ARCA's Complaint Against JACO is Dismissed by Summary Judgment

Business Wire, Jan 9, 2009

SAN FRANCISCO -- JACO Environmental, Inc. of Everett, Washington ("JACO") has prevailed in a lawsuit brought by a competitor, Appliance Recycling Centers of America/California ("ARCA"). The Complaint, filed in the U.S. District Court in Santa Ana, California in November of 2004, alleged that JACO unlawfully patented and unlawfully claimed development of JACO's refrigerator and freezer recycling process, and that ARCA had been competitively harmed by JACO's statements and patent.

JACO, represented by Hendricks & Lewis, PLLC, of Seattle, Washington, and Ropers Majeski Kohn & Bentley of Los Angeles, California, vigorously contested ARCA's allegations and, on January 6, 2009, The Honorable Chief Judge Alicemarie H. Stotler issued an order of summary judgment and a judgment of dismissal that provided in part: "It is Ordered and Adjudged: that plaintiffs (ARCA) shall take nothing from defendants (JACO), that judgment for defendants is granted and that defendants (JACO) shall recover their costs of suit."

"We are very pleased with the Court's decision and happy to put this behind us," said JACO President Terry Jacobsen. "We will now be able to focus more fully on managing our expanding business and making major contributions to the reduction of greenhouse gases."

Recycling household appliances, including refrigerators and freezers, is a major part of JACO's business. Working in partnership with major utility companies, JACO collects used freezers and refrigerators from consumers and recycles 95 percent of each unit. Since 2001, JACO has recycled more than 500,000 units, preventing approximately 1.5 million tons of carbon dioxide and carbon dioxide equivalent from entering the atmosphere.

Older refrigerators and freezers pose a significant environmental threat on several levels. Kept running, these units require three to four times as much power as newer, more energy-efficient models. And if people get rid of old fridges improperly, these kitchen friends can become environmental enemies.

During the metal shredding process, foam insulation inside refrigerator shells and refrigerants in the cooling system can release ozone-depleting/global warming chemicals into the atmosphere. These substances accelerate climate change if improperly handled at the end of their useful life.

"Out of the many ways people can help protect the environment, recycling refrigerators ranks near the top in terms of a person's ability to make a lasting, positive difference. It works for the planet, it works for a person's wallet and it works for conserving our precious resources," said Michael Dunham, director of energy and environmental programs for JACO.

JACO has contracts with 32 utilities in 14 states and the company operates 11 recycling centers throughout the United States. JACO was twice awarded the Stratospheric Ozone Protection Award from the U.S. Environmental Protection Agency in 2004 and a Best of the Best Award in 2007 by the EPA on the 20th anniversary of the Montreal Protocol. For more information, please contact O. Yale Lewis, Jr. of Hendricks & Lewis, PLLC, in Seattle, Washington at (206) 624-1933.