Euro-Pro Operating LLC has announced that it filed suit against Elec-Tech International Co., Ltd. ETI is a China-based OEM and ODM manufacturer in the home appliances industry.
The history leading up to the suit began when the two companies started working together in a several-months-long product development effort that ended in July, Euro-Pro stated. At that point, Euro-Pro related, it terminated its relationship with ETI after determining that the manufacturer could not produce products that met Euro-Pro’s quality standards. In the aftermath, ETI brought a legal action in a Zhuhai City Intermediate People’s Court, suing Euro-Pro for $6.8 million for what it declared were completed products and samples, according to Euro-Pro, as well as damages caused by cancellation of orders. Thereafter, Euro-Pro began arbitration in the parties’ agreed forum in Boston against the ETI subsidiary with which it had contracted, Euro-Pro maintained, claiming damages in excess of $18 million.
“We are disappointed it has come to the point where we have to take legal action, but ETI was unable to fulfill their obligations to produce first-rate products for our brands,” Mark Barrocas, Euro-Pro president, said. “Our company continues to grow and thrive because we won’t settle for anything but the best when it comes to the quality of the appliances. We refuse to attach our name to anything that does not reflect the outstanding performance our customers have come to expect from Euro-Pro products.”
Euro-Pro noted that it would meet with ETI in a Boston-based arbitration in the coming weeks.