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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report
(Date of earliest event reported): August 14, 1998
SEQUA CORPORATION
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(Exact name of registrant as specified in charter)
Delaware
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(State or other jurisdiction of incorporation)
1-804 13-1885030
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(Commission File No.) (FEI Number)
200 Park Avenue, New York, New York 10166
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(Address of principal executive office) (Zip Code)
Registrant's telephone number
(including area code): (212) 986-5500
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Item 5. Other Events
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In the action commenced on July 11, 1995 by United
Technologies Corporation (UTC) through its Pratt & Whitney division
against Chromalloy Gas Turbine Corporation (Chromalloy) in the
United States District Court for the District of Delaware, the
Court issued a Memorandum Opinion and Order with respect to the
issues tried in December, 1997 on Chromalloy's counterclaim for
certain breaches of the parties' 1985 Repair Agreement. The Court
ordered United Technologies to "fulfill its obligations under the
February 4, 1985 Repair Process Agreement with Chromalloy Gas
Turbine Corporation" and to provide Chromalloy with the data and
parts required to develop and perform Pratt approved repairs for
the newest models of the major jet engine series manufactured by
Pratt & Whitney. The Court ordered United Technologies to provide
Chromalloy with updated technical data on an ongoing basis and to
evaluate and grant repair approvals to Chromalloy to repair
components for the most advanced models of several Pratt & Whitney
engine families, including the 4000 series, the PW 2000 series, and
the V2500 series. The Court's 55-page Opinion identified eight
separate contract breaches by United Technologies and granted
Chromalloy all the relief it had requested with regard to Pratt's
failure to provide repair approvals. Chromalloy did not seek
monetary damages on this issue. The Court also held that United
Technologies had violated the Repair Agreement by failing to notify
Chromalloy of the more favorable licensing terms, including lower
royalty rates that Pratt had negotiated with other component repair
suppliers and to give Chromalloy the opportunity to accept the same
terms. The damages on that claim will be tried at a later time.
In rejecting United Technologies claim that Chromalloy was
licensed to repair only the engine models and part types that
existed at the time the 1985 Agreement was signed, the Court noted
that the parties, " intended to create a contract with very
flexible terms, that would have all but encompassed new technical
developments without the need for constant amendment of the
Agreement." United Technologies has filed a motion asking the
Court to issue a ruling that this judgment is final and, therefore,
immediately appealable. United Technologies has also filed a
motion for temporary stay of the Court's order pending briefing on
their motion and for a permanent stay of the Order pending the
appeal. Chromalloy is contesting both United's motion for final
judgment and immediate appeal and its motion seeking a stay.
In the suit brought on October 17, 1996 by Chromalloy against
UTC in Delaware Federal Court for alleged infringement of
Chromalloy's patents, the Court has moved the trial date from
September 3, 1998 to October 13, 1998.
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Item 7. Financial Statements, Pro Forma Financial Information
and Exhibits
None.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
SEQUA CORPORATION
By:/s/ Stuart Z. Krinsly
Stuart Z. Krinsly
Senior Executive Vice President
and General Counsel
Dated: September 10, 1998
