Dow to be paid $1.1 billion by Nova Chemicals as part of Canadian court judgment

Dow Inc. disclosed Monday that a Canadian court has ordered Nova Chemicals Corp. to pay Dow C$1.43 billion ($1.08 billion) for damages through 2012 related to the jointly-owned ethylene asset in Joffre, Alberta. The payment was ordered to be made on Oct. 11, but the judgment is subject to appeal. Dow said it expects to record a gain related to the judgment in the third quarter. Dow's stock, which was still inactive in premarket trading, has slipped 0.3% over the past three months, while the SPDR Materials Select Sector ETF has gained 1.2% and the Dow Jones Industrial Average has tacked on 0.8%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.