to be in breach of its obligations
under the Purchase Agreement;
(b) Declaring Tyco International, Ltd, liable for interfering with the
contractual relations between Harsco Corporation and Scott
Technologies, Inc;
(c) Awarding Harsco all of the injunctive and other equitable relief
requested under Counts One and Two in this action;
(d) Awarding Harsco damages caused by the conduct complained of under
Counts One and Two in this action;
(e) Awarding Harsco its costs of suit and fees incurred;
(1) Awarding Harsco punitive and/or exemplary damages to the extent
allowed by applicable law; and
L0239603
12
(g) Awarding Harsco such further relief as the Court deems just and
appropriate,
DATED: b,~Q<J-Dl
L0239603
Respectfully submitted,
ECKERT SEAMANS CHERIN & MELLOTT, LLC
Bridget ontgomery, Esq e
Supreme Ct, I.D, #56105
One South Market Square Building
213 Market Street
Harrisburg, PA 17101
(717) 237-6000
13
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VERIFICATION
I, ~<:>""'\~ U, \c"pl"", am theSg.V, p, at' of Harsco Corporation, Inc, I
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hereby verify on behalf of Harsco Corporation that all of the averments of fact
contained in the foregoing document are true and correct to the best of my knowledge,
information and belief, I understand that false statements herein are made subject to the
penalties of 18 Pa, C,S,A, ~4904, relating to unsworn falsifIcation to authorities,
{L023%Sl.l}
4(
!
PURC!-L-",SE AGREEi\IEH
It has b~~n agreed by Scan Aviation and SCI to enter into a supply agre~mem for
cylinders tar a period of four (+) years. Scott agrees to buy exclusively, and SC! agrees
to furnish the cvlinders which ",iJJ be the models md pa.n: numbers curre:ttlv being
purchased on Blanke: Order '<1.lIT1bers as listed on the att<lched matrix. The quanti[i~s
shown on r.h~se orders ",ii! be the basis for each of the four (--+) ye::u periods, SCOtt
rese.::'/es ~he righr TO place orders for the same rype or" cytinde:- frorn orhe:- ~:y!inde:-
manurb.c:1.1re:s If SCI rails to perrorm pc: the requiremen[$ l)r" the jnwing S'ge::iric::uioG oJr
che promisei de!ive:y dare. IDd cnnno( provide St,;oa wirh J ce:.l5onable recov~~:~. plan ~o
meet produc:ion or customer require:ne::Jrs. Scoa 'Nill procure ~he quanur.:;-(~r' ..::::iince:s
needed [or that requirem~nt tram other qualiii.ed sources,
The pric~s tor these cy1inde:-s '.viII be .:;no\vrr lJn ;:he biank~~ vrc:e:-s. .l11U ':...ti! ']e jr:71
through. i:he ;-'c:.:JI :000. T~e :Jrice ~or ~:J.C:t c:.:!inder i:llodei :n<J.;.' be- :nc;-e::1::led ~:' i'L" ,n ~nc
y~ 201) I. 1)0'1) ttl 200: and re',~lt::"ves ;1gnin in ::003 i"or 9r:c~ .ll.iiusrmc:1ts ~Ja:5c,::~ .H': ,':~r.-::::;:
economIC ~ondi[ions a[ -.::hm :im~. ,.l.ll c:~'[inde=-s will Je ;:rociuc~:.i :n .lccorC.:l11C~ ,V"1f.h :h.c
dhl\ving mG :ir-t.::~:rlc3rions provide:: :;:r St:on. P:1ymc:1r ~e~s dt' .1c:::-;:Haoic )rC'c~L:C' viii
be chan!?ed ~rom the standard :1e~ 61) (l::1Ys :0 J.~~ .1~ ;j.J.~J'5.. ~(i~,::i'..c ..vlrh :h::: ,:.J.lC .}r' ,:ti~
ag:ree~C:::1L
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Title: Vice P~eside:!t. Ooerarions
Title: :li.ce ?:--!s:.denc. G-=~C!=-:!':" :'!.a~ag~=
Dare:
+- 1-99
Date:
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Jb!e.:r: Purchase Agreement Attachment A
STRUCTURAL COMPOSITES INDUSTRIES
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PO.i ,"'greement I ALl 279 I 2:5C7.J2 IE50 C~, In. ((e'/iar. ,850 .:17..1/ S::C~,~C ,"-:C. cO ,
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Har.sco
June 13, 2001
Harseo Corporation
41718 Old GGttySburg Road
~. PA 170SS \JSA
P.O, 60>< 6318
Camp I-Wl, PA. 17001-8316 USA
T~ 717.763.5060
Fax: 717.i31.7Q88
W&b'.. ~.ha<'SCo.com
John MeStraviek, Viee President and General Manager
TYCO/Scott Health & Safety. Scott Technologies, Jne,
309 W. Crowell 51.
Monroe, NC 28110
Dear John,
This letter will selVe to confirm our conversation this afternoon, June 13,2001,
wherein you stated that TYCO/Scott Health &Safety intends to remain on its
current path (with Luxfer), thereby intending to breach the existing agreement
with SCI, Harsco Corporation, dated April 1, 1999, which sets forth certain
exclusivity requirements through the date of April 1. 2003. I can only conclude
that either TYCO/Scott: 1) regards the agreement dated April 1, 1999 as
unenforceable, or 2) believes that Harsco Corporation will not jeopardize any
future business arrangement by enforcing the existing agreement.
Please be advised that Harsco construes the exclusivity requirement of the 1999
agreement as enforceable; accordingly, Harsco will proceed with any and all
necessary legal action to enforce the existing agreement I truly regret that
Harsco Corporation has been placed in the position of seeking legal redress to
enforce the contractual obligations undertaken by Scott prior to the acquisition by
TYCO, Harsco Corporation has fully performed its obligations pursuant to the
April 1, 1999 agreement. There has been no notice from Scott of any failure to
perform under the agreement to this date"
At the request of Scott, prior to the acquisition by TYCO, Harsco submitted bid
quotes as the basis of a potential award of additional business, In the event that
Harscq was awarded that additional business, we were prepared to enter into an
agreement that would replace the 1999 agreement. This bid process in no way
undermined our consistent reference to the requirements of the existing
agreement This understanding has been directly stated by me to Mark Kirk and
by Ron Eickelman to you.
~~
S, V, P,.Operations
** TOTAL PAGE,I2I2 **
* ^ ,
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JUN 15 '01 12:38 FR TAYLOR-WHARTON-GED-EX717 731 7988 TO 92376019
P,02/02
Har.sco
Haraco Cotporat/on
47'8 Old GellySllUrg Rood
Mechenicsburg. PA 17055 us.o.
P.O,Ilo<<83'&
Cernp lim. PA '100' -83'6 USA
'l'!IIophone: 1'1.783.5Ol1O
Fox: 717,73',798$
WOb: WVM'.Nw8co.oom
June 15, 2001
John McStravick, Vice President and General Manager
TYCO/Scott Health & Safety, Scott Technologies, Inc,
309 W, Crowell St.
Monroe, NC 28110
Dear John,
This letter confirms that you informed me that you Intend to breach our exclusive
contract for the supply of certain composite cylinders, Further, you told me that
you intend to take the business away from Harsco and give it to Luxfer despite
the fact that the contract does not expire for two more years,
Harsco Corporation will suffer damages that far exceed the monetary concerns
which are significant in and of themselves. The harm to our business
arrangements and to our reputation, to name a few, are of great concern to
Harsco. Nonetheless, you have apparently made your final decision and we must
go forward from here, My attempts to resolve the intended breach on behalf of
Harsco Corporation have been unsuccessful,
You should contact me directly if you have anything further to report to Harsco,
d)~ri'Y'
~t(~
S, V, p" Operations
** TOTAL PffiE, 02 **
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Cn;:aled: 07/20/0] OI:18:42PM
Re>'ised: 07120/01 01:38:10 PM
105911 '
HARSCO CORPORATION,
Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
v.
NO. 01-3826
CIVIL ACTION-LAW
SCOTT TECHNOLOGIES, INC, and
TYCO INTERNATIONAl (US) INe.,
Defendants
PRAECIPE
TO THE PROTHONOTARY OF CUMBERLAND COUNTY:
Please substitute the attached Verifications for the ones originally filed on July 19, 2001 ,with
Defendants' Response to Plaintiffs Motion for Preliminary Injunction in the above matter.
MARTS ON DEARDORFF WILLIAMS & OTTO
By
Georg B. Faller, Jr.,
I.D, Number 49813
Ten East High Street
Carlisle, P A 17013
(717) 243-3341
Attorneys for Defendants
Dated: July 20,2001
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,
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VERIFICATION
I, John D, McStravick, Vice President & General Manager of Scott Technologies' Health
& Safety Products Group, am authorized to make this verification on behalf of defendant Scott
Technologies and verify that the facts set forth in the foregoing Response to Plaintiffs Motion
for Preliminary Injunction are true and correct to the best of my information, knowledge and
belief,
This verifIcation is made subject to the penalties of 18 Pa, C,S,A, S 4904 relating to
unsworn falsification to authorities,
52f. P#.dP.-d
ohn D, McStravick
Date: '7- /7- CJ/
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VERIFICATION
I, Karl Kinkead, Senior Vice President ofTyco Suppression Systems, am authorized to
make this verification on behalf of defendant Tyco International (US) Inc. and verify that the facts
set forth in the foregoing Response to Plaint~s Motion for Preliminary Injunction are true and
correct to the best of my information, knowledge and belief
This verification is made subject to the penalties of18 Pa. C.S.A. fJ 4904 relating to
unsworn falsification to authorities.
ff#4/
Karl
Date: ,-I}?-j.t1e1.1
".
"
"d
CERTIFICATE OF SERVICE
I, Nichole 1. Myers, an authorized agent of Martson Deardorff Williams & Otto, hereby
certify that a copy of the foregoing Praecipe was served this date by depositing same in the Post
Office at Carlisle, P A, first class mail, postage prepaid, addressed as follows:
Bridget E, Montgomery, Esquire
ECKERT SEAMANS CHERlN & MELLOTT, LLC
213 Market Street, 8th Floor
Harrisburg, PA 17101
MARTSON DEARDORFF WILLIAMS & OTTO
By 0VlcJtwa ~ ~
Nichole 1. Myers
Ten East High Street
Carlisle, P A 17013
(717) 243-3341
Dated: July 20,2001
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Revised; 07120/01 01:31:55 PM
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HARSCO CORPORATION,
Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYL VANIA
v,
NO, 01-3826
CIVIL ACTION-LAW
SCOTT TECHNOLOGIES, INC, and
TYCO INTERNATIONAL (US) INC"
Defendants
PRAECIPE
TO THE PROTHONOTARY OF CUMBERLAND COUNTY:
! Please substitute the attached Verifications for the ones originally filed on July 19, 2001, with
~-~''A.I!swer to Complaint with New Matter on behalf of Defendants in the above matter.
MARTS ON DEARDORFF WILLIAMS & OTTO
By
George B, Faller, Jr., Esq e
I.D. Number 49813
Ten East High Street
Carlisle, P A 17013
(717) 243-3341
Attorneys for Defendants
Dated: July 20,2001
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VERIFICATION
I, John D, McStravick, Vice President & General Manager of Scott Technologies' Health
& Safety Products Group, am authorized to make this verifIcation on behalf of defendant Scott
Technologies and verify that the facts set forth in the foregoing Answer to Complaint with New
Matter are true and correct to the best of my information, knowledge and belief,
This verifIcation is made subject to the penalties of 18 Pa, C,S,A, ~ 4904 relating to
unsworn falsifIcation to authorities,
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ohn D, McStravick
Date: 7- /7-0/
VERIFICATION
I, Karl Kinkead, Senior Vice President of Tyco Suppression Systems, am authorized to
make this verification on behalf of defendant Tyco International (US) Inc. and verify that the facts
set forth in the foregoing Answer to Complaint with New Matter are true and correct to the best
of my information, knowledge and belief
This verification is made subject to the penalties of 18 Pa. C,S.A. A 4904 relating to
unsworn falsification to authorities.
,
Date: j- 1.2 - 0/
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CERTIFICATE OF SERVICE
I, Nichole L. Myers, an authorized agent of Martson Deardorff Williams & Otto, hereby
certify that a copy of the foregoing Praecipe was served this date by depositing same in the Post
Office at Carlisle, P A, first class mail, postage prepaid, addressed as follows:
Bridget E. Montgomery, Esquire
ECKERT SEAMANS CHERlN & MELLOTT, LLC
213 Market Street, 8th Floor
Harrisburg, PA 17101
MARTS ON DEARDORFF WILLIAMS & OTTO
BY~~yer:~
Ten East High Street
Carlisle,PA 17013
(717) 243-3341
Dated: July 20, 2001
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IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
HARSCO CORPORATION,
Plaintiff,
Civil Action No,: 01-3826 Civil Term
v,
SCOTT TECHNOLOGIES, INC, and
TYCO INTERNATIONAL (US) INC,
Defendants,
CERTIFICATE PREREOUISITE TO SERVICE OF A SUBPOENA
PURSUANT TO RULE 4009.22
As a prerequisite to service of a subpoena for documents and things pursuant to Rule
4009,22, Plaintiff, Harsco Corporation, certifies that
1, A notice of intent to serve the subpoena with a copy of the subpoena
attached thereto was mailed or delivered to each party at least twenty days prior to the date on
which the subpoena is sought to be served,
2, A copy of the notice of intent, including the proposed subpoena, is
attached to this certificate,
3, No objection to the subpoena has been received, and
4, The subpoena which will be served is identical to the subpoena which is
attached to the notice of intent to serve the subpoena,
ECKERT SEAMANS CHERlN & MELWTT, LLC
ontgomery, Es
I.D, No, 105
213 Market Street, Eighth Floor
Harrisburg, Pennsylvania 17101
(717) 237-6000
Dated: October 1, 2001 Attorneys for Plaintiff
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CERTIFICATE OF SERVICE
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I certify that on
II ~t71 I served a copy of the foregoing document
/
via D,S, Mail upon counsel for Defendants, addressed as follows:
John G, Harkins, Jr., Esquire
Harkins & Cunningham
Suite 2800, 2005 Market Street
Philadelphia, Pennsylvania 19103
George B. Faller, Jr" Esquire
Martson Deardorff Williams & Otto
Ten East High Street
Carlisle, Pennsylvania 17013
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IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
HARSCO CORPORATION,
Plaintiff,
Civil Action No,; 01-3826 Civil Term
v,
SCOTT TECHNOLOGIES, INC, and
TYCO INTERNATIONAL (US) INC,
Defendants,
ORDER
AND NOW, this II tL day of October 2001, upon consideration of Harsco
Corporations' Petition for the Issuance of a Letter Rogatory, it is hereby ORDERED that the
Petition is GRANTED, The Prothonotary is directed to issue the Letter Rogatory submitted
with the Petition,
BY THE COURT:
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IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
HARSCO CORPORATION,
Plaintiff,
Civil Action No,; 01-3826 Civil Term
v,
SCOTT TECHNOLOGIES, INC, and
TYCO INTERNATIONAL (US) INC,
Defendants,
PLAINTIFF HARSCO CORPORATION'S PETITION
FOR THE ISSUANCE OF A LETTER ROGATORY
Plaintiff, Harsco Corporation ("Harsco"), by its attorneys, Eckert Seamans Cherin &
Mellott, LLC, hereby petitions this Court pursuant to Pa, R.C,P. 4015(b) and 42 Pa, C,S,A, S
5325 for the issuance of a Letter Rogatory:
I, Harsco desires to production of documents and things pursuant to a subpoena
from Luxfer Gas Cylinders (USA), a corporation located at 3016 Kansas Avenue, Riverside,
California, 92507,
2, Attached hereto as Exhibit A is a copy of the proposed subpoena directed to
Luxfer, along with a description of the categories of documents and things to be produced, The
subpoena complies with the notice requirements ofPa, R.C,P, 4009,21. A copy of the CertifIcate
Prerequisite to Service of a Subpoena is attached hereto as Exhibit B.
3, In order for Harsco to obtain the documents and things from Luxfer pursuant to
the subpoena, a Letter Rogatory should be issued to the appropriate authority in California,
4, A proposed Order and a proposed Letter Rogatory is attached,
-
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WHEREFORE, plaintiff Harsco Corporation respectfully requests that this Court
authorize the issuance of a Letter Rogatory to the appropriate authority in California to compel
the production of documents and things from Luxfer Gas Cylinders (USA) in the above-
captioned action,
Respectfully submitted,
ECKERT SEAMANS CHERIN & MELLOTT, LLC
Date: !O/II/f}OO (
ri et E, ontgomery, Esq,
,No, 56105
Mark E, Gebauer, Esq,
I.D, No, 79646
213 Market Street
8th Floor
Harrisburg, P A 17101
717,237,6000
Attorneys for Plaintiff Harsco Corporation
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CERTIFICATE OF SERVICE
I certify that on ()(~b& 1/ ,f)cJC/ , I served a copy ofHarsco's Petition for
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Issuance of a Letter Rogatory via U.S, Mail upon counsel for Defendants, addressed as follows:
John G. Harkins, JI., Esquire
Harkins & Cunningham
Suite 2800, 2005 Market Street
Philadelphia, Pennsylvania 19103
George B. Faller, Jr" Esquire
Martson Deardorff Williams & Otto
Ten East High Street
Carlisle, Pennsylvania 17013
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IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY
,
PENNSYLVANIA
HARSCO CORPORATION,
Plaintiff,
Civil Action No,: 01-3826 Civil Term
v,
SCOTT TECHNOLOGIES, INC, and
Tyeo INTERNATIONAL LTD,
Defendants,
HARSCO CORPORATION'S RESPONSE TO NEW MATTER
For its Response to the New Matter of Defendants, Harsco Corporation, by its counsel,
Eckert Seamans Cherin & Mellott, LLC, states:
52, Paragraph 52 states a conclusion of law to which no response is required, and,
accordingly, it is deemed denied,
53, Paragraph 53 states a conclusion of law to which no response is required, and,
accordingly, it is deemed denied,
54, Paragraph 54 states a conclusion of law to which no response is required, and,
accordingly, it is deemed denied,
55, Paragraph 55 states a conclusion of law to which no response is required, and,
accordingly, it is deemed denied,
56, Paragraph 56 states a conclusion of law to which no response is required, and,
accordingly, it is deemed denied,
{L0241117.1 }
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57, Paragraph 57 states a conclusion of law to which no response is required, and,
accordingly, it is deemed denied,
58, Paragraph 58 states a conclusion of law to which no response is required, and,
accordingly, it is deemed denied,
WHEREFORE, Harsco Corporation respectfully requests that this Court enter
judgement in its favor in this matter as set forth in the Complaint and Motion for Preliminary
Injunction,
Respectfully submitted,
BY:?!!:~~~ ~-:f~~-
Bridget E, ntgomery, Esqu
Supreme Court I.D, # 56105
Mark E, Gebauer, Esquire
Supreme Court I.D, # 79646
213 Market Street
Harrisburg, PA 17101
717,237,6000
Dated: August 8, 2001
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CERTIFICATE OF SERVICE
I, Bridget E, Montgomery, Esquire, certify that I served a copy of the Harsco
Corporation's Response to New Matter via U,S, Mail upon counsel for Defendants, addressed
as follows:
John G, Harkins, Jr., Esquire
Harkins & Cunningham
Suite 2800, 2005 Market Street
Philadelphia, Pennsylvania 19103
George B. Faller, Jr., Esquire
Martson Deardorff Williams & Otto
Ten East High Street
Carlisle, Pennsylvania 17013
Dated: August 8, 2001
~r~-
ridget E, ontgo ery, Esq re
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HARSCO CORPORATION,
Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYL VANIA
v,
CIVIL ACTION - LAW
SCOTT TECHNOLOGIES,
INC" and TYCO
INlERNATIONAL, LID"
Defendants
NO, 01-3826 CIVIL lERM
ORDER OF COURT
AND NOW, this 27th day of August, 2001, upon consideration of the attached
letter from Bridget E, Montgomery, Esq" attorney for Plaintiff, the hearing previously
scheduled for August 17,2001, is rescheduled to Wednesday, November 28,2001, and
Thursday, November 29,2001, commencing each day at 9:30 a,m" in Courtroom No, 1,
Cumberland County Courthouse, Carlisle, Permsylvania,
BY THE COURT,
Bridget E, Montgomery, Esq,
213 Market Street
Eighth Floor
Harrisburg, PA 17101
Attorney for Plaintiff
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John G, Harkins, Jr" Esq,
Suite 2800
2005 Market Street
Philadelphia, PA 19103
Attorney for Defendant
Scott Technologies, Inc,
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Mark Belnick, Esq,
Tyco International Ltd,
9 West 57th Street, 43rd Floor
New York, NY 10019
Attorney for Defendant
Tyco International, Ltd,
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213 Market Street
Eighth Floor
Hardsburg, PA 17101
Address correspondence to:
Post Office Box 1248
HarrisbU1g, PA 17108-1248
Telephone: 717.237,6000
Facsimile: 717.237.6019
www.escm.com
Boston
Fort Lauderdale
Haddonfield, NJ
Harrisburg
Philadelphia
Pittsburgh
Washington, D. C.
ECKERT SEAMANS
ATTORNEYS AT LAW
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ECKERT SEAMANS CHERIN & MELLOTT, LLC
August 24, 2001
The Honorable J, Wesley Oler, Jr.
Cumberland County Court of Common Pleas
One Courthouse Square
Carlisle, PA 17013-387
Attention: Ruth Coulson
Re:
Harsco Corporation v, Tyco International (US), Jnc,
Civil Action No,: 01-3826 Civil Term
Dear Ms, Coulson:
This will confirm our conversation today, in which J informed you that
November 28'" and 29th are dates that all parties agreed are suitable for a hearing
in this matter in the event that it does not settle, As we discussed, J asked that
both dates be held in the event that the hearing cannot be completed in one day,
Thank you for your courtesy and cooperation,
Very truly yours,
[,
BEM,jah
cc: John G, Harkins, Jr., Esquire
AUG 2
l 2001
{L0241753.1 }
Bridget E. Montgomery
717,237.6054
bxm@escm.com
"
,
HARSCO CORPORATION,
Plaintiff
v,
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYL VANIA
CIVIL ACTION - LAW
SCOTT TECHNOLOGIES,
INC" and TYCO
INTERNATIONAL, LTD"
Defendants
NO, 01-3826 CIVIL TERM
ORDER OF COURT
AND NOW, this 15th day of October, 2001, upon consideration of Plaintiffs
Motion for Status Conference and for Scheduling Order, a Rule is hereby issued upon
Defendants to show cause why the relief requested should not be granted,
RULE RETURNABLE within 15 days of service,
BY THE COURT,
Bridget E, Montgomery, Esq,
213 Market Street
Eighth Floor
Harrisburg, PA 17101
Attorney for Plaintiff
John G, Harkins, Jr" Esq,
Suite 2800
2005 Market Street
Philadelphia, PA 19103
Attorney for Defendant
Scott Technologies, Inc,
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Attorney for Defendants
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OCT~OO1
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IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
HARSCO CORPORATION,
Plaintiff,
Civil Action No,: 01-3826 Civil Term
v,
SCOTT TECHNOLOGIES, INC. and
TYCO INTERNATIONAL (US) INC,
Defendants,
ORDER
AND NOW, upon consideration of Harsco's Motion for Discovery and Trial
Scheduling Order, IT IS HEREBY ORDERED that the Motion is GRANTED, The parties
shall exchange discovery and conduct all depositions by November 15, 2001, and the hearing
on the merits of Harsco Corporation's claims shall be held on November 28 and 29,2001, and
shall be continued as may be necessary, A status conference will be conducted on
,2001, at_ ,m,
Oler, J,
{L0242572.! }
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IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
HARSCO CORPORATION,
Plaintiff,
Civil Action No,: 01-3826 Civil Term
v,
SCOTT TECHNOLOGIES, INC, and
TYCO INTERNATIONAL (US) INC,
Defendants,
MOTION FOR STATUS CONFERENCE AND FOR SCHEDULING ORDER
AND NOW, Harsco Corporation, by and through its counsel, Eckert Seamans Cherin
& Mellott, LLC, hereby moves this Court for a status conference 'and for an order scheduling
discovery and a hearing in this matter, and states the following in support thereof:
1. On or about June 26,2001, Harsco Corporation ("Harsco") initiated the
captioned action against Scott Technologies, Inc, ("Scott") and Tyco International (US) Inc,
("Tyco,,)l, arising out of Scott's alleged breach of an exclusive purchasing agreement, For the
convenience of the Court, a copy of the Complaint and exhibits thereto is attached to this
Motion as Exhibit A,
2, In addition to other relief, Harsco requested preliminary injunctive relief
and the Court scheduled a preliminary injunction hearing for August 17, 2001.
1 Initially, Harsco had named a different Tyco entity but by Stipulation dated July 19, 2001, requested that the
caption be amended to name Tyco International (US) Inc,
{L0242572.1}
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3. By agreement of the parties, Harsco requested that the Court vacate the
August 17, 2001, hearing date because the parties had agreed to stay litigation and utiliz.e a 90-
day period to attempt to reach a business resolution of their dispute. Accordingly, the Court
rescheduled the hearing to November 28 and 29,2001, in the event that the parties were
unable to reach a business resolution of their dispute.
4. Harsco has determined that Scott and Tyco are not genuinely interested
in reaching a business solution but, rather, are utilizing the 90-day period to buy time to "build
a case" against Harsco rather than make a good-faith attempt to identify problems in the
parties' business relationship and allow Harsco to correct any actual problems.
5. Harsco now believes that it is in the best interest of all parties to engage
in discovery and to utilize the November 28 and 29,2001 scheduled hearing dates for a
hearing on the parties' rights and obligations under the exclusive purchasing agreement, and
any breaches and any and all relief appropriate as of the date of the hearing. Harsco believes
that the information pertinent to the parties' contractual rights and obligations and existence of
any breaches to date can be obtained through relatively limited discovery, provided all parties
engage in good-faith, non-obstructive discovery conduct.
6. Harsco, therefore, requests that this Court issue an order requiring the
parties to complete discovery by November 15, 2001, and converting the November 28 29,
2001 hearing to one for a declaration of the parties' rights and obligations under the exclusive
purchasing agreement, and of any breaches and relief appropriate as of the date of the hearing.
Harsco further requests a status conference so that the parties may discuss with the Court the
expedited treatment requested herein.
{L0242572.1}
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7. Harsco is available for a conference with the Court at the Court's
convenience, and if so directed will contact counsel for Scott and Tyco to arrange such a
conference.
WHEREFORE, Harsco Corporation respectfully requests that this Court issue
ail order directing that the parties engage in expedited discovery from now until November 15,
2001, and converting the hearing for November 28,29,2001, to one for a declaration of the
parties' rights and obligations under the exclusive purchasing agreement, and of any breaches
and relief appropriate as of the date of the hearing. Harsco Corporation further requests the
Court to schedule a telephone or in-person status conference to discuss the expedited treatment
requested herein.
Respectfully submitted,
ECKERT SEAMANS CHERlN & MELLOTT, LLC
E. Montgome
I.D. . 56105
Mark E. Gebauer, Esquire
I.D. No. 79646
213 Market Street
Eighth Floor
Harrisburg, Pennsylvania 17101
(717) 237-6000
Dated: October 9, 2001
Attorneys for Plaintiff
{L0242572.1}
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IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
HARSCO CORPORATION,
Plaintiff,
Civil Action No.: 01-3826 Civil Term
Y.
SCOTT TECHNOLOGIES, INC, and
TYCO INTERNATIONAL LTD.
Defendants.
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NOTICE TO DEFEND
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You have been sued in court. If you wish to defend against the claims set forth in the
following pages, you must take action within twenty (20) days after this complaint and notice
are served, by entering a written appearance personally or by attorney and filing in writing
with the court your defenses or objections to the claims set forth against you. You are warned
that if you fail to do so the case may proceed without you and a judgment may be entered
against you by the court without further notice for any money claimed in the complaint or for
any other claim or relief requested by the plaintiff. You may lose money or property or other
rights important to you.
YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF
YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR
TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN
GET LEGAL HELP.
Lawyers Reference Service
Cumberland County Bar Association
2 Liberty Avenue
Carlisle, PA 17013
800-990-9108
TRUE COPY FROM RECORD
In Testimony wl1ereof, I here unro set my hand
and the seal aI said ~r1lsle. Pa.
This :J. ~~ .2w1
J-J. I . ~J~:'. .~-~
Prothonotary
{L0239700.1}
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IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
HARSCO CORPORATION,
Plaintiff,
Civil Action No.: 01-3826 Civil Term
v.
SCOTT TECHNOLOGIES, INC. and
TYCO INTERNATIONAL LTD,
Defendants.
NOTICIA
Le han demandado a usted en la corte. Si usted quiere defenderse de estas.demandas
. expuestas en las paginas siguientes, usted tiene viente (20) dias de plazo al partir de la fecha de
la demanda y la notificacion. Usted debe presentaruna apariencia escrita 0 en persona 0 por
abogado y archivar en la corte en forma escrita sus defensas 0 sus objeCiones alas demandas
en contra de su persona. Sea avisado que si usted no se defiende, la corte tomara medidas y
puede entrar nna orden contra usted sin previo aviso 0 notificacion y por cualquier queja 0
alivio que es pedido en la peticion de demanda. Usted puede perder dinero 0 sus propiedades
o otros derechos importantes para usted.
LLEVE ESTA DEMANDA A UN ABODAGO lMMEDlATAMENTE. SI NO TIENE
ABOGADO 0 SI NO TIENE EL DINERO SUFlCIENTE DE PAGAR TAL SERVICIO,
VA Y A EN PERSONA 0 LLAME POR TELEFONO A LA OFlCINA CUY A DlRECCION
SE ENCUENTRA ESCRlT A ABAJO PARA A VERlGUAR DONDE SE PUEDE
CONSEGUlR ASISTENCIA LEGAL.
Lawyers Reference Service
Cumberland Connty Bar Association
Carlisle, PA 17013
800-990-9108
{L0239700.1}
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IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY,
PENNSYLVANIA
HARSCO CORPORATION,
Plaintiff,
Civil Action No.: 01-3826 Civil Term
v.
SCOTT TECHNOLOGIES, INC. and
TYCO INTERNATIONAL LTD,
Defendants,
COMPLAINT
AND NOW, Plaintiff, Harsco Corporation by and through its counsel Eckert
Seamans Cherin & Mellott, LLC, files this Complaint in Breach of Contract and
Interference with Contractual Relations against Defendants, Scott Technologies, Inc.
and Tyco International Ltd., seeking preliminary and permanent injunctive relief and
damages, arising from Scott Technologies, Inc. 's wrongful repudiation of a four year
exclusive requirements Purchase Agreement for the purchase of certain composite
cylinders from Harsco Corporation, and in support thereof states as follows:
PARTIES
1. Plaintiff Harsco Corporation ("Harsco") is a corporation organized and
operating nnder the laws of the State of Delaware, with its principal place of business
in Cumberland Connty, Pennsylvania.
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2. Defendant Scott Technologies, Inc. ("Scott") is a Delaware corporation,
which is registered to conduct business in the Commonwealth of Pennsylvania, and has
a principal place of business in Ohio, and other facilities in New York and North
Carolina.
3. Scott maintains business divisions referred to as Scott Health & Safety
(which manufactures and supplies self-contained breathing apparatus) and Scott
Aviation (which manufactures and supplies commercial aviation oxygen systems).
4. Defendant Tyco International Limited ("Tyco") is a corporation
organized under the laws of Bermuda and/or the State of Massachusetts, with a place of
business and service address at One Tyco Park, Exeter, New Hampshire, 03833.
5. On information and belief, Tyco recently acquired Scott, including the
Scott Health & Safety and Aviation divisions.
JURISDICTION AND VENUE
6. This action for equitable relief and damages is between parties subject to
this Court's jurisdiction, and the damages sought are in excess of the arbitration limits
of the Court,
7. Venue is proper in this Court pursuant to Pennsylvania Rule of Civil
Procedure 2179, in that Scott regularly conducts business in Cumberland County, and a
transaction or occurrence took place in Cumberland County out of which the cause of
action arose.
L0239603
2
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FACTUAL BACKGROUND
8. Harsco is a single corporate entity with several major business segments,
one of which is the Gas and Fluid Control Group, which is headquartered at 4718 Old
Gettysburg Road, Mechanicsburg, Pennsylvania 17055.
9, A manufacturing unit of the Harsco Gas and Fluid Control Group,
Structural Composite Industries, manufactures high-pressure composite cylinders for
use in, among other products, self-contained breathing apparatus and commercial
aviation oxygen systems.
10. Scott designs and manufactures, among other products, self-contained
breathing apparatus used in the frrefighting industry, and commercial aviation oxygen
systems, into which high-pressure composite cylinders are incorporated.
11. On or about April 1, 1999, prior to Tyco's acquisition of Scott, Scott
entered into an exclusive, four-year Purchase Agreement with Harsco, pursuant to
which Harsco agreed to supply, and Scott agreed to purchase exclusively from Harsco,
all of Scott's requirements of certain composite cylinders as specified by Scott, A copy
of the exclusive Purchase Agreement with list of moqels, part numbers, and prices is
attached hereto as Exhibit" A", in accordance with Pa. R. Civ, p, 1019(i).
12. In consideration of Scott's promise under the Purchase Agreement to
purchase from Harsco all of its requirements of certain cylinders for a period of four
years, Harsco agreed to provide the cylinders at reduced prices.
13. Under the terms of the Purchase Agreement, Scott is prohibited from
purchasing any of the cylinders specified in the Purchase Agreement from any source
1.0239603
3
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other than Harsco unless Harsco is unable to satisfy a particular order and is unable to
provide a reasonable plan of recovery related to such order, in which case Scott may
purchase from an alternative source only the type and quantity of cylinders that Harsco
is unable to supply.
14. From April 1, 1999, to the present, Harsco has substantially and
satisfactorily performed all of its obligations under the Purchase Agreement, and has
provided Scott the cylinders it has ordered, at the reduced prices agreed upon in
consideration of Scott's promise to exclusively purchase from Harsco all composite
cylinders covered by the Purchase Agreement.
15. Scott has paid consistently for the cylinders delivered by Harsco, thereby
acknowledging that Harsco has produced commercially acceptable products in
fulfillment of Harsco' s obligations under the Purchase Agreement.
16. Harsco's performance, including the quality, quantity, and delivery of
the cylinders delivered to Scott, satisfied Scott to such a degree that prior to Tyco's
acquisition of Scott, Scott negotiated with Harsco to expand the models and quantities
of cylinders exclusively supplied by Harsco but, upon information and belief, Tyco
demanded that said negotiations come to a halt at or about the time of its acquisition of
Scott.
17, In or about May 2001, Tyco acquired Scott Technologies, Inc., and its
divisions, including Scott Health & Safety and Scott Aviation, and on information and
belief, Tyco has or will soon integrate Scott into the segment of Tyco's business known
as Tyco Fire and Security Services,
L0239603
4
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.
18. On information and belief, as a result ofTyco's acquisition of Scott,
Scott's business activities, including the performance of Scott's obligation to purchase
its composite cylinder requirements exclusively from Harsco, are subject to the
direction and control of Tyco.
19. Despite Harsco's satisfactory performance under the Purchase
Agreement, Scott recently informed Harsco that Scott intends to purchase the cylinders
covered by the Purchase Agreement from another manufacturer, which on information
and belief is a competitor in the composite cylinder manufacturing industry, Luxfer,
Inc.
20. Harsco sought from Scott adequate assurances that Scott would continue
to perform its obligations under the Purchase Agreement, but Scott has refused to
supply such assurances.
21. Through written correspondence, Harsco recently confirmed its
understanding that Scott had repudiated the Purchase Agreement, which correspondence
Scott has failed to negate or otherwise answer, verbally or in writing. A copy of
Harsco's correspondence is attached hereto as Exhibit "B.
22. From the time of Scott's recent indications that it intended to purchase
composite cylinders covered by the Purchase Agreement from another manufacturer, to
the present, the volume of orders received from Scott for such composite cylinders has
declined, thereby confirming its intentions to repudiate the Purchase Agreement.
23. As a result of the decline in orders from Scott for composite cylinders
covered by the Purchase Agreement, Harsco has determined that it will have to layoff
l1l239603
5
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skilled production workers and, further, that recent organizational actions taken by
Harsco in the belief that the Purchase Agreement would be honored now will result in
harm to production and employee arrangements.
24. Scott's repudiation and breach of the Purchase Agreement is wrongful,
without justification, and will cause great harm to Harsco,
25. All conditions precedent to Harsco' s right to seek relief have been
performed or have otherwise occurred.
Count I - Breach of Contract
(Harsco v. Scott)
26. Paragraphs 1 through 25, above, are incorporated herein by reference in
their entireties, and are made a material part of this Count I.
27. Harsco and Scott entered into a valid and enforceable contract whereby
Scott agreed to, among other things, exclusively purchase all of is requirements for
specified composite cylinders from Harsco. See Exhibit A, attached hereto.
28. In consideration of Scott's promise to purchase such cylinders
exclusively from Harsco and the payment of Scott for the purchased cylinders, Harsco
agreed to satisfy Scott's cylinder requirements at a reduced price per cylinder.
29. Harsco and Scott performed under the Purchase Agreement for more
than two years, from the April 1, 1999 date of execution until Scott's recent repudiation
of the Agreement.
L0239603
6
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30, Harsco has substantially complied with aU of its obligations under the
Purchase Agreement and has faithfully supplied, at reduced prices, cylinders to meet
Scott's requirements.
31. No event has occurred that would permit Scott to purchase a type of
cylinder covered by the Purchase Agreement from any source other than Harsco.
32. In breach of its obligations under the Purchase Agreement, including but
not limited to the duty of good faith and fair dealing, Scott has wrongfully and without
justification decided to purchase cylinders covered by the Purchase Agreement from a
source other than Harsco,
33. Harsco has sought from Scott adequate assurances of continued
performance under the Purchase Agreement, which assurances Scott has failed to
provide.
34. Harsco has urged Scott to retract its repudiation of the Purchase
Agreement, but Scott has wrongfully failed to do so.
35. All conditions precedent have been performed or have otherwise
occurred.
36. Based upon the quantities and prices of orders placed by Scott from
April 1 , 1999 to its recent repudiation of the exclusive Purchase Agreement, Harsco
estimates that it will lose approximately $10 million ($10,000,00.00) as a result of
Scott's breach.
37. In addition to the monetary losses that Harsco will suffer as a result of
Scott's breach, if Scott is not preliminarily and permanently enjoined from any further
L02~9603
7
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breach of the exclusive Purchase Agreement, Harsco will suffer inunediate and
irreparable harm, including but not limited to harm to its business reputation, business
structures and operations, workforce, production efficiency, and reputation in the
investment community.
38. The inunediate and irreparable harm to Harsco cannot be avoided by any
other means than preliminarily and permanently enjoining Scott from breaching the
exclusive Purchase Agreement pending the outcome of a final hearing on the merits.
39. The threatened harm to Harsco outweighs any possible harm to Scott
from the issuance of a preliminary and permanent injunction because Harsco is capable
of and is willing to perform its contractual obligations under the Purchase Agreement.
40. Under the circumstances, any bond required for the issuance of a
preliminary injunction should be waived or be minimal because Scott has an existing
obligation to perform the Purchase Agreement, and its purchase of cylinders from
Harsco as promised presents no detriment to Scott.
Wherefore, Harsco Corporation respectfully requests that this Court enter
Orders:
(a) Preliminarily and permanently enjoiuing Scott Technologies, Inc. and its
officers, directors, employees, and agents from directly or indirectly
breaching the exclusive four-year Purchase Agreement with Harsco
Corporation;
Directing Scott Technologies, Inc. to comply with all of its obligations
under the Purchase Agreement for the duration of the Agreement;
(b)
L0239603
8
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(c) Precluding Scott Technologies, hie. from procuring any cylinders and/or
types of cylinders covered by the Purchase Agreement from any source
other than Harsco;
(d) Directing Scott Technologies, Inc. to provide to Harsco a periodic
accounting of its requirements for and purchase of the cylinders and/or
types of cylinders covered by the Purchase Agreement, and further
directing Scott to certify to the Court subject to the penalties of civil and
criminal contempt that its is satisfying those requirements by purchasing
exclusively from Harsco pursuant to the Purchase Agreement;
(e) Awarding Harsco all damages, fees, and costs incurred as a result of
Scott Technologies, Inc.'s breach of the Purchase Agreement; and
(f) A warding such further relief as the Court deems just and appropriate,
Count II - Interference with Contractual Relations
(Harsco v. Tyco)
41. Paragraphs 1 though 40, above, are incorporated herein by reference in
their entireties, and are made a material part of this Count 11,
42. The Purchase Agreement constitutes a valid and enforceable contract
between Harsco and Scott.
43. In or about May 2001, Tyco acquired Scott Technologies, Inc., and its
divisions, including Scott Health & Safety and Scott Aviation, and on information and
belief, Tyco has or will soon integrate Scott into the segment of Tyco's business known
as Tyco Fire and Security Services.
L0239603
9
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44. On information and belief, as a result ofTyco's acquisition of Scott,
Scott's business activities, including the performance of Scott's obligation to purchase
its composite cylinder requirements exclusively from Harsco, are subject to the
direction and control of Tyco.
45. At all relevant times, Tyco was aware of the contractual relations and
obligations existing between Harsco and Scott.
46. Upon information and belief, at or about the time of Tyco's acquisition
of Scott, Tyco directed that Scott cease negotiations with Harsco for an expansion of
the exclusive requirements dealings between Harsco and Scott.
47. Upon information and belief, at or about the time of Tyco's acquisition
of Scott, Tyco intentionally and improperly interfered with the contractual relations
between Scott and Harsco by instructing, inducing, or otherwise causing Scott to breach
the existing and valid exclusive Purchase Agreement with Harsco.
48. On information and belief, Tyco is seeking to acquire a financial interest
in a company that supplies composite cylinders and thus, it is in Tyco's financial
interest to cause Scott (now owned by Tyco) to buy cylinders from this competitor of
Harsco.
49. Tyco's wrongful acts were unprivileged and improper and were not
taken to protect legitimate business concerns.
50. Tyco's wrongful acts were intentional and outrageous, taken to further
its own pecuniary interests, with wanton disregard for the interests and rights of
L0239603
10
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Harsco, and without due regard for the contractual obligations Scott was obligated to
perform.
51. As a direct and proximate result of Tyco's wrongful acts, Harsco has
suffered and will continue to suffer monetary losses, and is entitled to preliminary and
permanent injunctive relief, for the reasons set forth more fully in Paragraphs 23 and
36 through 40, above, which are incorporated herein by reference in their entireties.
Wherefore, Harsco Corporation respectfully requests that this Court enter
Orders:
(a) Preliminarily and permanently enjoining Tyco International Ltd., and its
officers, directors, employees, and agents from directly or indirectly
inducing or otherwise causing Scott to breach any of its obligations
under the exclusive Purchase Agreement with Harsco Corporation or
otherwise interfering with Scott's performance of its obligations under
the exclusive Purchase Agreement;
(b) Directing Tyco International Ltd. to comply with any and all obligations
that the law would impose upon it in relation to the exclusive Purchase
Agreement;
(c) To the extent that such matters are now or in the future may come within
Tyco's control, directing Tyco to provide a periodic accounting of
Scott's requirements for and purchases of cylinders and/or types of
cylinders covered by the Purchase Agreement, and certifying to the
Court subject to the penalties of civil and criminal contempt that Scott is
L023l)(j()3
11
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satisfying those requirements by purchasing exclusively from Harsco
pursuant to the Purchase Agreement;
(d) Awarding Harsco all damages, fees, and costs incurred as a result of
Tyco's wrongful actions; and
(e) A warding such further relief as the Court deems just and appropriate.
WHEREFORE Harsco Corporation prays for judgment in its favor in this
action, and for an Order from the Court as follows:
(a) Declaring Scott Technologies, Inc. to be in breach of its obligations
under the Purchase Agreement;
(b) Declaring Tyco International, Ltd. liable for interfering with the
contractual relations between Harsco Corporation and Scott
Technologies, Inc;
(c) A warding Harsco all of the injunctive and other equitable relief
requested under Counts One and Two in this action;
(d) Awarding Harsco damages caused by the conduct complained of under
Counts One and Two in this action;
(e) Awarding Harsco its costs of suit and fees incurred;
(f) Awarding Harsco punitive and/or exemplary damages to the extent
allowed by applicable law; and
L0239603
12
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(g) A warding Harsco such further relief as the Court deems just and
appropriate.
DATED: ~-Q~-Dl
L023%03
Respectfully submitted,
ECKERT SEAMANS CHERIN & MELLOTT, LLC
Bridget , ontgomery, Esq
Supreme Ct. I.D. #56105
One South Market Square Building
213 Market Street
Harrisburg, PA 17101
(717) 237-6000
13
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VERIFICATION
I, ~""'-'\~ \.,), \~p\"..., am theSe.V. p. of of Harsco Corporation, Inc. I
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hereby verify on behalf of Harsco Corporation that all of the averments of fact
contained in the foregoing document are true and correct to the best of my knowledge,
information and belief. 1 understand that false statements herein are made subject to the
penalties of 18 Pa. C.S.A. ~4904, relating to unsworn falsification to authorities.
----------
{L0239681.1 }
4:
PCRCHASE AGREEl\IlENT
It has been agreed by Scon Aviation and SCI to enter into a supply agreement for
cylinders for a period of four (~) years. Scon agrees to buy exclusively, and SCI agrees
to furnish the cylinders which ",ill be the models and parr numbers curre:ltJy being
purchased on Blanket Order :--;umbers as lisled on the anached matrix. The quanlities
shown on these orders ",iil be the basis for e:lch of the four (4) year periods. Score
reserves me right to place orders for the same type or' cylinder from orhe c:-'!inde
manur";}c:urers if SCl tillls 1O perform per me requirements of rhe dr:lwing spec:ric:lricG .Jr
the promised delivery dare. and c:umot provide Scan wirh .l re:lScnable recave:-:, pian '0
meet produdon or customer requireme:lrs. Scan ",ill procure ,he quanri,; or" <~jjnde~s
needed tar mat requirement from other qualiiied sources.
The prices for rhese cylinders will be sho\',n on me bianket orcers. :1m] '.vi:! se ,1=
through ;he year :000, The :Jtice for eacl1 cylinder mode: :nay be :nc:e:l5e:1 jv : 0',. :n :h"
year 2001. no,. in :00: and re':ie',ved :lgain in :003 ;or ~)[:ce .ldjustme:us base:::: Jr.2ur:-e:-c:
economic condirions at chat :ime. All c::linders will be produced ;n :lccorcanc".v;th :he
dr~\\iing J-nG sFc:.::iic.:ltions ~ro",-ided ~y Searl. PJ.ymc:u ~e:7!1.s or" Jc:~?r2iJic ?rocl.:c~ <,vid
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agree:n~:1f_
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Date: ~-1-9Q
Date: ~-l-~9
.
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Har.sco
June 13, 2001
H.arsco Co~n
4718 Old GH~ Road
~.PA 17055 USA
P.O.Ilo>c(J316
Camo t'iII, PA 17001-8316 USA
T.".."..",., 711.763.SOSO
F~: 717.1'31_7968
W.rr.. WWW.NrKo.ctrn
.
John McStravick, Vice President and General Manager
TYeo/scott Health & Safety, Scott Technologies, Inc.
309 W Crowell St.
Monroe, NC 28110
Dear John,
This letter will selVe to confirm our conversation this afternoon, June 13,2001,
wherein you stated that TYeo/scott Health &Safety intends to remain on its
current path (with Luxfer), thereby intending to breach the existing agreement
with SCI. Harseo Corporation, dated April 1 , 1999, whieh sets forth certain
exclusivity requirements through the date of April 1, 2003. I can only conclude
that either TYCO/Scott; 1) regards the agreement dated April 1, 1999 as
unenforceable, or 2) believes that Harsco Corporation will not jeopardize any
future business arrangement by enforcing the existing agreement
Please be advised that Harsco construes the exclusivity requirement of the 1999
agreement as enforceable; accordingly, Harsco will proceed with any and all
necessary legal action to enforce the existing agreement I truly regret that
Harsco Corporation has been placed in the position of seeking legal redress to
enforce the contractual obligations undertaken by Scott prior to the acquisition by
TYCO. Harsco Corporation has fully performed its obligations pursuant to the
April 1. 1999 agreement. There has been no notice from Scott of any failure to
perform under the agreement to this date.
At the request of Scott, prior to the acquisition by TYCO, Harseo submitted bid
quotes as the basis of a potential award of additional business. In the event that
Harscq was awarded that additional business, we were prepared to enter into an
agreement that would replace the 1999 agreement This bid process in no way
undermined our consistent reference to the requirements of the existing
agreement This understanding nas been directly stated by me to Mark Kirk and
by Ron Eickelman to you.
~~
S, V. P.,Operations
** TOTAL PR:iE .02 **
"
~ I _ ~
~--- = . ji,j,
-JUN 15 '01 12:38 FR TAYl~n~WHARTON-GED-EX717 731 7988 TO 92376019
P.02/02
.
.
Har.sco
Hanoco CorpoI8tlon
4718 Old GtIIySllllO Roa<l
~ PA 170SS us;.
PO, eox &3'&
Comp HII, PA 17001.e3'8l.lSA
T/lIophono; 717,7&3.50&0
Fa><: 717.731.7988
'Nab; www.hdtaco.oom
June 15, 2001
John McStravick, Vice President and General Manager
TYeo/scott Health & Safety, Scott Technologies, Inc.
309 W. Crowell St.
Monroe, NC 28110
Dear John,
This letter confirms that you informed me that you Intend to breach our exclusive
contract for the supply of certain composite cylinders. Further, you told me that
you intend to take the business away from Harsco and give it to Luxfer despite
the fact that the contract does not expire for two more years.
Harsco Corporation will suffer damages that far exceed the monetary concerns
which are significant in and of themselves. The harm to our business
arrangements and to our reputation, to name a few, are of great concern to
Harsco. Nonetheless, you have apparently made your final decision and we must
go forward from here, My attempts to resolve the intended breach on behalf of
Harsee Corporation have been unsuccessful.
Yoil should contact me directly If you have anything further to report to Harsco.
J)~r;IY,
~~~
s. V. P., Operations
** TOTF'L Pl={;E. 02 **
~~
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.
CERTIFICATE OF SERVICE
I, Bridget E, Montgomery, Esquire, certify that I served a copy of the foregoing
document via U.S. Mail upon counsel for Defendants, addressed as follows:
John G. Harkins, Jr., Esquire
Harkins & Cunningham
Suite 2800, 2005 Market Street
Philadelphia, Pennsylvania 19103
George B. Faller, Jr., Esquire
Martson Deardorff Williams & Otto
Ten East High Street
Carlisle, Pennsylvania 17013
Dated: October 9, 2001
Bridget E. Montgomery, Esqu' e
{L0242572.1}
4
. " .. . .wo_' ~ ,., ,-~' " iM~~
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
HARSCO CORPORATION,
Plaintiff,
Civil Action No.: 01-3826 Civil Term
v.
SCOTT TECHNOLOGIES, INC. and
TYCO INTERNATIONAL (US) INC.
Defendants.
ORDER
AND NOW, this ~ ~ay of October 2001, upon consideration of Harsco
Corporations' Petition for the Issuance of Letters Rogatory, it is hereby ORDERED that the
Petition is GRANTED. The Prothonotary is directed to issue Letters Rogatory submitted with
the Petition.
BY THE COURT:
Cory PenOllQ/~ 3'''€-V1f6/o11 {!h/IY/t{
CO!,' /fIa.lledto Jdhl7 G, //tu-k ~
(I J .j J f'". rt;Je 8i4lkr
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-, .~ '''''n'n '~I "~tARY
! -~I'- ':,,'1-.'; l,r1:: \1]; .
. __ '_, I ,,', ,~, ~'J
Oi OCT 15 ArHI:45
CUMBERU~\jD COUNTY
PENNSYLVANIA
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illllIl2'_,'l'\!l__~~~_?Jll""~",i-"'""""j']""""<"'-"C;'l'''-V.1;i",~~~$;!lIJi!!l~~ll~I!l!~:~V"'1:'l$(~~
- .-~- ~ ' ,~ - """'1
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
HARSCO CORPORATION,
Plaintiff,
Civil Action No.: 01-3826 Civil Term
v.
SCOTT TECHNOLOGIES, INC. and
TYCO INTERNATIONAL (US) INC.
Defendants.
PLAINTIFF HARSCO CORPORATION'S PETITION
FOR THE ISSUANCE OF LETTERS ROGATORY
Plaintiff, Harsco Corporation ("Harsco"), by its attorneys, Eckert Seamans Cherin &
Mellott, LLC, hereby petitions this Court pursuant to Pa. R.C,P. 4015(b) and 42 Pa. C.S.A. S
5325 for the issuance of Letters Rogatory:
1. Harsco desires to take the oral deposition of Donald W. Clervi and Edgar E.
Morris of Luxfer Gas Cylinders (USA), a corporation located at 3016 Kansas Avenue,
Riverside, California, 92507, pursuant to a subpoena issued by an appropriate authority in
California to testify on the behalf of Luxfer Gas Cylinders (USA), on the following matters:
any agreements, contracts, or understanding between Luxfer Gas Cylinders and/or
Luxfor Group, Ltd., including all subsidiary or affiliate corporations or entities,
and Scott Teclmologies, Inc., Tyco International (US) Inc. and lor Tyeo
International, Ltd., or any of their subsidiary or affiliate corporations or entities,
for the purchase or sale of gas cylinders from January 1, 1999 to the present and
including any agreements for future purchases.
2. The depositions will take place before a court reporter duly authorized to
administer oath and will be conducted at a mutually convenient location, in Riverside, California,
on the following dates and times:
. "
~-
'Lt'ifl.,:
" '""C",
'J' "'i:iii;
Denonent
Date/Time
Donald W. Clervi
November 15, 2001, 9:00 A.M.
Edgar E. Morris
November 15, 2001, 2:00 P.M.
3. In order for Harsco to secure the desired testimony, Letters Rogatory should be
issued to the appropriate authority in California for purposes of issuing subpoenas for the
deponents to appear and testify.
4. A proposed Order and proposed Letters Rogatory are attached.
WHEREFORE, plaintiffHarsco Corporation respectfully requests that this Court
authorize the issuance of Letters Rogatory to the appropriate authority in California to compel
the deponents to appear at a mutually convenient court reporting facility and give testimony
under oath.
Respectfully submitted,
ECKERT SEAMANS CHERIN & MELLOTT, LLC
Date: 10115 I 0 I
BriM~
I.D, No. 56105
Mark E. Gebauer, Esq.
LD. No, 79646
Ron S. Chima, Esq.
LD. No. 81916
213 Market Street
8th Floor
Harrisburg, P A 17101
717.237.6000
Attorneys for PlaintiffHarsco Corporation
L0243331
2
,:. . . oj- -. ,. c-~ . 6-~''''ol ;' '.J1;t!
, ' -,_.
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
HARSCO CORPORATION,
Plaintiff,
Civil Action No.: 01-3826 Civil Term
v.
SCOTT TECHNOLOGIES, INC. and
TYCO INTERNATIONAL (US) INC.
Defendants,
LETTER ROGATORY
The Court of Common Pleas of Cumberland County, Pennsylvania to any Judge of
the Superior Conrt of California in and for the County of Riverside:
The above-captioned action was filed in the Court of Common Pleas of Cumberland
County on June 21,2001. Plaintiff Harsco Corporation is entitled to take appropriate action in
the prosecution of this matter pursuant to Pennsylvania law. Counsel for Harsco has advised
this Court that they desire to take the following non-party, oral depositions to obtain relevant
information:
Deponent
Date/Time
Donald W, Clervi
November 15, 2001, 9:00 AM.
The depositions will take place at a mutually convenient location in Riverside,
California. If the selected date and time is not available, the deposition will take place no later
than seven (7) days from November 15, 2001. Under 42 Pa.C.S.A. ~ 5325, a deposition to
obtain testimony or documents in this matter may be taken outside of Pennsylvania pursuant to
a Letter Rogatory issued by this Court. Additionally, the deponent is requested to bring any
and all documents described in attached Exhibit "A" .
L0243334
>, "_ _J . ~ '" I C___ ,
""'it
On the basis of the above, I request you, by the proper and usual process of your
Court, to authorize the issuance and service of a subpoena compelling the deponents to attend
the depositions and to provide testimony under oath for use in this matter.
Dated:
/~oe:r()1
on Pleas of
" ", - ~ -~ "
t ~, ,""-,,, _,,~
....i1
EXIDBIT "A"
ANY AND ALL documents, as that term is hereinafter defined, that constitute or refer
in any way to any contract, agreement, or understanding between Luxfer Gas Cylinders and/or
Luxfer Group, Ltd" including all subsidiary or affiliate corporations or entities, and Scott
Technologies, Inc., Tyco International, LTD and/or Tyco International (US) Inc., or any of
their subsidiary or affiliate corporations or entities, for the purchase or sale of gas cylinders
from January 1, 1999 to the present and including any agreements for future purchases.
As used in this Subpoena, the term document shall mean:
(A) A description of the document, including the form of document (e.g.,
letter, facsimile, memorandum), the date of the document, the subject of the
document, any identifying numbers or other codes on the document, and any
other information that may be relevant to identifying the document;
(B) The identity of each creator or contributor to the document;
(C) The identity of each and every recipient of the document, including cc:
recipients and bee: recipients;
(D) The basis on which privilege is claimed;
(E) If privilege is claimed on the basis of trade secret or other competitive
sensitivity claims, provide the basis for your claim that the information
contained therein is competitively sensitive;
(F) The location and custodian of the document.
L0243331
- ~ ,--~ T'
CERTIFICATE OF SERVICE
I certify that on 0 (' ~ \ 1 ~ ( , I served a copy of the foregoing document
via U.S. Mail upon counsel for Defendants, addressed as follows:
John G. Harkins, Jr., Esquire
Harkins & Cunningham
Suite 2800, 2005 Market Street
Philadelphia, Pennsylvania 19103
George B. Faller, Jr., Esquire
Martson Deardorff Williams & Otto
Ten East High Street
Carlisle, Pennsylvania 17013
N?~
Ron S. Chima, Esq.
. .
,~ ,-_ >'"'>>--"". ,.Ok",),
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
HARSCO CORPORATION,
Plaintiff,
Civil Action No.: 01-3826 Civil Term
v.
SCOTT TECHNOLOGIES, INC. and
TYCO INTERNATIONAL (US) INC.
Defendants.
LETTER ROGATORY
The Court of Common Pleas of Cumberland Connty, Pennsylvania to any Judge of
the Superior Court of California in and for the County of Riverside:
The above-captioned action was filed in the Court of Common Pleas of Cumberland
County on June 21, 2001. Plaintiff Harsco Corporation is entitled to take appropriate action in
the prosecution of this matter pursuant to Pennsylvania law. Counsel for Harsco has advised
this Court that they desire to take the following non-party, oral depositions to obtain relevant
information:
Denonent
Date/Time
Edgar E. Morris
November 15, 2001, 2:00 PM.
The depositions will take place at a mutually convenient location in Riverside,
California. If the selected date and time is not available, the deposition will take place no later
than seven (7) days from November 15,2001. Under 42 Pa.C.S.A. ~ 5325, a deposition to
obtain testimony or documents in this matter may be taken outside of Pennsylvania pursuant to
a Letter Rogatory issued by this Court. Additionally, the deponent is requested to bring any
and all documents described in attached Exhibit "A" .
.,
1. '. . "~ 1, "," ,~ '_' "
- - - '<'''';~
On the basis of the above, I request you, by the proper and usual process of your
Court, to authorize the issuance and service of a subpoena compelling the deponents to attend
the depositions and to provide testimony under oath for use in this matter,
Dated:
l~ot:.."ol
, .--..- 'b"-~-_"'~ -'~"- -, - ----'-'<\t
.
EXIDBIT "A"
ANY AND ALL documents, as that term is hereinafter defined, that constitute or refer
in any way toany contract, agreement, or understanding between Luxfer Gas Cylinders and/or
Luxfer Group, Ltd., including all subsidiary or affiliate corporations or entities, and Scott
Teclmologies, Inc., Tyco International, LTD and/or Tyco International (US) Inc., or any of
their subsidiary or affiliate. corporations or entities, for the purchase or sale of gas cylinders
from January 1, 1999 to the present and including any agreements for future purchases.
As used in this Subpoena, the term document shall mean:
(A) A description of the document, including the form of document (e.g.,
letter, facsimile, memorandum), the date of the document, the subject of the
document, any identifying numbers or other codes on the document, and any
other information that may be relevant to identifying the document;
(B) The identity of each creator or contributor to the document;
(C) The identity of each and every recipient of the document, including cc:
recipients and bcc: recipients;
(D) The basis on which privilege is claimed;
(E) If privilege is claimed on the basis of trade secret or other competitive
sensitivity claims, provide the basis for your claim that the information
contained therein is competitively sensitive;
(F) The location and custodian of the document.
L0243331
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.
CERTIFICATE OF SERVICE
I certify that on {JrtiJ...)QA If ~I
, I served a copy ofthe foregoing document
via U.S. Mail upon connsel for Defendants, addressed as follows:
John G. Harkins, Jr., Esquire
Harkins & Cunningham
Suite 2800, 2005 Market Street
Philadelphia, Pennsylvania 19103
George B. Faller, Jr., Esquire
Martson Deardorff Williams & Otto
Ten East High Street
Carlisle, Pennsylvania 17013
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CERTIFICATE OF SERVICE
I certify that on 0( ~~ '~d-Doi , I served a copy of the foregoing document
via U.S. Mail upon counsel for Defendants, addressed as follows:
John G. Harkins, Jr., Esquire
Harkins & Cunningham
Suite 2800, 2005 Market Street
Philadelphia, Pennsylvania 19103
George B. Faller, Jr., Esquire
Martson Deardorff Williams & Otto
Ten East High Street
Carlisle, pennsylvania 17013
nJ~
Ro#l. Chima, Esq.
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HARSCO CORPORATION,
Plaintiff
v,
SCOTT TECHNOLOGIES,
INC., and TYCO
INTERNATIONAL, LTD.,
Defendants
,.,.
,
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IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYL VANIA
CIVIL ACTION - LAW
NO, 01-3826 CIVIL TERM
ORDER OF COURT
AND NOW, this 2ih day of August, 2001, upon consideration of the attached
letter from Bridget E. Montgomery, Esq., attorney for Plaintiff, the hearing previously
scheduled for August 17, 2001, is rescheduled to Wednesday, November 28, 2001, and
Th~rsday, NovembeL29, 2001, commencing each day at 9:30 a.m., in Courtroom No.1,
CUlllbetJandCounty Courthouse, Carlisle, Pennsylvania.
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Bridget E. Montgomery, Esq.
213 Market Street
Eighth Floor
Harrisburg, PA 17101
Attorney for Plaintiff
John G, Harkins, Jr., Esq.
Suite 2800
2005 Market Street
PhihideJphia;PAI9I03' . . ...
Attorney for Defendant
.ScotfTechnologies,. Inc.
BY THE COURT,
TRUE COPY FROM RECORD
In Testimony whereof, I here unto set my hand
andthE!~IOf sa.ldC!l~.~;.t. :~Sle. h
Thl~dah, ~~)t~tI,:1~ ~I
Prothonotarf
~
Mark Belnick, Esq.
~y International Ltd.
West sih Street, 43rd Floor
.. New York, NY 10019
Attorney for Defendant
Tyco International, Ltd. .
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213 A[(lrkct Street
E~I?"tfl Floor
Harrisblil:,<?, E"I 17101
Addres.,' wrrcspolldcl/u: [0:
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7t'fcp/llllle: 717.237.6000
F.lt-silllilc: 717.237.6019
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ECKERT SEAMANS
ATTORNEYS AT LAW
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ECKERT SEAMANS CHERIN & MELLOTT, LLC
August 24, 2001
The Honorable J. Wesley Oler, Jr.
Cumberland County Court of Common Pleas
One Courthouse Square
Carlisle, PA 17013-387
Attention: Ruth Coulson
Re:
Harsco Corporation v. Tyco International (US), Inc.
Civil Action No.: 01-3826 Civil Term
Dear Ms. Coulson:
This will confirm our conversation today, in which I informed you that
November 28'h and 29" are dates that all parties agreed are suitable for a hearing
in this matter in the event that it does not settle. As we discussed, I asked that
both dates be held in the event that the hearing cannot be completed in one day.
Thank you for your courtesy and cooperation.
Very truly yours,
C,
BEM:jah
cc: John G. Harkins, Jr., Esquire
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{L0241753.1}
BridgetE.kfon~omery
717.237.6054
bxm@escm.com
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IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYL VANIA
HARSCO CORPORATION
Plaintiff,
v.
Civil Action No. 01-3826 Civil Term
SCOTT TECHNOLOGIES, INC. and
TYCO INTERNATIONAL (US) INC.
Defendants.
DEFENDANTS' RESPONSE TO PLAINTIFF'S
MOTION FOR STATUS CONFERENCE AND FOR SCHEDULING ORDER
Defendants Scott Technologies, Inc. and Tyco International (US) Inc. ("defendants"), by
their undersigned counsel, hereby respond to PlaintiffHarsco Corporation's ("plaintiff') Motion
for Status Conference and For Scheduling Order as follows:
I. Admitted in part and denied in part. It is admitted only that plaintiff initiated the
captioned action against defendants arising out of an alleged breach of contract. By way of
further response, the "Purchasing Agreement" at issue in this matter, attached as Exhibit "A" to
plaintiffs complaint, is a writing, the terms of which speak for themselves. Any characterization
thereof by plaintiff is denied. It is also denied that plaintiff initiated this action against
defendants on June 26, 200 I. Rather, this action was initiated by writ of snnnnons issued on
June 21, 2001, and plaintiffs complaint was filed on June 27, 2001.
2. Admitted.
3. Admitted,
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4. Denied. It is specifically denied that defendants are using the ninety (90) day
stay of this litigation "to 'build a case' against Harsco" and that defendants are not genuinely
interested in reaching a business solution. As plaintiff is well aware, defendants are actively
pursuing a business resolution.
5. Admitted in part and denied in part. The "Purchasing Agreement" at issue in
this matter, attached as Exhibit "A" to plaintiffs complaint, is a writing, the terms of which
speak for themselves. Any characterization thereof by plaintiff is denied. By way of further
response, defendants do not oppose plaintiffs suggestion that all parties engage in discovery and
appear for the November 28-29, 2001 scheduled hearing on plaintiffs request for preliminary
injunctive relief as originally scheduled. However, defendants are opposed to a hearing on the
merits in the event that discovery is not complete by November 15, 2001. Defendants have
responded to all olltst~ding discovery served by plaintiff, Defendants' written discovery
directed to plaintiffreinains outstanding and depositions of plaintiff have been scheduled to take
place the week of November 12, 2001. In addition, plaintiff has served a subpoena on a third
party with a return date of November 2,2001, and has scheduled depositions of a third party to
take place on November 15, 2001.
6. Admitted in part and denied in part. Defendants do not oppose plaintiffs
request for a status conference to discuss this matter with the Court, and counsel for defendants
will make themselves available for such a conference. Defendants are also not opposed to the
Court's issuance of an orderrequiring the parties to complete discovery by November 15, 2001.
Defendants are opposed, however, to a hearing on the merits in the event that discovery is not
complete by November 15, 2001.
7. Plaintiffs averments in this paragraph do not call for an admission or denial.
'"
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By way of further response, defendants will also make themselves available for the conference
requested by plaintiff,
WHEREFORE, defendants object to plaintiffs representations regarding defendants
alleged failure to seek a resolution of this matter is good faith and to any of plaintiff s
characterizations of the "Purchase Agreement" at issue in this litigation. Defendants do not
oppose the status conference plaintiff requests, but oppose a hearing on the merits on November
28-29,2001, in the event that discovery is not complete by November 15, 2001.
Respectfully submitted,
HARKINS CUNNINGHAM
BY:_ i- --<~_J --:h^~
Wt:llill G. Mkins, Jr., Esquire (04441)
Barbara Brigham Denys, Esquire (78562)
2800 One Commerce Square
2005 Market Street
Philadelphia, PA 19103-7042
(215) 851-6700
~TSONDEARDORFF~LL~S
& OTTO, P.C.
George B. Faller, Jr., Esquire (49813)
Ten East High Street
Carlisle, PA 17013-3341
(717) 243-3341
Attorneys for Defendants
Dated: October 25, 2001
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CERTIFICATE OF SERVICE
1, Barbara Brigham Denys, Esquire, hereby certify that a true and correct copy of
the foregoing response to plaintiffs motion for status conference and for scheduling
order was served via United States First Class Mail, postage prepaid, on October 25,
2001 on counsel listed below:
Bridget E, Montgomery, Esquire
Echert Seamans Cherin & Mellott, LLC
213 Market Street, Eighth Floor
Harrisburg, P A 17101
George B. Faller, Jr., Esquire
Ten East High Street
Carlisle, PA 17013-3341
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t:..Barbara Brigham Denys, Esquire
Attorney for Defendants
Dated: October 25, 2001
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HARSCO CORPORATION,
Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYL VANIA
v.
CIVIL ACTION - LAW
SCOTT TECHNOLOGIES,
INC" and TYCO
INTERNATIONAL, LTD.,
Defendants
NO. 01-3826 CIVIL TERM
ORDER OF COURT
AND NOW, this 2nd day of November, 2001, upon consideration of Plaintiffs
Motion for Status Conference and for Scheduling Order, and of Defendants' Response to
Plaintiff's Motion for Status Conference and for Scheduling Order, a status conference is
scheduled in chambers of the undersigned judge for Monday, December 3, 2001, at 3:30
p.m.
BY THE COURT,
John G. Harkins, Jr" Esq.
Suite 2800
2005 Market Street
Philadelphia, PA 19103
Attorney for Defendant
Scott Technologies, Inc.
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Bridget E. Montgomery, Esq.
213 Market Street
Eighth Floor
Harrisburg, P A 17101
Attorney for Plaintiff
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George B. Faller, Jr., Esq.
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Carlisle, PA 17013
Attorney for Defendants
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NOV 1 5 2001 ~
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
HARSCO CORPORATION,
Plaintiff,
Civil Action No,: 01-3826 Civil Term
v,
SCOTT TECHNOLOGIES, INC. and
TYCO INTERNATIONAL (US) INC.
Defendants,
STIPULATION TO DISCONTINUE AND DISMISS ACTION WITHOUT PREJUDICE
AND NOW, Harsco Corporation ("Harsco") and Scott Technologies, Inc. ("Scott")
and Tyco International (US) Inc. ("Tyco"), having resolved the above-captioned action by
Agreement dated November -1-,2001, hereby stipulate to discontinue and dismiss the
captioned action without prejudice. The parties therefore respectfully request that the Court
enter this Stipulation upon the record and dismiss the captioned action without prejudice.
{L0243952.1}
.
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Eckert Seamans Cherin & Mellott, LLC
By: I
Bridget E.
Attorney fo laintiff
Harsco Corporation
Harkins Cunningham
B~oL--;-:) I~_
J G. Harkms, Jr., EsqUIre
Attorney for Defendants:
Scott Technology, Inc. and
Tyco International (US) Inc.
{L0243952.1}
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213 l\1arket Street
Eighth Floor
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Address correspondence to:
Post Office Box 1248
Harrisburg, PA 17108-1248
Telephone: 717.237.6000
Facsimile: 717.237.6019
U'wU'.escm.com
Bpston
FiJft Lauderdale
Haddonfield, NJ
Harrisburg
Philadelphia
Pittsburgh
M:ashingtotl, D. C.
ECKERT SEAMANS
ATTORNEYS AT LAW
NOV 15 2001t
ECKERT SEAMANS CHERIN & MELLOTT, LLC
November 14, 2001
Office of the Prothonotary
Court of Common Pleas
Cumberland County Courthouse
One Courthouse Square
Carlisle, PA 17013
Attention: "Becky"
Re:
Harsco Corporation v. Scott Technologies, Inc. and
Tyco International(US) Inc,
Civil Action No.: 01-3826
Dear Becky:
Pursuant to my telephone conversation with your office of this afternoon,
enclosed you will find three copies of the proposed Order to dismiss the
above-captioned action without prejudice pursuant to a Stipulation we filed
today, as well as stamped, addressed envelopes for all counsel ofrecord.
Apparently, the extra copies of the Order and the envelopes were
inadvertently omitted from the package we sent with our messenger today,
which contained the Stipulation. We nnderstand the Stipulation has been
docketed already.
Thank you for your continued courtesy and assistance.
Very truly yours,
~~~
Enclosures
BEM:jah
{L0244740.1}
Bridget E. Montgomery
717.237.6054
bxm.@escm.com
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NOV 1 5 2001~
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
HARSCO CORPORATION, .
Plaintiff,
Civil Action No.: 01-3826 Civil Term
v.
,
SCOTT TECHNOLOGIES, INC. and
TYCO INTERNATIONAL (US) INC.
(Oler, J.)
Defendants.
ORDER
AND NOW, this _ day of November, 2001, the Court having been informed that
the parties to the captioned action have. resolved it by Agreement, and upon consideration of
the parties' executed Stipulation To C:scontinue and Dismiss Action Without Prejudice. IT IS
HEREBY ORDERED THAT the action is Dismissed Without Prejudice.
Oler, J.
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NOV 15 2001y-
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
HARSCO CORPORATION,
Plaintiff,
Civil Action No.: 01.3826 Civil Term
v.
SCOTT TECHNOLOGIES, INC. and
TYCO INTERNATIONAL (US) INC.
(Oler, J.)
Defendants.
ORDER
AND NOW, this _ day of November, 2001, the Court having been informed that
the parties. to the captioned action have resolved it by Agreement, and upon consideration of
the parties' executed Stipulati!>n To Discontinue and Dismiss Action Without Prejudice, IT IS
HEREBY ORDERED THAT the action is Dismissed Without Prejudice,
Oler, J.
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NOV 1 5 2001 ~
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
HARSCO CORPORATION,
Plaintiff,
Civil Action No.: 01.3826 Civil Term
v.
SCOTT TECHNOLOGIES, INC. and
TYCO INTERNATIONAL (US) INC.
(Oler, J.)
Defendants.
ORDER
AND NOW, this _ day of November, 2001, the Court having been informed that
the parties to the captioned action have resolved it by Agreement, and upon consideration of
the parties' executed Stipulation To Discontinue and Dismiss Action Without Prejudice, IT IS
HEREBY ORDERED THAT the action is Dismissed Without Prejudice.
Oler, J.
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NOV 1 5 2001 ~
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
HARSCO CORPORATION,
. .
Plaintiff,
Civil Action No.: 01-3826 Civil Term
v.
SCOTT TECHNOLOGIES, INC. and
TYCO INTERNATIONAL (US) INC.
(Oler, J.)
Defendants.
ORDER
AND NOW, this _ day of November, 2001, the Court having been informed that
the parties to the captioned acdon hav.:. resolved it by Agreement, and upon consideration of
the parties' executed Stipalat::;:; To I:::continue and Dismiss Action Witholit Pi,-]:.ciicc, IT IS
HEREBY ORDERED THAT theac,;on is Dismissed Without Prejudice.
Oler, J.
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IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
HARSCO CORPORATION,
Plaintiff,
Civil Action No.: 01-3826 Civil Term
v.
SCOTT TECHNOLOGIES, INC. and
TYCO INTERNATIONAL (US) INC.
(Oler, J.)
Defendants.
ORDER
AND NOW, this ~ day of November, 2001, the Court having been informed that
the parties to the captioned action have resolved it by Agreement, and upon consideration of
the parties' executed Stipulation To Discontinue and Dismiss Action Without Prejudice, IT IS
HEREBY ORDERED THAT the action is Dismissed Without Prejudice.
Oler, J.
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HARSCO CORPORATION,
Plaintiff
v,
IN THE COURT OF CO.MM:ON PLEAS OF
CUMBERLAND COUNTY, PENNSYL V ANlA
CIVIL ACTION - LAW
SCOTT TECHNOLOGIES,
INC., and TYCO
INTERNATIONAL, LTD"
Defendants
NO. 01-3826 CIVIL TERM
ORDER OF COURT
AND NOW, this 16th day of November, 2001, upon consideration of the
Stipulation To Discontinue and Dismiss Action without Prejudice recently filed in the
above matter, the hearing previously scheduled in this matter for November 28, 2001, and
November 29, 2001, and the status conference previously scheduled for December 3,
2001, are cancelled.
BY THE COURT,
Bridget E. Montgomery, Esq.
213 Market Street
Eighth Floor
Harrisburg, P A 17101
~ ,..4..1
Attorney for Plaintiff I ~
John G. Harkins, Jr., Esq.
Suite 2800
2005 Market Street
Philadelphia, PA 19103
Attorney for Defendant
Scott Technologies, Inc.
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George B. Faller, Jr., Esq.
10 East High Street
Carlisle, PA 17013
Attorney for Defendants
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