Dana Wants $20 Million Trade Secrets Claim Dismissed
Bankrupt auto parts maker Dana Corp. objected to a $20 million claim filed by one of its suppliers, alleging that the company’s underlying claims — which include allegations of trade secret theft — are lacking in merit, Bankruptcy Law360 reported yesterday. Dana argued that the $20 million claim filed by one-time supplier Jasco Tools Inc. results from Jasco’s discontent over Dana’s pre-petition business to resource parts from Jasco to an alternative supplier when the contract between Dana and Jasco expired. Jasco filed the claim based on a 1995 purchase agreement between the two companies under which Jasco provided precision-machined casings to Dana for five years. In 1999, the companies met to renegotiate the deal, although Dana also solicited bids from several other companies. Based on a bidding process, Dana awarded the contract to Nationwide Precision Products Corp., which prompted Jasco to bring a suit alleging that Dana and Nationwide “participated in a scheme to divert the business away from Jasco, as evinced by Nationwide’s hiring of two former Jasco employees.

