The Calgary lawyer for Cell-Loc Inc. CEO Michel Fattouche has dismissed a $46-million legal claim against the company as an unfounded abuse of the justice system.
“I am astounded that such a fanciful lawsuit has been brought,” said Virginia May, who issued a news release late last week to respond to an earlier announcement that former Cell-Loc business partner Aim Global Technologies is suing Fattouche for allegedly defaulting on payments.
“The lawsuit is a work of fiction and is a misuse of the court system in this country . . . The allegations in the statement of claim have absolutely no foundation in fact. The claim should be thrown out of court,” May said.
The lawsuit has been filed through Aimtronics, the Aim Global subsidiary that provided electronic manufacturing to Cell-Loc since late 1999 for development of its cellular-location network equipment and services. The Toronto-based firm, which has five manufacturing plants across the continent, claims Fattouche failed to make good on payments for services and supplies despite repeated promises.
“Being forced to act upon the obligation of Mr. Fattouche in seeking our full legal remedy from him is unfortunate, but clearly in the best financial interest of our shareholders and our electronic supply chain,” Aimtronics CEO Steven deJaray said in a statement.
deJaray said the company will have to take a write-down for the fiscal year ending March 2001 of $17.7 million US for raw Cell-Loc components and $5.5 million US for their accounts receivables.
May said she intends to file court documents to have the case dismissed, and to have Fattouche provide sworn evidence that Cell-Loc Inc. owes nothing to Aimtronics. She said Fattouche is considering legal action against Aimtronics and its CEO for filing the “frivolous” lawsuit, which she said was possibly rooted in the former business partner’s “current dismal financial status”.
