Litigation

3 Months Ended

Mar. 31, 2015

Litigation [Abstract]

Litigation

8.             Litigation

As previously disclosed by Servotronics, Inc. certain claims had been pending between the Company and a Former Employee of the Company in connection with the termination of the Former Employee’s employment agreement. On September 30, 2014 an award was issued under the rules of the American Arbitration Association in favor of the Former Employee. The arbitrator issued a final award on February 23, 2015 and the Company paid the award on March 6, 2015. See Note 7, Commitments and Contingencies, of the accompanying consolidated financial statements for additional information regarding the arbitration proceeding and award.

The Company has pending litigation relative to leases of certain equipment and real property with a former related party, Aero, Inc. Aero, Inc. is suing Servotronics, Inc. and its wholly owned subsidiary and has alleged damages in the amount of $3,000,000. The Company has filed a response to the Aero, Inc. lawsuit and has also filed a counter-claim in the amount of $3,191,000. The Company has not considered the risk of loss to be probable, but is unable to reasonably or accurately estimate the likelihood and amount of any liability or benefit that may be realized as a result of this litigation.

There are no other legal proceedings which are material to the Company currently pending by or against the Company other than ordinary routine litigation incidental to the business which is not expected to have a material adverse effect on the business or earnings of the Company.