Note 13 - Commitments and Contingencies

3 Months Ended

Mar. 31, 2018

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

1

3

. Commitments

and Contingencies

The Company has been involved in protracted litigation against a competitor in an action styled Alpha Pro Tech, Inc. v. VWR International, LLC, pending in the U.S. District Court for the Eastern District of Pennsylvania, CV

12

-

1615,

wherein the Company originally sought damages for unfair trade practices and false advertising against the competitor, and the competitor counterclaimed asserting similar claims against the Company.  In

August

of

2017,

the court ruled against the Company on its claims against the competitor. The competitor, as the prevailing party with respect to those claims, subsequently filed a motion seeking to recover from the Company an amount in excess of

$2

million in attorneys’ fees and costs, which motion was granted by the court. In

November

of

2017,

the Company, in consultation with new litigation counsel, filed a motion to reconsider the attorneys’ fee award. The court heard arguments on the motion to reconsider at a hearing in

February

of

2018.

At the hearing, the court encouraged the parties to attempt to settle the matter in advance of a ruling on the motion to reconsider (which motion was ultimately denied), and the parties subsequently mediated the matter in

April

of

2018.

As a result of the mediation and the parties’ further discussions, the parties have reached an agreement in principle for the terms of a settlement of the attorneys’ fee claim and are currently working together to document the settlement terms. The Company has accrued in its financial statements the amount agreed upon for the settlement. The Company is in the process of evaluating avenues for recovery of the settlement amount from former litigation counsel; however, there can be

no

assurance as to the ultimate amount of any such recovery.