Note 8: Contingencies
During the ordinary course of business, the Company encounters various legal claims which, in the opinion of management, will not materially affect the Company's financial position, results of operations or cash flows.
Powin Energy has been named as a defendant in Global Storage Group, LLC v. Virgil L. Beaston and Powin Renewable Energy Resources, Inc., Case No. 1202-1712 in the Circuit Court of the State of Oregon for the County of Multnomah on February 8, 2012. The complaint alleges, as to Powin Energy, the misappropriation of trade secrets and intentional interference with existing or prospective economic relationship arising from the alleged breach by the co-defendant Virgil L. Beaston of the Operating Agreement of Global Storage Group, LLC. Mr. Beaston is an employee of Powin Energy. Damages are sought in the amount of $30 million with a prayer for injunctive relief and leave to seek punitive damages. The Company and Powin Energy believe there is no basis for the allegations and intends to defend against the action.
On May 24, 2012, Powin Energy filed its Answers contesting the claims made by Global Storage Group LLC ("GSG"). On May 25, 2012, Defendant, Virgil Beaston, filed his Answer, Counter claims and Third party Complaint impleading GSG principles Sam Leven and Harvey Weiss. The parties are conducting document discovery, scheduling depositions and awaiting responsive pleading from Messrs. Leven and Weiss. A trial date is expected to be set in March, 2013.