Fuyang-based Flying Eagle is in conflict with U.S.-based Epic Kayaks, which is co-owned by Olympic gold medalist Greg Barton, over the relocation of molds belonging to Epic.
In 2005, Epic Kayaks, a producer of high-performance paddles and kayaks headquartered in Charleston, South Carolina in the United States contracted to move their production to Fuyang, an industrial city south of Shanghai, to a factory operated by Flying Eagle, a Chinese company that manufactured the rowing shells that were used by many national teams at the Beijing Olympics. However the relationship turned sour.
Barton, the two-time Gold medalist and paddler, stated that disagreements with Flying Eagle involving project management and pricing forced Epic to find a new factory in Fuyang. They informed Flying Eagle that they were going to move and agreed in principal on a separation arrangement.
To continue manufacturing kayaks, Epic needed to take their boat molds to the new factory. But four months after agreeing to the move, Flying Eagle still refused to release Epic's molds and equipment without receiving large fees that Epic say would force them out of business.
Barton is reported to have spent three months in China trying to negotiate a settlement. The demands of Flying Eagle kept escalating, including clauses that could potentially leave Epic vulnerable to penalties up to USD1 million.
Epic finally decided that they cannot comply with Flying Eagle's demands and has filed a lawsuit with the intermediate court in Hangzhou rather than agree to pay what it regards as ransom and sign an unbalanced agreement.
