A biotech company seeking to stop grapes from rotting on the vine says its former research partner, Oregon State University, sent it sickly plants that killed a deal to commercialize the budding biotechnology, court papers allege.
Vinoculate, Inc. filed a lawsuit Monday seeking $9.7 million from OSU in Benton County Circuit Court.
The California-based company said in the lawsuit it joined forces with OSU in 2010 with plans to edit the DNA of existing and largely harmless plant viruses.
If proven fruitful, those modified viruses would inoculate plants from three of vintners' biggest fears -- leafroll virus, red blotch virus and powdery mildew infections -- with profits to be reaped from winemakers and raisin growers, the suit says.
Vinoculate alleges it paid OSU roughly $2.3 million to fund the research, and by 2018 had netted substantial interest from a large Central Valley nursery, Duarte, who wanted to see the new biotech in action.
The lawsuit claims a university researcher packed up more than 180 plants and shipped them to the nursery without informing Vinoculate that his work had produced only a "failed technology." The vines were already visibly unwell when they hit the mail, the suit says.
"OSU knew... that the grapevines were being shipped to Duarte as a critical step on the path to Vinoculate's commercialization," the lawsuit says. "The sickly appearance of these plants came as a great shock to Duarte and Vinoculate."
Duarte and Vinoculate's deal fell through after the unwelcome unboxing, the suit says.
OSU spokesperson Rob Odom said the university disputes the allegations but declined to further comment.
Vinoculate's attorney, Joseph Mabe, said he looks forward to arguing the case in court.
-- Zane Sparling covers breaking news and courts for The Oregonian/OregonLive. Reach him at 503-319-7083, zsparling@oregonian.com or @pdxzane.