As was noted above, the Grand Rapids Press is covering this case.
Interesting articles:
************
link here:
http://blog.
html
content of above link here: (note last paragraph)
Judge sides with Quixtar in all three cases
Posted by The Grand Rapids Press August 24, 2007 11:22AM
Categories: Breaking News
A Kent County judge has sided with Quixtar in three cases that
tested the Ada-based direct marketer's ability to enforce non-
compete clauses, non-disclosure agreements and control over
information its distributors can sell and utilize.
Circuit Judge Paul Sullivan this morning issued a preliminary
injunction against several of Quixtar's former Independent Business
Owners, preventing them from using their former Quixtar networks for
any business-related purpose.
Quixtar is the name Alticor Inc. uses for its American direct sales
unit, known elsewhere as Amway.
The injunction says the former high-level distributors must abide by
confidentiality and non-compete clauses until their disagreements
with the company can be arbitrated.
Sullivan also sided with the Quixtar Independent Business Owners
Association International, granting an injunction against six former
IBOs, including prominent distributors Orrin Woodward, Chris Brady
and Billy Florence.
The order enforces confidentiality agreements that prevent them from
disclosing events that took place at association functions. The
organization sought the injunction because the former IBOs were
using the Internet and legal filings to distribute their versions of
confidential meetings.
In a third case, one that could have wide ramifications for
thousands of Quixtar IBOs, Sullivan said Quixtar has the right to
forbid them from disseminating business sales materials created by
Brady's and Woodward's TEAM organization. Sales of such materials
are represent a significant portion of business for many IBOs.
************
link here:
http://www.mlive.
37/1187877775286550
Content of link here:
Quixtar battle lines drawn
Thursday, August 23, 2007
By Chris Knape and Shandra Martinez
The Grand Rapids Press
GRAND RAPIDS -- In the war over the future of Amway Corp., Kent
County Circuit Judge Paul Sullivan's courtroom is where the first
battle will be decided.
Arguments were expected to continue this morning in lawsuits filed
to keep several former distributors for Quixtar, the name for
Alticor Inc.'s Amway business in the United States, from disclosing
confidential information as part of what the company and a
distributors' association claim is a smear campaign.
Ada Township-based Alticor and the Independent Business Owners
International Association filed suit to prevent former high-profile
distributors Orrin Woodward and Chris Brady, among others, from
releasing information they say could cause irreparable harm to
Quixtar and other distributors, known as IBOs.
Sullivan heard arguments for more than three hours Wednesday
afternoon.
The cases spawned from Quixtar's dismissal of at least 15 IBOs after
the company said they refused to fall in line with its business
rules.
The IBOs then filed suit in California, alleging Quixtar's
noncompete clauses, part of those rules, were invalid as an illegal
pyramid scheme.
The lawsuit claims Quixtar relies almost solely on internal
consumption of its products by its IBOs.
The suit alleges a pyramid scheme because, in order to make money,
IBOs must continually recruit people for their "downline," for which
higher level IBOs receive commission-like payments.
Wearing stickers proclaiming "Burned by QUIXTAR!," distributors
supporting Woodward, Brady and others showed they could take the
heat, protesting for hours in 90-degree temperatures.
Rallying at the courthouse
The predominantly male crowd of hundreds of distributors, mostly in
dark suits with red ties, lined the sidewalk in front of the Kent
County Courthouse, creating a gauntlet of support for the
defendants.
The crux of Quixtar's arguments against Woodward, Brady and their
organization called TEAM (which stands for Together Everyone
Achieves More) focused on noncompete agreements all IBOs must sign.
Quixtar attorneys said the agreement prevents the former IBOs from
tapping their networks of IBOs for other ventures or to sell
motivational products.
Stephen Turner, the Independent Business Owners International
Association'
level IBOs had breached pledges and contracts in which they swore
not to divulge what happens at association board meetings. He is
seeking an injunction to prevent further dissemination of
confidential information.
The defense attorneys argued the California case would decide
whether Quixtar's confidentiality agreements are valid. They claimed
there was not enough evidence to show the company would be
irreparably harmed without the temporary injunctions they are
requesting.
In the IBOIA case, defense attorney John Anding argued the group was
trying to squelch free speech and the information the association
called confidential was already in the public domain.
Arguments were slated to resume at 8:30 this morning. Both sides
declined comment.
Even the crowd of supportive IBOs, a group not known for being shy
about talking, was coached to smile but not to applaud or cheer --
or speak to the news media.
After arrival of the defendants, most of the crowd followed into the
building, creating a logjam. About 70 people filed into the
courtroom and another 200 filled a jury-assignment room, where the
court hearing was simulcast.
Several people walked around with walkie-talkies, coordinating the
show of support. The supporters drove in from as far as Detroit and
northern Michigan.
Distributors show support
The legal battle isn't about money for the former high-level
distributors but about looking out for people on their team, said
distributors standing across from the courthouse.
"We are here because we believe in them," said one distributor from
Rockford, who declined to give his name.
A mother of five who came with her children in tow, said her loyalty
ran deep for Woodward, of Grand Blanc, a co-founder of TEAM.
Quixtar "has changed our whole family's life. I know God sent this
person Orrin to us through this business," she said.
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