Klean wins lawsuit against ReKlaim, Pyrolyx joint venture partner for failing to pay its property taxes
Klean Wins ReKlaim Legal Case
Klean Industries Boardman, Inc. has won the court case that it brought against ReKlaim Inc. in the Circuit Court of Morrow County, Oregon.
The Court entered a default order and default judgment against ReKlaim for the full amount of damages sought by Klean. Specifically, the Court entered a default judgment against ReKlaim for breach of contract, breach of the covenant of good faith and fair dealing, fraud, and fraudulent concealment. As a result, if ReKlaim were to file for bankruptcy protection, the judgment for fraud is unlikely to be discharged.
This clarifies a comment made by the editor of TRR in Podcast 29 with Bolder Industry’s Tony Wibbeler regarding delays with Permitting, in fact the delays at Boardman were due to unpaid property taxes by ReKlaim.
Jesse Klinkhamer, Klean’s CEO commented “I’m very pleased with the outcome of the lawsuit against ReKlaim. It is no surprise that we received a default order and default judgment against ReKlaim, even after its attempted delays. While this is a win, it is still upsetting that ReKlaim and its management team conduct themselves in this manner, which in our opinion is reprehensible.
“Considering what Klean experienced in Boardman, Oregon after acquiring the site from ReKlaim, it is our view that no one should have been surprised at all that ReKlaim’s new joint venture facility with Pyrolyx in Terre Haute, Indiana went bankrupt before it even entered commercial operation. In light of the prior failed ventures, we believe the writing was on the wall before they even began efforts in Indiana.
“Sadly, it is likely the shareholder and investors will pay the price for what appear to be bad decisions by ReKlaim, Pyrolyx, and their executives.
“While it is unlikely that Klean will recover the damages awarded by the Court, this process shows that progress is being made in regard to holding corporations accountable for their poor behaviour. We believe that it is time to hold businesses, owners, and executives accountable for their actions.” Klinkhamer went on to say, “We can only hope in the future people consider the outcome of working with these types of businesses, that they act accordingly and take the right measures and steps to protect their investors and shareholder alike.
“With this now behind us, there are exciting times on the horizon for Klean and the Port of Morrow as detailed design and engineering is near completion for the new facility, and we intend to break ground in the first quarter of 2021 with plant construction planned for competition in less than 24 months.”