May 2004
Brit aims to clean up over stolen vacuum idea
A trial is currently underway in Texas, USA between a British man, John North and giant electronics manufacturer Electrolux.
North claims to have spent 10 years developing a revolutionary form of vacuum cleaner which he then disclosed to Electrolux over the course of several secret meetings. North had ensured that meetings were all held under cover of a non disclosure agreement.
The Electrolux vacuum at the eye of the storm went on sale in August 2000 and has since sold around 3 million units which has meant estimated profits in excess of $100 million for the Swedish company.
Electrolux is strongly denying any infringement whereas North is claiming all the profits plus punitive damages of what he estimates to be between $300 million to $1 billion.
BRIFFA Comment:
It is interesting as to why this case has been brought in the US considering the claimant is British and the Defendant is Swedish. It may be that the damage occurred in the US i.e. that the discussions between the parties took place there, or that Electrolux produced the cleaners there. The other possibility, however, is that Mr North decided to bring the action in the US because he could foreseeably make a larger claim. If the action had been brought in the UK Mr North would not have been able to claim punitive damages such as the minimum of $300 million that he is expecting. This type of "forum shopping" is becoming increasingly prevalent however those angling for larger payouts need to make careful checks on the law in their chosen jurisdiction. Whilst Mr North has persuaded his lawyers to operate on a "no win-no fee" basis, if he loses he may still be liable for Electrolux's legal costs which will undoubtedly be very high.