SOURCE: Channell Commercial Corp.

Channell Commercial Corp.

January 14, 2016 19:00 ET

Federal Court Allows Pursuit of Fraud Claims Against Wilmington Machinery Incorporated and Its President Russell J. La Belle

LOS ANGELES, CA--(Marketwired - January 14, 2016) - Channell Commercial Corporation ("Channell" or the "Company") of Temecula, California, announced that on December 8, 2015, District Court Judge Dolly M. Gee issued an order allowing Channell Commercial Corporation to proceed with claims of fraud against Wilmington Machinery, Inc. and its President, Russell La Belle. Wilmington and La Belle did not oppose Channell's motion to amend its complaint to include the fraud claims.

Channell sued Wilmington in California Superior Court on September 23, 2014, and the case was removed on October 30, 2014 to the United States District Court for the Central District of California (Case No. 5:14-cv-02240). Channell's lawsuit against Wilmington stems from Wilmington's sale to Channell of what Channell contends was a defective $2.1 million structural foam molding machine. Channell's amended complaint alleges that Wilmington and La Belle knew of the machine's defects at the time of the sale, but chose to go forward because they needed money from the sale to obtain cash to pay off certain financial liabilities. Channell's case, which seeks millions of dollars in damages, equitable relief, and punitive damages, is scheduled to begin trial on May 24, 2016.

Channell is represented by DLA Piper LLP.

About Channell

Channell is a leading manufacturer of outside plant (OSP) underground closures, vaults and pits for the broadband, telecommunications, power, signal and lighting, gas and other low voltage, copper coax and fiber cabling networks. 

Channell also manufactures a comprehensive line of thermoplastic and metal fabricated enclosures, and advanced copper connectivity and fiber solution products. The Company is headquartered in Temecula, California with secondary operations in Rockwall, Texas and international operations in Australia, Canada, Mexico and the United Kingdom. The Company's website is www.channell.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking information concerning the Company's plans to pursue litigation. The statements address future events and conditions and are subject to risks, uncertainties, and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, results could differ from those expressed or implied by these forward-looking statements. Factors that could cause actual results to differ from those indicated in the forward-looking statements include, but are not limited to, the risk that litigation is an inherently complex and uncertain process so it cannot be predicted with accuracy, whether the Company will ultimately prevail on its claims, or the amount of time and resources that will be necessary to resolve the claims. Forward-looking statements are made as of the date of this press release. Except as required by law, the Company does not undertake an obligation to update its forward-looking statements to reflect future events or circumstances.

Contact Information

  • Jim Duvall
    951-719-2600