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Home AI & Robotics

Robotics company sues Loveland competitor over non-compete agreements, unfair competition – Loveland Reporter-Herald

New York Tech Editorial Team by New York Tech Editorial Team
November 30, 2021
in AI & Robotics
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Robotics company sues Loveland competitor over non-compete agreements, unfair competition – Loveland Reporter-Herald
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What began most recently as a disagreement over COVID-19 policies has resulted in a lawsuit between an Ohio company with operations in Fort Collins and a competing Loveland company, both in the robotics industry.

Lincoln Electric Automation Inc., formerly known as Wolf Robotics LLC, has sued Vectis Automation Inc., based in Loveland, and Todd Scarpella. Scarpella is formerly the lead mechanical engineer and staff manager at Lincoln and currently the head of the Vectis engineering team, according to the lawsuit.

As outlined in the lawsuit, Scarpella left Lincoln for Vectis Oct. 22 over an alleged disagreement over COVID policies. Seven days later, Lincoln warned Vectis and Scarpella in cease-and-desist letters about what it considered violations of non-compete and confidentiality agreements. When that act didn’t result in a resolution, Lincoln sued Vectis and Scarpella on Nov. 24.

Lincoln, with headquarters in Fort Loramie, Ohio, said in the lawsuit that the two companies are competitors in the design, manufacture and sale of custom robotics systems. Scarpella had access to confidential customer, design, and proprietary information, which he agreed to protect when signing a “Proprietary Information, Inventions and Restrictive Covenant Agreement,” the lawsuit said.

While Scarpella was the latest Lincoln staff member to move to Vectis, the lawsuit cites the names of eight other former employees, including Andrew Akey, the current president and a co-founder of Vectis.

Akey told BizWest he would have no comment on the lawsuit.

“Vectis’ recruitment of the former Lincoln employees puts Vectis at an unfair competitive advantage because Lincoln entrusted these employees with valuable confidential and proprietary information, including product design, modularity, and construction, customer lists, product descriptions, purchase history and pricing,” the lawsuit states.

The agreements Scarpella signed restrict not only confidential information but prohibit working for a “conflicting business,” participating in developing competing products, soliciting “covered customers,” or recruiting Lincoln employees, the lawsuit alleges.

The case seeks a preliminary and permanent injunction against Scarpella and Vectis, a ruling of breach of contract against Scarpella and tortious interference against Vectis. It seeks damages, fees and court costs.

The case is Lincoln Electric Automation Inc., Fort Collins, f/k/a Wolf Robotics LLC v. Vectis Automation LLC and Todd Scarpella, case number 2021cv30862.

© 2021 BizWest Media LLC

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