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Michigan Court Rules in Favor of Quixtar in Team Dispute
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A Michigan court has ruled in favor of Quixtar in the company’s legal dispute with former IBOs Orrin Woodward and Chris Brady, founders of the Team training organization, plus other IBOs involved in the Team organization. Kent County Circuit Judge Paul Sullivan on August 24 issued a preliminary injunction against several of Quixtar's former IBOs, preventing them from using the previous line of sponsorship information to sell or promote competing products and from otherwise interfering in the business of Quixtar or its IBOs. It also orders them not to recruit other IBOs to compete with Quixtar’s business, and not to disparage Quixtar.
The court considered three separate cases involving Quixtar; Woodward, Brady, and Team; and the Independent Business Owners Association International (IBOAI.)
In a related case, the judge ordered Woodward, Brady and other former IBOs to abide by the terms of their confidentiality agreements with the IBOAI, and not to make unauthorized disclosures of the IBOAI’s confidential information. The IBOs are required to return all confidential documents and data to the IBOAI.
Finally, a third case concerned Quixtar’s right to enforce a ban of promotion or sale of Team-produced training materials by IBOs. In the opinion of Judge Sullivan, Quixtar has the legal authority to determine Team to be an unauthorized distributor of BSM, to preclude IBOs from further distributing Team materials, and to require IBOs to confirm their intent to comply with Quixtar’s decision regarding Team BSMs or face potential sanctions. .
Quixtar had received a temporary restraining order from a Kent County Court on August 10 preventing Woodward and Brady from disparaging Quixtar and damaging its reputation, soliciting IBOs for another business opportunity, and requiring them to return to Quixtar its proprietary and confidential Line of Sponsorship (LOS) data.