Photo Violation Technologies Corp.

Photo Violation Technologies Corp.

November 19, 2008 18:23 ET

Photo Violation Technologies Corp. Personal Defendants Granted $180,000 in Judgment Security for Costs

Photo Violation Technologies Corp.'s Third Update on Natco Lawsuit

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 19, 2008) - Photo Violation Technologies Corp. ("PVT" or "the Company"), a leader in technologically innovative parking solutions, has previously announced that the BC Supreme Court recently issued reasons for Judgment where, due to issues in its case, most notably that Natco did not have clear and compelling evidence against the personal defendants, that Natco International Inc ("Natco") is required to advance $180,000 to the courts as security for costs with respect to the personal defendants.

In a judgment made by the Honourable Madam Justice Griffin dated November 7, 2008 the learned judge stated, "I conclude that security for costs of the personal defendants should be ordered. The defendants have shown that it appears that Natco has no assets to satisfy an order for costs. Natco has been unable to show that it does have exigible assets, or that the personal defendants have no arguable defence, or that an order for security for costs would stifle its claim."

Madam Justice Griffin's judgment goes on to say, "It appears from the evidence that Natco raised the funds it provided to PVT from third party investors. It also appears from Natco's public filings that personal investors are funding the legal costs of the litigation against PVT. As such, it appears that persons backing Natco may have a stake in the outcome of this litigation."

Natco is an Over the Counter Bulletin Board listed company (NCII:OTC:BB) incorporated pursuant to the laws of Delaware, USA, although it is noted in another judgment of B.C. Supreme Court that "it is currently registered as an extra-provincial company in British Columbia, although its registration lapsed for a time."

The judgment goes on to state, "Natco is a self-described "shell" company. Natco's publicly filed report for the quarter ended June 30, 2008, filed August 19, 2008, revealed that Natco has virtually no real assets other than its contingent claim against PVT. It has no active business. Its financial statements show only $2,856 worth of assets, apart from its claim against PVT, and current liabilities of over $1.4 million. The CEO and President of Natco, Mr. Gurm, filed an Affidavit in which he described Natco's value as a publicly trading company on the OTCBB as approximately $800,000. However, at best, this is the value of Natco's shares, something held by Natco' s shareholders and not by Natco itself. Mr. Gurm also briefly described in his Affidavit #1 a business deal between Natco and another company, Lassen Energy, Inc. However, the evidence falls short of establishing that this business deal has become binding, or that Natco has reaped or will reap any financial gains from it that would allow it to pay the defendants' costs in the future. I conclude that the personal defendants have shown that Natco will be unable to pay their costs if Natco's action fails."

Earlier, in an October 2008 judgment, Madam Justice Griffin struck out Natco's statement of claim against PVT and the individual defendants due to its improper pleadings, which were referred to by the learned trial judge as "confusing", "sloppy", "deficient", "inadequate", "poorly written", "hopelessly confused", and "unnecessary and embarrassing."

PVT is extremely pleased with the latest developments with the court case and will keep the public apprised of any future developments.

PVT has posted the complete reasons for judgment on its web site at

Natco filed a Notice of Application for Leave to Appeal the Security for Costs decision in the Court of Appeal Registry on November 17, 2008. It filed a Notice of Application for Leave to Appeal the decision concerning the striking of the Statement of Claim on November 3, 2008.

Photo Violation Technologies Corp. is a private Canadian corporation, with subsidiaries in the US, Europe and Asia that has developed a patented, technologically innovative parking meter system - the PhotoViolationMeter®. Photo Violation Technologies Corp. has successfully forged relationships with Fortune 500 companies and global suppliers such as IBM, Cisco, and Honeywell. These relationships ensure the future success of Photo Violation Technologies Corp. on a global scale. Photo Violation Technologies Corp. is proud to be working with these partners to develop the most sophisticated parking system. Together we are Revolutionizing the Parking Industry® by Perfecting How People Park® through the PhotoViolationMeter® solution. Visit our website for more details on our company.

This document may contain forward-looking statements. These statements present management's expectations, beliefs, plans, and objectives regarding future events and conditions and, as such, involve inherent risk and uncertainties. Actual results could be significantly different from those projected.

Contact Information