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Pacific Scientific Co. Settles Breach-of-Contract Suit

Just three weeks after vowing to “vigorously defend itself against this action,” Pacific Scientific Co. said Thursday that it has settled a breach-of-contract lawsuit arising from its sale of a line of mechanical seals.

The Newport Beach-based maker of electronic measuring equipment declined to disclose the exact amount of the settlement with Texas-based Accuflex Inc. but said it would reduce third-quarter earnings by about 10 cents a share. That would equal about $542,000.

Accuflex had sought actual damages of $7 million and punitive damages of $70 million.

Pacific Scientific officials said the settlement involved no admission of liability by the company and they continue to maintain that the suit was without merit.

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The company sold the mechanical seal line, produced by a Pacific Scientific division, to Accuflex in 1990 for $200,000 and later sold other assets of that same division to John Crane Inc., an Accuflex competitor.

In its breach-of-contract suit, Accuflex named both Pacific Scientific and John Crane Inc., alleging that the sale to John Crane violated a non-competition agreement executed when Pacific Scientific sold Accuflex the product line.


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