Some of Rossi’s Claims against Industrial Heat Dismissed
A federal judge in Miami has dismissed four of the claims in Andrea Rossi’s lawsuit against Industrial Heat on July 19, 2016. Four other claims were left intact so the suit is moving forward.
United States District Judge Cecilia M. Altonaga took the action; when she reviewed Industrial Heat’s motion to dismiss the lawsuit. The four claims Altonaga dismissed were:
- Count II: Breach of Contract for Exceeding the Scope of the License. Altonaga found that Industrial Heat did not violate a license agreement by trying to get a European patent for Rossi’s ecat low energy nuclear reaction (LENR) technology. Instead she found that Industrial Heat may have infringed upon his patents.
- Count V: Civil Conspiracy. The judge found there was no conspiracy to misappropriate Rossi’s intellectual property. Although she did find that Rossi’s claims that Industrial Heat owner Tom Darden; and his partners, misappropriated his intellectual property were valid.
- Count VII Constructive and Equitable Fraud. The judge found that Darden and company did abuse their confidential relationship with Rossi.
- Count VIII Patent Infringement. “Defendants did not create, sell, or otherwise commercialize any products infringing Plaintiffs’ patents, so as to qualify as “use” within the meaning of 35 U.S.C. (United States Code Section 271, Alatonga wrote. “Instead, they simply approached several administrative agencies, seeking to obtain intellectual property rights. Furthermore, Defendants’ alleged statements claiming ownership of Plaintiffs’ intellectual property and solicitation of investments based on such ownership also do not constitute patent infringement. ”
Altatonga’s action amounts to housecleaning. She is simplifying the case so it can move forward. The judge did rule that Rossi has a case by leaving the following counts intact:
- Count I. Breach of Contract for Nonpayment. Rossi and his attorneys can move forward with claims that Darden and his partners broke a contract by not paying him for ecat as agreed to in 2012.
- Count III Unjust Enrichment. Altatonga ruled that Rossi’s attorney can make the argument that Darden; and his partner; J.T. Vaughn, tried to enrich themselves at the inventor’s expense.
- Count IV Misappropriation of Trade Secrets. Rossi has the right to make the case that Vaughn and Darden tried to steal his intellectual property; by trying to patent the e-cat themselves. She also let arguments that Industrial Heat tried to convey Rossi’s intellectual party to unidentified competitors; falsely claimed that that one of their agents helped invent e-cat, and failed to return Rossi’s trade secrets as required by a contract stand.
- Count VI Fraud and Deceit. Rossi can argue that Darden falsely claimed that he controlled Industrial Heat and had the funds to commercialize e-cat. Among other things, Rossi is alleging that Darden did not have enough money to finance the ecat tests.
This means the lawsuit will continue, the next action is scheduled for July 26, 2016. On that day Altonaga has ordered the parties to select a mediator and file proposed order scheduling mediation. That’s an effort to settle the case out of court, if it fails the case is scheduled for trial on June 26, 2017.