JACKSON, MI -- Sparton Corp. on Wednesday was awarded a $3.6 million judgment by a jury that determined the EMS provider did not breach its duties in the manufacture of product for a pair of defendants.

The jury awarded Sparton damages in the amount of $3.6 million, $1.9 million of which was for raw materials. An appeal by the defendants, Util-LINK LLC and National Rural Telecommunications Cooperative, remains possible.




The dispute dates to September 2002, when Sparton Technology Inc. filed an action in the U.S. District Court to recover unreimbursed costs incurred as a result of a manufacturing relationship with two entities, Util-LINK of Delaware and NRTC of the District of Columbia. On or about Oct. 21, 2002, the defendants filed a counterclaim seeking money damages alleging that STI breached its duties in the manufacture of products for the defendants. The defendant NRTC asked for damages in the amount of $20 million for the loss of its investment in and loans to Util-LINK. In addition, the defendant Util-LINK had asked for damages in the amount of $25 million for lost profits. Sparton had reviewed these claims and felt they were duplicative. Util-LINK did not pursue its claim at trial.

The case went to trial Sept. 19, and the judgment was entered Nov. 9.

In addition to the award, the jury found that Sparton had not breached its duties in the manufacture of product for the defendants, and awarded no damages to either Util-LINK or NRTC.

In a press release, Sparton said it expects that there will be post-trial proceedings including an appeal of the decisions that could impact any ultimate result.