Echelon action over alleged hijacking of US data centre plans should be thrown out, say former business partners
Echelon stated in the court complaint, filed by its parent company, Nimol, that the US firms had 'improperly used' confidential information to 'co-opt the data-centre development plans' and complete the project without the developer. The company accused MPD and MDT of breaching agreements 'with fraudulent intent'.
Last week, MPD and MDT filed a response at the US court rejecting the allegations, calling for the court to dismiss three of the causes of action in the case. These included breach of contract accompanied by a fraudulent act, violations of the South Carolina Unfair Trade Practices Act, and breach of fiduciary duty.
The two American companies argue Echelon's complaint was nothing more than "a thinly veiled and redundant breach of contract claim'.
'Even from the complaint alone, it is clear that the parties were involved in a complicated transaction that ultimately fell apart,' the lawyers wrote. 'An unsuccessful business venture is not an unfair trade practice.'
They contend the complaint lacks the 'particularity' required to sustain fraud claims under US laws, fails to demonstrate any impact on the wider public interest, and does not establish the existence of any special relationship that could give rise to fiduciary duties.
The dispute centres on 'Project Diamond', a 2023 initiative under which the defendants were to secure properties to be sold to Echelon for development into data centres, with MPD providing electrical services.
In Echelon's initial complaint, the data centre developer claimed it was 'prepared to invest billions of dollars' in developing and leasing large-scale data centres in four counties of the Pee Dee Region of South Carolina. The Irish company's proposed projects would have been 'some of the largest economic investments in South Carolina history", the company added.
In April, Echelon alleged it came into possession of a promo flyer for a proposed data centre 'substantially the same' as its own
Echelon said it began exploring locations in the US for expansion in 2023 and met with a senior executive of MPD and MDT. It claimed to have worked with MPD and MDT for over a year, alleging the businesses gained 'intimate' knowledge of its inner workings.
At the 'eleventh hour', Echelon alleged MPD and MDT made 'outrageously off-market demands' and took steps to 'intentionally destroy' the projects from happening by refusing to close on critical property. Echelon claims it tried to salvage the deal, but the Americans refused to work in good faith.
In April, Echelon alleged it came into possession of a promotional flyer for a proposed data centre in one of the areas it planned to develop. It claimed parts of the plan were 'substantially the same' as its own.
Echelon claims MDT and MPD improperly used its confidential information to plan and advertise this proposed data centre.
The Irish firm is seeking a judgment against MDT and MPD, as well as damages. gg
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