Wednesday, March 5, 2008


Original Source

Wednesday, March 5, 2008


Quixtar was dealt another blow in Georgia. In the Superior Court of White County, the Honorable Chief Judge David E. Barrett ruled that the non-competition clause of Quixtar's contract was "invalid" and will not be subject to any arbitration.

Quixtar's non-compete agreement is ridiculously broad. Here is how it reads:

6.5.4. Every IBO agrees not to Compete, directly
or indirectly, with the business of the Corporation
in the U.S., Canada, and all offshore markets
operating under the Quixtar Independent Business
Owner Compensation Plan during the six-month
period following (a) the voluntary or involuntary
resignation, non-renewal, or termination of that
IBO’s independent business, or (b) any violation by
the IBO of this Subsection 6.5.4., whichever is later.

In response to this IBOs Todd Campbell and Dwayne Turner both sued Quixtar for relief from this slavish clause. In Judge Barrett's opinion signed March 2nd, 2008 he stated:

The scope of geographic coverage of the Rules takes one's breath away.

This is yet another blow to Quixtar and their desire to hide in arbitration. Judge Barrett's remarks were a direct criticism concerning the absurdity of the geographic boundaries of the clause itself. One would need to move to Europe or some a remote island in the Caribbean to escape this globe covering clause. Effectively this clause was considered so unfair that the court decided that it was unenforceable and refused to let it even enter the arena of arbitration. This decision comes on the heals of the Morrison v. Amway case in which a judge overturned an arbitrators award of $6 million dollars on the grounds that the arbitration process was so unfair it was unenforceable. I am not completely clear as to the next step in this process as this ruling is a Interlocutory Injunction. Still, each and every one of these decisions further erodes Quixtar's legal position.

Click here to read the Courts Decision

Posted by The IBO Rebellion at 8:44 PM


Anonymous said...

makes me kind of glad that I just recently moved to Georgia!

Anonymous said...

How low will Q go to stop TEAM. check out the QSSR blog

Anonymous said...

you really wonder how long each one of them took (over a q/a) that they are doing "the right thing"

camera unfades to to q/a legal home:
Hi honey im home!

oh good! did you lie to yourself enough so you could get the pay check today?

i sure did i used the Mein Kompf approach, i learned it from our unmoral and slander department they left me a arm band on my desk today.

oh good honey as long as they never come to get us, we should be safe.

thats right honey....

There is probably alot of drinkin after the day is done over there.

you know to drown the guilt, they are only human.

Anonymous said...

more breaking news over at the IBORebellion site. Seems like Quixtar may have more legal problems. Looks like they've been renewing people without their permission in an attempt to delay the 6-month non-compete for quite a few people.