Well, “thrown out” is probably not a technically correct legal term, but the result is the same. Back in 2009 a pair of disgruntled IBOs, husband and wife Kerry Murphy and Cheryl Rhodes, of Cloverdale, British Columbia, filed a class action lawsuit against Amway Canada. This of course made news with the anti-Amway brigade, but funnily enough some other news didn’t – way back in November of last year, the Court sided with Amway and said their complaint should go through Amway’s arbitration system.
I should clarify – not their complaint. In what has to be one of the least successful attempts at a class action ever, Murphy and Rhodes launched this lawsuit and promoted their class action through press releases and websites. The result? Well, in a class action, one of the tasks of the Judge is to determine if there is a sufficiently large group of people with the same grievance. In May 2011, his wife Cheryl Rhodes curiously withdrew from the class action. So we’re down to one, and in the judgement, the Judge had this to say –
the plaintiff has only provided evidence of one claim – his own for the amount of $15,000. …. Absent any convincing evidence of multiple claims or multiple defendants, the issue of the reasonableness of a partial stay is simply not triggered.
So it became his complaint. Just Kerry Murphy. No Cheryl Rhodes, and nobody else stood up to offer further claims. It gets even worse for Mr Murphy-
THIS COURT ORDERS that the defendant’s Motion to Stay and to Compel Arbitration is allowed. Costs shall be awarded to the defendant.
It seems to me highly likely that the defendants (Amway) costs for a case like this are going to far, far exceed the $15000 Murphy claimed he lost doing Amway during his four times as an IBO. I notice looking through the court records that Robert FitzPatrick provided an affidavit in support of Murphy and Rhodes. I have little doubt that anti-MLM zealots like FitzPatrick encouraged this action.
FitzPatrick and his ilk are causing real financial damage to people by leading them astray with their falsehoods and anti-mlm zealotry.
Murphy has appealed the case. I feel sorry for him.