Law360 (October 30, 2025, 5:45 PM EDT) -- A North Carolina federal judge refused to further sanction a Chinese manufacturer on Wednesday after an American rival accused it of sidestepping court orders that seek information in fulfillment of a judgment exceeding $17 million.

In a one-sentence text-only order, U.S. District Judge Max O. Cogburn Jr. of the Western District of North Carolina said, "As stated in the hearing on the motion, the court will not impose additional sanctions at this time." The decision follows an April request from U.S. pool parts supplier Hayward Industries Inc. to sanction Ningbo C.F. Electronic Tech Co. Ltd. and related parties, with suggestions including the arrest of part owner Richard Chen.

Ningbo is the parent company of co-defendant Blueworks Corp., which was first sued by Hayward, a North Carolina manufacturer of saltwater pool chlorination systems, at the end of 2020. Hayward alleged that Blueworks misled customers about replacement salt cell generators, which produce chlorine in swimming pools by converting dissolved salts, that were sold on Amazon.

Specifically, Hayward said Blueworks made it appear as though Hayward recommended Blueworks' products as good substitutes for its own. After a February 2024 trial, Blueworks was found liable for false advertising and violations of North Carolina's Unfair and Deceptive Trade Practices Act. The resulting $4.9 million verdict eventually tripled under the law to $17.8 million with interest.

Blueworks sought protection under Chapter 11, saying the lawsuit crippled it into insolvency. Judge Cogburn later held Blueworks, Ningbo and Chen in civil contempt for "frustrating" collection efforts on that judgment, and barred the companies from importing and selling in the U.S. until the judgment was fulfilled. In July, Judge Cogburn permitted Blueworks to sell off around $216,000 in excess Amazon inventory.

In the most recent motion for sanctions, Hayward cast Ningbo's litigation tactics as "delay and obstruction" to avoid paying up. Hayward said the import ban clearly wasn't enough, arguing that its Chinese competitor didn't produce information on its assets and bank accounts. Hayward had suggested Chen's arrest as a tool to "persuade" the defendants that they can't ignore court orders.

Counsel for neither party immediately responded Thursday to a comment request.

Hayward is represented by Erik P. Belt, James H. Donoian, Anne E. Shannon and Alexander L. Ried of McCarter & English LLP, and by Patrick G. Spaugh and B. Chad Ewing of Womble Bond Dickinson.

Blueworks is represented by Matthew L. Tomsic, Natalie E. Kutcher and Ashley B. Oldfield of Rayburn Cooper & Durham PA.

The case is Hayward Industries Inc. v. Blueworks Corp. et al., case number 3:20-cv-00710, in the U.S. District Court for the Western District of North Carolina.

–Additional reporting by Hayley Fowler and Ryan Harroff. Editing by Karin Roberts.

For a reprint of this article, please contact reprints@law360.com.