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The dispute between the two companies arose when Zoll’s subsidiary terminated a product development agreement claiming AutoMedx failed to perform.

Omar Ford

July 30, 2018

1 Min Read
Zoll Wins $5.4M in Contract Dispute with AutoMedx
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Zoll Medical said it was awarded about $1.8 million in damages plus $3.6 million in attorneys’ fees, costs, an interest for what it claims was a breach of contract by AutoMedx. The Chelmsford, MA -based company added that the arbitrator also denied all of AutoMedx’s claims against it and its subsidiary Advanced Circulatory Systems Inc. (ACSI).

The dispute arose from ACSI’s termination of a product development agreement. Zoll claims that ACSI ended the contact because of AutoMedx’s failure to perform.

“We are pleased that the arbitrator found ACSI’s termination of the AutoMedx contract to have been proper and that ACSI was entitled to a refund from AutoMedx of its development costs, as well as an award of a substantial amount of the attorneys’ fees and costs that Zoll incurred in the arbitration” said Jonathan Rennert, CEO of Zoll. “It is unfortunate that AutoMedx chose to pursue litigation, as the arbitrator completely exonerated Zoll and ACSI from any liability to AutoMedx whatsoever.”

Last year, Zoll was involved in a patent lawsuit with Philips Electronic. Both companies were found guilty of patent infringement in the case that involved three defibrillator-related Philips patents and two Zoll patents. The jury awarded Philips $10.4 million but then ordered the company to pay Zoll $3.3 million for its own infringement. That net haul of $7.1 million paled in comparison to the $217 million that Philips was seeking.

About the Author(s)

Omar Ford

Omar Ford is MD+DI's Editor-in-Chief. You can reach him at [email protected].

 

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