Jury Awards Glasslam $22.5 Million

On May 21 the United States District Court, Southern District of Florida awarded Nebula Glass International, d/b/a Glasslam N.G.I. Inc. $22.5 million in a jury verdict against one of its former vendors, Durham, N.C.-based Reichhold Inc.

Steve Howes, president and owner of Glasslam said that from the late 1990s through 2001 Reichhold had agreed to manufacture polymer resin for Glasslam, under certain specifications. Howes explained that without Glasslam's knowledge or consent, Reichhold failed to manufacture the polymer resin in accordance with the given specifications. This, according to Howes, caused many of Glasslam's customers to experience failures with their products.

During the hearing, the jury agreed with Glasslam that the problems were due to Reichhold's failure to manufacture the resins as specified. The jury awarded damages to Glasslam for losses and for the replacement of its customers' failed products.

"This trial proved Glasslam did nothing wrong," said Howes. "We lost some of our reputation as a first-class resin supplier over this, and the trial proved the problem was not our fault."

According to Phil Bridges, corporate and marketing communications manager for Reichhold, his company was disappointed with the jury's verdict, and does not believe it is supported by the evidence. He said they are appealing the decision.

"We are confident we will prevail, because we believe our resin did not fail and would not fail in the application," said Bridges.

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