Business NewsLegal Notices
The Clearman Law Firm Announces Patent Infringement, Fraud Lawsuit Against Nation’s Largest Homebuilders and Home Products Manufacturers
2008-08-21 09:01:00
Pulte, Lennar, David Weekley Homes, Honeywell, Whirlpool, others named as
defendants
MARSHALL, Texas, Aug. 21 /EMWNews/ -- Attorneys from Houston's The
Clearman Law Firm are announcing a federal lawsuit filed late yesterday on
behalf of the owner of HomeBuilderShowroom.com against a group of
nationally recognized homebuilders and home products manufacturers. The
72-page petition alleges the defendants committed trade secret theft,
fraud, patent infringement and violated antitrust laws and confidentiality
agreements in order to build a competing Web-based business.
According to the lawsuit filed in the U.S. District Court for the
Eastern District of Texas in Marshall, the owners of
HomeBuilderShowroom.com invented the "Builder's On-Line Assistant" in 1999.
The revolutionary service was created as a means of using the Internet to
connect homebuilders, manufacturers and homebuyers. The company's design
allowed builders to offer standards and upgrades for homes as well as the
opportunity for homebuyers to make their purchasing decisions online using
virtual showrooms.
The owner of HomeBuilderShowroom.com -- OLA, LLC, a privately held
company based in Chicago -- applied to patent the processes associated with
"Builder's On-Line Assistant" in January 2000, and received two related
patents in 2006 and 2007.
The lawsuit alleges that, prior to securing the patents, OLA reached
confidentiality agreements with several of the defendants before providing
a demonstration of "Builder's On-Line Assistant." Relying on the
confidentiality agreements, the petition continues, OLA revealed details
about its methods and service after receiving positive responses from
several homebuilders and manufacturers.
However, according to the complaint, the defendants declined to
purchase the service offered by OLA, and instead formed a new company that
began marketing a nearly identical service in 2005 called "Envision."
The Austin, Texas-based company formed by the homebuilders and home
products manufacturers -- Builder Homesite Inc. -- claims on its Web site
that the "Envision" service has increased homebuilders' profits by $2,000
to $5,000 per home on more than 150,000 homes thus far. The same language
is included on the Web site for New Home Technologies Inc., a Builder
Homesite subsidiary.
Attorney Scott Clearman, lead counsel for OLA and founder of The
Clearman Law Firm, says his client took every precaution to protect its
valuable idea only to see it replicated in violation of the company's
patents and agreements.
"The defendants obviously saw the benefit in OLA's idea, but they
apparently didn't think they needed the company's permission to use its
patents or to honor their confidentiality agreements," Mr. Clearman says.
"It's hard for me to believe that these huge companies didn't know what
they were doing when they basically copied our client's process verbatim
and collaborated to market it themselves."
In addition to Mr. Clearman, OLA also is represented by Brian D. Walsh
of The Clearman Law Firm and Matthew J.M. Prebeg, Edward W. Goldstein and
Holly H. Barnes of Houston's Goldstein, Faucett & Prebeg.
Notable homebuilders named as defendants in the lawsuit include
Atlanta-based Beazer Homes USA, Inc. (NYSE: BZH), Newport Beach,
Calif.-based Capital Pacific Holdings, Inc., Dallas-based Centex Real
Estate Corp., Houston-based Weekley Homes, L.P. d/b/a David Weekley Homes,
Los Angeles-based KB Home (NYSE: KBH), Miami-based Lennar Corporation
(NYSE: LEN), Bloomfield Hills, Mich.-based Pulte Homes, Inc. (NYSE: PHM),
Irvine, Calif.-based Standard Pacific Corp. (NYSE: SPF) and Horsham,
Penn.-based Toll Brothers, Inc. (NYSE: TOL).
Also named as defendants are home products manufacturers Atlanta-based
Georgia-Pacific Corporation, Lakeville, Minn.-based Hearth & Home
Technologies, Inc., Morristown, N.J.-based Honeywell International Inc.
(NYSE: HON), Kohler, Wisc.-based Kohler Co., Taylor, Mich.-based Masco
Corporation (NYSE: MAS), Lewisville, Texas-based Overhead Door Corporation,
Toledo, Ohio-based Owens Corning (NYSE: OC), Greenville, S.C.-based
Progress Lighting Inc., Palatine, Ill.-based Square D Company, Maumee,
Ohio-based Therma-Tru Corp., Federal Way, Wash.-based Weyerhaeuser Company
(NYSE: WY), Benton Harbor, Mich.-based Whirlpool Corporation (NYSE: WHR)
and York, Penn.-based York International Corporation.
A copy of the lawsuit and more information about The Clearman Law Firm
is available at http://www.clearmanlaw.com.
For more information or to schedule an interview with Mr. Clearman,
please contact Bruce Vincent at 800-559-4534 or [email protected].
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