OTTAWA, Sept. 26, 2012 /CNW/ - Thermal Energy International Inc. (TSXV:
TMG), a leading provider of custom energy and emission reduction
technologies for energy intensive industries worldwide, today announced
that the Court of Appeal for Ontario awarded the Company with a victory
in its longstanding civil action with its former President, Thomas
Hinke. The Court unanimously dismissed Mr. Hinke's appeal from a
recent summary judgment decision of the Ontario Superior Court (in its
entirety) and ordered Mr. Hinke to pay the Company $8,000 towards its
In a statement of claim filed on October 25, 2005 Mr. Hinke alleges
that, among other things:
Mr. Hinke was wrongfully dismissed from his employment;
Amounts are owed to Mr. Hinke in respect of unpaid loans and advances;
Further amounts are owed for among other things lost reputation and
defamation, infliction of mental suffering, abuse of process and
punitive and aggravated damages.
Total damages were claimed in the amount of approximately $4 million,
plus an as yet undetermined value of share options, interest and legal
costs. The Company filed a defense and counterclaim seeking damages
from Mr. Hinke in the amount of $5 million which stem from alleged
breaches of Mr. Hinke's fiduciary obligations to the Company,
oppressive conduct toward the Company and its shareholders and
In May, 2010, Mr. Hinke brought a motion for summary judgment, seeking
judgment on part of his claim. In the motion, Mr. Hinke sought the
$398,737 allegedly owing as a result of wrongful dismissal and
calculated as 24 months of salary, commissions, and related benefits;
$618,810 in alleged unpaid loans and advances; and
$87,500 in stock options which are alleged to have vested.
The motion was heard on September 6 and 7, 2011 and on October 18, 2011
a decision was rendered. In its decision on the motion for summary
judgment the court:
Allowed a claim for wrongful dismissal but assessed the damages for the
plaintiff's wrongful dismissal not at 24 months but at the equivalent
of 18 months of pay in lieu of notice of termination; declined to fix
the amount of the damages, suggesting instead that the parties try to
agree on the amount; stated that in the absence of the parties'
agreement on the amount of damages, the quantification of damages is to
be referred to a Master; stayed the execution of the partial summary
judgment pending the determination of the outstanding claims at trial;
Dismissed the plaintiff's claim for alleged unpaid loans and advances of
The court permitted the remainder of Mr. Hinke's and the Company's
claims and counterclaims to proceed to trial. Mr. Hinke's remaining
claims include, among other things, lost reputation and defamation,
infliction of mental suffering, abuse of process and punitive and
Mr. Hinke appealed this decision on the motion for summary judgment and,
as noted above, on September 25, 2012 his appeal was dismissed and in
addition the Court of Appeal ordered Mr. Hinke to pay the Company
$8,000 towards its legal costs related to the appeal.
Given the court ordered stay on execution of the partial summary
judgment (which stay was upheld on appeal), Mr. Hinke may not compel
Thermal Energy to pay him damages (which damages have yet to be
quantified) until the remaining issues have been determined or a court
orders otherwise. Until the remaining issues are determined, it is
unclear what the net balance payable between the parties will be and to
which party it is to be paid. In its reasons for decision the court did
not comment on the validity or likely outcome of any of these other
The Company has made, and continues to make, attempts to settle this
action on a reasonable basis including two attempts at mediation.
Nonetheless, at this point the Company continues to believe that the
$190,000 provision taken during the fiscal quarter ending November 30,
2009, remains a reasonable estimate of the possible net liabilities
resulting from the claim and counter claim. However, if the remaining
matters proceed to trial the outcome remains subject to the findings of
the Court which may award an amount that is more or less than the
Company's current estimate of potential net liabilities.
About Thermal Energy International Inc.
Thermal Energy International Inc. is an innovative cleantech company
providing a variety of proprietary and proven energy efficiency,
emission reduction, water efficiency, and bioenergy products and
solutions to the industrial, commercial and institutional markets
worldwide. Thermal Energy is also a fully accredited professional
engineering firm, and can offer advanced process and application
engineering services. By providing a unique mix of proprietary products
together with process, energy, environmental, and financial expertise
Thermal Energy is able to deliver significant financial and
environmental benefits to its customers.
Thermal Energy's products include; GEM® - Steam traps and condensate return systems, FLU-ACE® - Direct contact condensing heat recovery, and Dry RexTM - Low temperature biomass drying systems. These award winning products
are effective in a wide variety of industries and applications and have
an excellent track record of longevity, proven reliability and
performance providing significant energy savings, reduced GHG
emissions, improved water efficiency, lower maintenance costs, improved
product quality and increased production efficiency.
Thermal Energy International Inc. has offices in Ottawa, Canada as well
as Bristol, UK, United States, Italy and China. To find out more about
Thermal Energy International Inc. (TSX-V: TMG), visit our website at http://www.thermalenergy.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Thermal Energy International Inc.
For further information:
President and CEO
Thermal Energy International Inc.
The Equicom Group