MINNEAPOLIS, May 21 /PRNewswire-FirstCall/ -- Appliance Recycling Centers of America, Inc. today reported that ARCA was denied its day in court against JACO Environmental following a decision of a panel of the Ninth Circuit Court of Appeals. Jack Cameron, CEO and founder of ARCA, expressed disappointment in the court's decision that ended ARCA's six-year battle to hold JACO accountable for its false statements claiming invention of an appliance recycling system that was designed and first used by ARCA.
ARCA's original claims in the suit had included a request that the court declare invalid a patent obtained by JACO after one of the claimed inventors had studied ARCA's recycling process at the Company's facilities while he was a consultant for the Company. However, very early in the litigation JACO conceded the issue of who developed the system in question by promising not to sue ARCA or its customers for infringement of the patent obtained by JACO based on the ARCA recycling system.
Cameron stated: "While we are extremely disappointed by the Ninth Circuit decision, we do not believe that the basic facts that compelled us to bring suit in the first place have been found inaccurate. If anything, the acts by JACO that we originally took issue with have been verified through the litigation process. However, the relatively slight damage that ARCA suffered combined with some changes in the law relating to false advertising made our lawsuit much more difficult to sustain after JACO promised not to sue us on the patent they obtained on our process. We still feel that pursuing this claim was the right choice for ARCA and our customers. ARCA will continue to work toward making sure that all competition in the marketplace is fair and honest."
FOR MORE INFORMATION, CONTACT: Edward R. (Jack) Cameron, CEO, or Peter Hausback, EVP and CFO (952) 930-9000 About ARCA
ARCA (http://www.arcainc.com/), one of the nation's largest recyclers of major household appliances for the energy conservation programs of electric utilities, currently provides services for 150 utility programs in the U.S. and Canada. Toxic chemicals and environmentally harmful materials such as ozone-depleting refrigerants, PCBs, mercury and oil are carefully recovered in the decommissioning process for destruction or disposal, preventing them from contaminating soil, air and water resources. The Company is also the exclusive North American distributor for UNTHA Recycling Technology (URT), one of the world's leading manufacturers of technologically advanced refrigerator recycling systems and recycling facilities for electrical household appliances and electronic scrap. Through its ApplianceSmart operation (http://www.appliancesmart.com/), ARCA also is one of the nation's leading retailers of special-buy household appliances, primarily those manufactured by General Electric, Electrolux and Whirlpool. These special-buy appliances, which include close-outs, factory overruns and discontinued models, typically are not integrated into the manufacturer's normal distribution channel. ApplianceSmart sells these new appliances at a discount to full retail, offers a 100% money-back guarantee and provides warranties on parts and labor. As of May 2010, ApplianceSmart was operating 19 factory outlets: six in the Minneapolis/St. Paul market; one in the Rochester, Minn., market; four in the Columbus, Ohio, market; six in the Atlanta market; and two in San Antonio, Texas.
This press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995, including statements regarding ARCA's future success. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made, including the risks associated with general economic conditions, competition in the retail and recycling industries and regulatory risks. Other factors that could cause operating and financial results to differ are described in ARCA's periodic reports filed with the Securities and Exchange Commission. Other risks may be detailed from time to time in reports to be filed with the SEC.
Appliance Recycling Centers of America, Inc.
CONTACT: Edward R. (Jack) Cameron, CEO, or Peter Hausback, EVP and CFO,
both of Appliance Recycling Centers of America, Inc., +1-952-930-9000
Web Site: http://www.arcainc.com/
