TEAM: Judge rules against Quixtar in complaint against ex-distributors

Original Source

Judge rules against Quixtar in complaint against ex-distributors
11/9/2007, 4:22 p.m. EST
The Associated Press

GRAND RAPIDS, Mich. (AP) — A judge has ruled against direct marketing giant Quixtar Inc. in its request for a contempt finding against a group of dissident ex-distributors.

Quixtar is the name that Alticor Inc. uses for its U.S. and Canadian direct sales. Alticor is phasing out the Quixtar name and replacing it with Amway, its former name that remained in use outside North America.

Quixtar sued the ex-distributors, saying that they must abide by confidentiality and noncompete clauses until their disagreements with the company can be arbitrated.

In August, Kent County Circuit Judge Paul J. Sullivan issued a preliminary injunction that prohibited the ex-distributors from using their Quixtar networks for business purpose. He also ordered them to refrain from "disparaging or intentionally diminishing" Quixtar's reputation.
Quixtar went back to court Sept. 21, saying the defendants had violated the injunction by competing against the company and by harming its reputation.

The judge ruled Thursday that there was insufficient evidence that the distributors had intentionally violated his earlier order. He said an arbitrator could decide later whether Quixtar is entitled to damages.

Alticor is based in Kent County's Ada Township. It had $6.3 billion in sales last year.