TEAM: Legal Update – November 7, 2007

Original Source


Legal Update – November 7, 2007
wednesday, november 7, 2007

Simmons et al verse Quixtar
As mentioned in the original Legal Update, the ruling by Magistrate Judge Bush was objected to by Quixtar and was being reviewed by an appointed Federal Judge, the name of the judge is the Honorable Michael Schneider.

On Monday, November 5, 2007 Judge Schneider affirmed (agreed) with Judge Bush’s ruling and issued a Preliminary Injunction against Quixtar (win for IBOs) that essentially prohibits them from disparaging the Team business to the Plaintiffs and their Downline, prohibits them from interfering with the Plaintiff’s and their Downline’s business relationship with Team, prohibits them from suspending or terminating Plaintiffs and their Downline, and it prohibits them from refusing to pay bonuses to Plaintiffs and their Downline.

However, Quixtar continues, in my opinion, to be in violation of the orginal court order and now this one by refusing to pay Q12 bonuses and QBI bonuses earned by the Plaintiff’s and some of their Downline. Apparantely they are also refusing to pay the Q12 or QBI bonuses for hundreds of other IBOs or former IBOs that earned these rewards but happen to be affiliated with the Team leadership training system.

Further, Judge Schneider (as was recommended by Judge Bush) ordered the original complaints in this matter – which include multiple contract questions – and any further disputes in this case to arbitration in Texas with retired Magistrate Judge Robert Faulkner. Personally, I look forward to this process – and I assume Quixtar does as well – so that we can get some independent direction on the various Rules and contract issues that are in dispute. This is a reasonable way to settle business disputes – as long as it is a level playing field for all and that the scales of justice do not unfavorably tilt towards either party because of their stature or financial reserve.

There is no time table yet set on the beginning of the arbitration but I will let you know as soon as it is set.


California Case
It appears that some headway is being made on getting this case further along the arbitration path though admittedly the wheels of justice in this case are turning slow. Again, I believe all of the actual proceedings are confidential but I understand that some preliminary meetings ordered by the arbitrator have been set.

More to come as I have the information.

Posted by Ron Simmons at 8:08 AM