Skip to main content
Sister Publication Links
  • Sustainable Plastics
  • Plastics News China
  • Rubber & Plastics News
logo-pn-color
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Processor News
    • Suppliers
    • More News
    • End Markets
    • FYI Charts
    • LSR World
    • Multimedia
    • NPE2021
    • K Show
    • ENGEL Sponsored Content
    • Special Reports
    • Top materials of injection molders
      Recycled PET use by product category
      US PET, flexible packaging desintations
      Global fluropolymers additives market: CAGR
    • Exhibitors back NPE cancellation: ‘We couldn't take that risk'
      NPE2021 canceled as in-person event
      NPE reviews its options as pandemic prompts exhibitor to exit
      Machine builders meet pressing needs for plastic in 2020
    • Sponsored By ENGEL Machinery
      Tailored maintenance for injection molding machines and robots
      Sponsored By ENGEL Machinery
      Improve maintenance efficiency with e-connect.monitor
      Sponsored By ENGEL Machinery
      Maximum precision for lowest shot weights
      Sponsored By ENGEL Machinery
      Even more cost effectiveness for small precision parts
    • Injection Molding
    • Blow Molding
    • Film & Sheet
    • Pipe/Profile/Tubing
    • Rotomolding
    • Thermoforming
    • Recycling
    • Machinery
    • Materials
    • Molds/Tooling
    • Product news
    • Design
    • What Keeps You Up At Night
    • Mergers & Acquisitions
    • Sustainability
    • Public Policy
    • Material Insights Videos
    • Numbers that Matter
    • Polymer Points Live
    • Automotive
    • Packaging
    • Medical
    • Consumer Products
    • Construction
    • Videos
    • Galleries
    • Podcasts
    • CEO Issue
    • Best Places to Work
    • Processor of the Year
    • Rising Stars
    • Women Breaking the Mold
  • Opinion
    • The Plastics Blog
    • Kickstart
    • Heavy Metal
    • One Good Resin
    • BRICS and Plastics
    • All Things Data
    • Viewpoint
    • Perspective
    • Mailbag
    • Watching, and hoping, for progress in 2021
      COVID-19 stories dominate 2020 headlines
      Plastic Globes ask: Was there a lighter side in 2020?
      Compounders write a business survival story in 2020
    • Kickstart: Another push to reduce plastic packaging
      Kickstart: People bought a lot of refrigerators in 2020
      Kickstart: RVs gain ground as 'tailor-made' social distance vacation option
      Kickstart: Building a foam platform
    • Heavy Metal: Coronavirus edition, plus the work of working from home
      Don't put off succession planning
      What's a good gift for your cobot? Batteries?
      Here's some big ideas to mull over the holidays
    • Chase expands giving campaign in 2020
      McDivitt will showcase Ascend's COVID-19 work on CNBC's Mad Money
      Move over, Plastic Man: Here comes Plastic Woman
      Star in spotlight with West Virginia philanthropy award
    • The business case for producer responsibility
      Think divided government stalls plastics legislation? Think again
      ACC, NAM eye economic priorities in Biden presidency
      As scrap exports drop, will plastics recycling rate fall?
    • Just how big is thermoforming in North America?
      Changing names for compounders embracing corporate branding
      Diversity the key to outperforming the market
      A timeline of the industry's COVID response
    • Watching, and hoping, for progress in 2021
      The business case for producer responsibility
      Compounders write a business survival story in 2020
      Think divided government stalls plastics legislation? Think again
    • Plastics industry business owners: Listen to your future workforce
      Perspective: ‘Fake news' of a different sort?
      Perspective: Making products in the USA is good for the planet
      Perspective: Reflections on a decade of global industry collaboration on marine litter
    • Modernizing recycling infrastructure will benefit businesses as well as the environment
      Mailbag: Oil-plastics connection is overstated
      Mailbag: Plastics recycling not cost-effective
      Mailbag: Price increases hurting North American PE buyers
  • Shop Floor
    • Blending
    • Compounding
    • Drying
    • Injection Molding
    • Purging
    • Robotics
    • Size Reduction
    • Structural Foam
    • Tooling
    • Training
    • Maintenance can ensure efficient blender operation
      Dosing: Perfect for adding color
      Blending vs dosing: What you need to know
      Going low or high: Comparing volume
    • Colors and custom compounds
      In the laboratory: Compounding solutions
      Recycling content: Resins going ‘green’
      Compounding: Glass and other fillers
    • Dryer maintenance: Don’t err with air
      Dryers: Options for a shop’s process
      Dryer installation: Going central?
      Resins: Hygroscopic or non-hygroscopic
    • Electric injection molding presses: Efficiency is key
      Hydraulic injection molding machines
      Proper maintenance can prevent downtime
      Hybrid injection molding machines
    • Purging Hot runners: Open or closed methods
      Purging extrusion machinery
      Purging extrusion blow molding machines
      Purging: Chemical, abrasive and non-abrasive
    • Controls, special applications boost production, profitability
      Robot maintenance key for smooth operation
      High-speed robots: A rapid way to increase efficiency
      Robots: Every shape and size
    • Maintenance: Key for efficiency
      Shredders: Plastic in pieces
      Safety first for size reduction
      Granulators: The right fit
    • Structural foam molding: Flexibility for processors
      Video: Structural foam molding
    • Mold inventory: How many molds does a shop have?
      Molds: Innovation
      Mold changeover: Saving time and money
      How molds work
    • Labor: Apprenticeships may provide answer
      College training, programs
      Internships: Solving the skills gap in-house
      Lean Six Sigma: Transforming business operation
  • Events
    • Plastics News Events
    • Industry Events
    • Livestreams/Webinars
    • Ask the Expert
    • Polymer Points Live
    • Reifenhäuser Technologies Livestreams
    • 2020 Caps & Closures Library
    • Plastics in Healthcare Library
    • Women Breaking the Mold Networking Forum Library
    • Polymer Points Live - July 2020
      Polymer Points Live - October 2020
      Polymer Points Live - August 2020
      Polymer Points Live - December 2020
    • Plastics in Healthcare 2020
    • Plastics News Executive Forum
    • Plastics in Automotive
    • Plastics News Caps & Closures
    • Plastics in Healthcare
    • Women Breaking the Mold Networking Forum
  • Resin Prices
    • All Resins
    • Commodity TPs
    • High Temp TPs
    • ETPs
    • Thermosets
    • Recycled Plastics
    • Historic Commodity Thermoplastics
    • Historic High Temp Thermoplastics
    • Historic Engineering Thermoplastics
    • Historic Thermosets
    • Historic Recycled Plastics
  • Rankings
    • Injection Molders
    • Blow Molders
    • Film Sheet
    • Thermoformers
    • Pipe Profile Tubing
    • Rotomolders
    • Mold/Toolmakers
    • LSR Processors
    • Recyclers
    • Compounders - List
    • Association - List
    • Plastic Lumber - List
    • All
  • Data Store
  • Directory
  • More+
    • Classifieds
    • Digital Edition
    • Newsletters
    • Sponsored Content
    • Processor of the Year submissions
    • White Papers
    • Sponsored By Mitsubishi
      Innovative new technology from Mitsubishi Engineering-Plastics Corporation helps reduce emission footprints
      Canon Virginia, Inc.
      Sponsored Content By Canon Virginia, Inc.
      Canon Virginia Inc. brings collaboration to the table
      Sponsored By CDS MACHINES
      Facing medical equipment shortages during COVID-19 outbreak?
      Sponsored Content By Canon Virginia, Inc.
      Transform your molding capabilities with the Canon Shuttle Mold System
    • Sponsored By Conexiom
      Use Sales Order Automation to free up time for CSRs to focus on customers, not manual entry
    • Place an Ad
    • Sign up for Early Classified
MENU
Breadcrumb
  1. Home
  2. News
May 27, 2016 02:00 AM

Court dismisses battle between Husky and Athena; Schad seeks a successor

Michael Lauzon
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Athena Automation Ltd.
    Robert Schad founded Athena Automation Ltd. after selling Husky Injection Molding Systems Ltd. in 2007.

    Toronto — Now that he has endured a fierce legal battle with his former company, Robert Schad is turning his attention to succession.

    Schad and the company he established several years ago, Athena Automation Ltd., can breathe a little easier after a court on April 22 dismissed legal actions against them by Husky Injection Molding Systems Ltd. Husky had alleged that Schad and Athena misused confidential information in their designs for Athena's injection molding presses. Athena employees had access to new Husky technology at injection molder Niigon Technologies Ltd. in northern Ontario, but the judge found Athena did not make material use of the knowledge.

    “We are thrilled that Husky's claims have been defeated,” Schad said in an email to Plastics News. “That is what is most important.”

    Husky appeals

    For its part, Husky is appealing the ruling, which came in a 127-page opinion from Justice Frank Newbould on the Ontario Superior Court of Justice, Commercial List in Toronto.

    “The legal proceedings that had been initiated against Robert Schad, Athena and others were a last resort to an extremely challenging situation,” Husky CEO John Galt said in an email to Plastics News.

    “This decision was initiated only after an extended period of discussion and mediation, lasting well over a year, in which the parties were unable to resolve the dispute in a mutually agreeable way. While we are disappointed with the judge's interpretation of the history of events, our concerns in initiating the lawsuit were justified by the court's findings relating to the misuse of Husky's confidential information.”

    Schad requested email correspondence rather than a phone interview because his hearing is not good. At trial, questions for Schad were posted on a video monitor for him to read before answering.

    Now Schad, who is 87, is looking to pass the reins of Athena to a different executive, and his timeline is strict.

    “We are looking to bring on a CEO within two years, either by promoting from within or hiring an external candidate,” Schad said.

    Athena is growing into its new manufacturing plant in Woodbridge, Ontario, a 150,000-square-foot facility next to its original building. Completion of the new $45 million operation should occur about the end of June and machinery production will pick up pace now that the legal distractions have mainly dissipated.

    “With the lawsuit out of the way, we are looking forward to hiring more people and ramping up shipments,” Schad said. “It will be the end of the year before we have achieved a proper production flow through the new facility.”

    New products under development include a 450-ton injection press to extend the firm's machine tonnage options. Cube and rotary-table technologies are being developed for multi-material molding. As well, Athena will debut this year a closure-molding package to complement its PET container molding machine offerings. Schad said Athena decided early on to focus on injection molding machines to make them completely modular. A customer chooses the mold maker who can present its technological options for the customer's application.

    Fighting Husky was expensive in terms of money and time but what bothered Schad most were implications that he stole information from Husky, a company he founded in 1953 and sold to private equity investors in 2007.

    “The most difficult part for me was the stress the lawsuit came with and the questioning of my integrity,” Schad said.

    Countersuit also dismissed

    File photo

    Galt

    Galt noted that the court also dismissed a countersuit in which Schad and the other defendants alleged Husky was disseminating false and misleading statements about Schad and Athena to the plastics industry and beyond.

    “We are pleased that the court dismissed the counterclaim against Husky. Customers choose to work with Husky because they believe in our commitment to providing novel technologies that will enable them to be more competitive, and it is our responsibility to protect the integrity of this relationship,” Galt said.

    “Our intention in bringing these claims to court was to protect Husky's confidential and proprietary information and to ensure that any rewards and customer value that result from our inventions stay within the Husky team.”

    Schad is a member of the Plastics Hall of Fame with a reputation for philanthropy, particularly for environmental causes. The court noted Schad's standing in the industry. The judge's ruling stated: “Mr. Schad has had a lifelong reputation for hard work and uncompromising integrity and honesty.”

    Although the court found Schad and Athena not liable for Husky's claim for damages, the judge commented that if the ruling went the other way, Husky would be entitled only to nominal damages of a dollar. Husky had requested damages of more than C$24.3 million (US$18.7 million).

    Athena claimed Husky's suit cost it C$5 million (US$3.85 million) in lost profit from 2013 to 2015. It had sought damages of up to $50 million, which the court dismissed.

    Husky launched an appeal of the ruling on May 20.

    “We are confident that the appeal will not succeed,” Schad said. He plans to issue a statement on the April ruling the week of May 30.

    Plans at Husky

    While Schad said Athena will move ahead now that the lawsuits have been dismissed, Husky's Galt also talked about future plans.

    “We are particularly excited about our multi-layer barrier technology, which offers tremendous opportunity to explore PET as a packaging material for products needing enhanced barrier properties traditionally packaged in materials, such as glass, carton and aluminum,” Galt said.

    “Plastics packaging growth has been primarily driven by conversion and increasing consumption. Barrier solutions offer the industry an opportunity to open up new markets that can spawn a next generation of conversions and demand growth.”

    He added that Husky is working on several initiatives in melt delivery technology.

    “We are also very excited by advancements in melt delivery technology and what this can do to improve quality, productivity and design freedom in a range of applications that are off limits to current technologies. Systems and mold technologies of the future will need to revolutionize the way a product is produced,” Galt said.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]

    Get our newsletters

    Staying current is easy with Plastics News delivered straight to your inbox, free of charge.

    Subscribe today

    Subscribe to Plastics News

    Subscribe now
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter
    • Instagram

    Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.

    logo-pn-color
    Contact Us

    1155 Gratiot Avenue
    Detroit MI 48207-2997

    Customer Service:
    877-320-1723

    Resources
    • About
    • Staff
    • Editorial Calendar
    • Media Kit
    • Data Store
    • Digital Edition
    • Custom Content
    • People
    • Contact
    • Careers
    • Sitemap
    Related Crain Publications
    • Sustainable Plastics
    • Rubber & Plastics News
    • Urethanes Technology
    • Plastics News China
    • European Rubber Journal
    • Tire Business
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • Processor News
        • Injection Molding
        • Blow Molding
        • Film & Sheet
        • Pipe/Profile/Tubing
        • Rotomolding
        • Thermoforming
        • Recycling
      • Suppliers
        • Machinery
        • Materials
        • Molds/Tooling
        • Product news
        • Design
      • More News
        • What Keeps You Up At Night
        • Mergers & Acquisitions
        • Sustainability
        • Public Policy
        • Material Insights Videos
        • Numbers that Matter
        • Polymer Points Live
      • End Markets
        • Automotive
        • Packaging
        • Medical
        • Consumer Products
        • Construction
      • FYI Charts
        • Current FYI
      • LSR World
      • Multimedia
        • Videos
        • Galleries
        • Podcasts
      • NPE2021
      • K Show
      • ENGEL Sponsored Content
      • Special Reports
        • CEO Issue
        • Best Places to Work
        • Processor of the Year
        • Rising Stars
        • Women Breaking the Mold
    • Opinion
      • The Plastics Blog
      • Kickstart
      • Heavy Metal
      • One Good Resin
      • BRICS and Plastics
      • All Things Data
      • Viewpoint
      • Perspective
      • Mailbag
    • Shop Floor
      • Blending
      • Compounding
      • Drying
      • Injection Molding
      • Purging
      • Robotics
      • Size Reduction
      • Structural Foam
      • Tooling
      • Training
    • Events
      • Plastics News Events
        • Plastics News Executive Forum
        • Plastics in Automotive
        • Plastics News Caps & Closures
        • Plastics in Healthcare
        • Women Breaking the Mold Networking Forum
      • Industry Events
      • Livestreams/Webinars
      • Ask the Expert
      • Polymer Points Live
      • Reifenhäuser Technologies Livestreams
      • 2020 Caps & Closures Library
      • Plastics in Healthcare Library
      • Women Breaking the Mold Networking Forum Library
    • Resin Prices
      • All Resins
      • Commodity TPs
        • Historic Commodity Thermoplastics
      • High Temp TPs
        • Historic High Temp Thermoplastics
      • ETPs
        • Historic Engineering Thermoplastics
      • Thermosets
        • Historic Thermosets
      • Recycled Plastics
        • Historic Recycled Plastics
    • Rankings
      • Injection Molders
      • Blow Molders
      • Film Sheet
      • Thermoformers
      • Pipe Profile Tubing
      • Rotomolders
      • Mold/Toolmakers
      • LSR Processors
      • Recyclers
      • Compounders - List
      • Association - List
      • Plastic Lumber - List
      • All
    • Data Store
    • Directory
    • More+
      • Classifieds
        • Place an Ad
        • Sign up for Early Classified
      • Digital Edition
      • Newsletters
      • Sponsored Content
      • Processor of the Year submissions
      • White Papers