Judgment to be Entered in Favor of ACE DuraFlo in Federal Lawsuits Against Nu Flow and Others

New Franchise Locations across the United States is a Result of Strong Demand for Revolutionary Patented Piping Technique


ACE DuraFlo Systems LLC (www.aceduraflo.com), an innovator in the development and application of pipe restoration technology, announced today that the company has experienced record growth for the third quarter. Growth was marked by the addition of new franchises in the San Jose and San Diego, California markets, while Florida also showed growth with new franchises opening in Jacksonville and Fort Lauderdale.

The recent ACE DuraFlo growth can be linked to the high-profile changes in the real estate market as consumers are now looking for more cost-effective alternatives to home improvement. Gone are the days when homeowners could quickly and easily pull cash out of equity to finance expensive home projects. With the ACE DuraFlo system, consumers benefit from total pipe restoration without the high cost and intrusive nature of older, competing techniques. This innovative repiping technique can return a home’s critical network of pipes to like-new condition, neutralizing mineral build-up and preventing further pipe deterioration.

“As consumer awareness for ACE’s ePIPE process grows, so does local demand from plumbing companies looking to offer ePIPE as a more affordable alternative to the huge expense associated with total repiping,” explains Al Dee, president of ACE DuraFlo Systems. “People are thrilled to hear there is a non-invasive solution to saving a building or home’s plumbing system. We are encouraged by consumer response and by the correlating growth numbers experienced this past quarter.”

Believing that less expensive solutions to home repair will grow even bigger in 2008, Dee commented that he is “even more enthusiastic about the company’s potential growth than ever before.”

Two Federal lawsuits filed by plaintiffs ACE DuraFlo® Systems, LLC (“ACE”) and Pipe Restoration Technologies, LLC (“PRT”) (Case Nos. SACV05-1039 DDP (CTx) and CV05-5857 DDP (CTx)) have been resolved and Judgment will be entered in favor of Plaintiffs and against defendants Nu Flow America, Inc.; Nu Flow Technologies (2000), Inc.; Bill Howe Plumbing, Inc.; Pipe Renovation Systems, Inc.; American Pipe Lining Inc. (“APL”); Bill Howe Sr.; Bill Howe Jr.; and Steven Howe.

Plaintiffs were asserting the following claims in the case:

1) Breach of Contract,

2) Breach of the Implied Covenant of Good Faith and Fair Dealing,

3) Trademark Infringement,

4) Intentional Interference with Prospective Economic Advantage,

5) Intentional Interference with Contract,

6) Unfair Competition,

7) Civil Conspiracy, and

8) Defamation.

On the eve of trial, defendants offered to have judgment entered against all defendants, including a money judgment in the amount of $238,000. Plaintiffs accepted defendants’ offer. Pursuant to applicable rules, Judgment will be entered against all defendants.

Previously, the Court had ruled in ACE’s favor on its claim for declaratory relief that ACE did not infringe United States Patent no. 5,707,702 (the “’702 Patent”), which is owned by the United States. The Court found defendant APL had wrongly accused ACE of infringement of the ‘702 patent. The Court also found the case to be “exceptional” under the Patent Laws and awarded ACE attorneys’ fees.



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