A Summerville water heater maker that sought bankruptcy in order to contest a large legal judgment agreed Tuesday to dismiss the filing.
Eccotemp Systems LLC recently settled its dispute with a plumbing business that was awarded $757,000 by a Dorchester County jury last month. That agreement made the bankruptcy filing unnecessary, the companies said in a court document Tuesday.
Terms of the settlement are confidential, said Columbia attorney Eric Bland, who filed the original complaint on behalf of AMO LLC.
U.S. Bankruptcy Court Judge David Duncan said at a hearing Tuesday in Charleston that he would dismiss the Eccotemp filing.
Upstate-based AMO installed 75 Eccotemp-made tankless water heaters in homes in the Midlands. Some of the units froze, causing water pipes to burst in some of the houses, according to the 2010 lawsuit.
A jury sided with AMO and awarded it $757,000 on March 1.
A few weeks later, Eccotemp sought bankruptcy protection to halt all bill-collection proceedings against it and to buy some time to appeal the lawsuit judgment.
Geoff Levy, Eccoptemp’s attorney, said “it is business as usual” now that the bankruptcy has been dismissed.
“The appeal is moot as a result of the settlement,” Levy said in a written statement.
On its website, Eccotemp said its water heaters are sold at more than 2,000 retailers in North America, Europe and the Middle East.
Contact John McDermott at 937-5572.
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