A New Jersey trial court has ruled against the founder of Pure Tech International Inc., who had charged that the firm owed him money and royalties, breached a contract and its fiduciary duty and committed fraud. Frank Tammera Sr. filed suit against PTI Plastics Inc., a subsidiary of Pure Tech of Somerset, N.J., after he was dismissed as an officer, director and stockholder in June 1989 under circumstances that the company termed ``cause'' for dismissal. He sought reinstatement to his former position of president of PTI Plastics, as well as the reversal of the placement in escrow and final retirement of 690,000 shares of stock.
The New Jersey Superior Court in Ridgefield, N.J., ruled March 4 that the company did not have to reinstate Tammera, but did have to pay him about $30,000 in indebtedness and $14,377 in royalties related to the use of the company's proprietary recycling technology.
The court dismissed the fraud and breach of contract charges, and upheld existing agreements between the company and Tammera, including his stock escrow agreements.
Len Bogner, a spokesman for Pure Tech International, said the company was pleased with the decision.
``One of the original claims had to do with technology for cleaning, grinding and processing of PET bottles,'' he said.
Contacted at his home in Blairstown, N.J., Tammera said he has not decided what to do next.
``As far as I'm concerned, the judge ignored many important points and made the completely wrong decision,'' he said.
Pure Tech makes specialty plastic products for consumer and industrial markets, including medical tubing, lawn and garden products, dispenser tubing and molded components. The company also produces specialty plastic materials, including copolymer and vinyl dispersion resins used in flooring, inks and coatings, PVC compounds, food packaging products, and recycled PET for packaging and fibers.