Quixtar has suffered a legal setback in their dispute with TEAM. A Texas district court judge has declared that earlier Fifth Circuit reasoning in Morrison et al vs Amway et al that Amway’s contract was “illusory and unenforceable” also applies to current Quixtar contracts.
In essence the Courts declared that because the contract could be unilaterally changed by Quixtar, then they are not valid contracts. One immediate result is that Quixtar is unable to enfoce arbitration in the Simmons et al vs Quixtar Inc case.
It will be interesting to see if there is any response on the Alticor Media Blog. Back in February, the blog stated that the Morrison decisions effect on current cases was “virtually zero”. As it happens, I agreed with them, as the Morrison decision seemed to hinge on the fact that the issues in the case occurred before the relevant changes to the Quixtar and Amway contracts.
It seems we were both wrong.
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