Paradigm was granted favourable rectification of a contract between the two companies with the result that compensation is owed to Paradigm by Surgicraft for termination of the contract as the result of a change-of-control provision.
Paradigm made its claim for rectification and damages against Surgicraft in 2008 following the abrupt termination of Paradigm’s exclusive US distribution rights in respect of Surgicraft’s Stalif TT spinal fusion devices earlier that same year.
Surgicraft Group, a UK based medical device company, and its subsidiaries, was acquired in 2008 by Centinel Spine (formerly Raymedica) a portfolio company of Viscogliosi Brothers, based in New York City.
Earlier the current month, Surgicraft defaulted on an order from the English High Court to pay Paradigm significant interim damages and a subsequent hearing is scheduled to assess further damages and legal fees due Paradigm.
Paradigm president and CEO Mike Neill said that the High Court appropriately ruled that Surgicraft did not honor its contractual obligations and we are very pleased with the decision.
“We will aggressively pursue all damages awarded to us by the High Court to the fullest extent of the law in England and we will continue that pursuit in the US if necessary,” Neill said.
“Previous to the acquisition of Surgicraft, all parties involved in the transaction were made aware of the compensation we would be due. It is reprehensible that we are forced into this position but we are committed to protecting ourselves and to a complete recovery of the damages that we suffered as a result.”
