Quixtar suffers a legal setback against TEAM
- Details
- Published on Sunday, 25 May 2008 00:00
- Written by Amway Watch
In one of a number of lawsuits resulting from a dispute between Quixtar and IBOs and former IBOs associated with the TEAM organisation, IBO Ron Simmons sued Quixtar on a number of counts, including Breach of Contract, and Tortuious Interference with Prospective Business Relations.
Part of Quixtar's response was to invoke a clause of the current Quixtar contract requiring IBOs to submit disputes to the Quixtar arbitration process rather than pursue action directly in a court.
On Friday, May 23, 2008, Texas Judge Don Bush, following a recent US Fifth Circuit decision in Morrison vs Amway, declared the arbitration contract to be "illusory" and has allowed Simmons et. al. vs Quixtar Inc. to proceed.
