C-RAD AB: The Appeal court in Malmö confirms claim for damages against the German company LAP

Press release 2012-11-28

The Appeal court in Malmö confirms C-RAD Positioning AB’s claim for damages against the German company LAP  

C-RAD AB with its three fully owned subsidiaries in Sweden and three international sales companies are all active in the field of radiation therapy. The appeal court has confirmed the previous verdict of the district court of Malmö in the dispute between C-RAD Positioning AB and the German company LAP.

At the end of 2006 a private label five year agreement was signed between C-RAD Positioning AB, a fully owned subsidiary of C-RAD AB, and the German company LAP. The first ordered systems were delivered to LAP in 2007. Late 2008 a new order was placed by LAP followed by a new order in Q3 2009. In November 2009 LAP cancelled the orders and terminated the cooperation agreement. LAP claimed breach of contract by C-RAD due to delivery problems, quality problems and violation of an exclusivity undertaking. The breaches were denied by C-RAD. C-RAD claimed compensation for damages due to the cancellation of orders, and initiated court proceedings against LAP in December 2011 the district court of Malmö ruled in favour of C-RAD, and concluded that LAP did not have the right to terminate the agreement. LAP decided to appeal. In November 2012 the court of appeal confirmed the previous verdict of the district court. The total costs for LAP for damages to C-RAD as well as legal costs for itself and C-RAD are estimated to be in the range of 4 MSEK. If not appealed to the Supreme Court (which only will allow an appeal in the unlikely case of precedent interest or mistakes by the court of appeal) the verdict will be gain legal force in December 2012.

Erik Hedlund, CEO, C-RAD AB:

” C-RAD, as a small company in 2006 with limited sales resources, was dependent on the performance by LAP. As performance in 2008 and 2009 failed discussions between the parties started. These ended up by the termination of the relationship by LAP. C-RAD knew, the LAP accusations were wrong. We are satisfied that both the verdicts of the district court and the court of appeal were in favour of C-RAD.

C-RAD is of the opinion, that the real reason for the LAP termination was ongoing competitive developments. This was according to the signed agreement not allowed.  ”

For further information:

Erik Hedlund, CEO C-RAD AB, Phone +46-(0)18-66 69 31, E-Mail erik.hedlund@c-rad.com