Callaway Golf Seeks Additional Court Order Against Former Vice President
2.10.1999, 13:05
Carlsbad, Calif. (PROTEXT) - Callaway Golf Ball Company, awholly-owned subsidiary of Callaway Golf Company (NYSE: ELY),took the unusual and aggressive step today in its lawsuit againstformer Vice President, Sales, Mark King, of filing a Petition forWrit of Mandate in the California Court of Appeal, FourthAppellate District, Division One. In the Petition, Callaway GolfBall requests that the Appellate Court either instruct the trialcourt to order Mr. King immediately to stop any further work forcompetitor Taylor Made Adidas Golf Company or, in thealternative, expedite the resolution of Callaway Golf Ball'sappeal raising the same issue. In an order signed on September 27, 1999, the Superior Courtin Vista, California, granted Callaway Golf Ball an injunctionrestraining Mark King "and all those acting in concert with him"from "using, disclosing, copying or transmitting any tradesecrets of Callaway Golf Ball Company regarding the design,manufacture, sale and marketing of golf balls." However, theSuperior Court did not grant Callaway Golf Ball's request thatMr. King be ordered to stop all further work for Taylor Madepending the outcome of Callaway Golf Ball's arbitrationproceeding against Mr. King. Callaway Golf Ball initiated thearbitration proceedings in August 1999 alleging that Mr. King hadviolated his written employment agreement, which was to runthrough the end of 2000, and that Mr. King had or would violatethe Uniform Trade Secrets Act. On September 29, 1999, Callaway Golf Ball filed its Notice ofAppeal from that part of the Superior Court's ruling denying therequest that Mr. King be prevented from working at Taylor Made.Because it can often take up to two years for an appeal to beheard, Callaway Golf Ball today filed a Petition for Writ ofMandate to seek an earlier action by the Court of Appeals. "We are confident that our position on appeal is correct, andthat we should ultimately prevail," said Steve McCracken,Executive Vice President and Chief Legal Officer of CallawayGolf. "However, the normal appellate process may move too slowlyfor us to get the relief we deserve in time for it to bemeaningful. For example, our new golf balls may well be on themarket before the matter could even be briefed in the Court ofAppeal. For that reason, we have sought what might be consideredemergency relief in the Court of Appeal to speed up the process.We recognize that such Writs are seldom granted, but we stronglyfeel that our case presents one of those unusual and importantsituations where a Writ is appropriate." "As we announced earlier this week, we intend to establish inthe appellate courts that the legal doctrine of 'inevitabledisclosure' - which is recognized in many jurisdictions outsideCalifornia - is the law in this state as well," Mr. McCrackencontinued. "Mr. King has extensive knowledge about our business,and is in a position where he will now be directing a significantcompetitor's business in immediate and direct competition withus. We recognize and appreciate the fact that the Superior Courthas ordered Mr. King not to disclose or use our trade secrets inhis new job. However, unless he has the unheard of ability tocompartmentalize his brain or self-induce selective memory loss,we do not understand how he can perform his new duties withoutinevitably using the information he learned from us. That is whywe think the courts should take the next step and require thatMr. King not work for our competition." For more information about Callaway Golf Company, please visitthe Company's website on the Internet at www.callawaygolf.com. If you would like to receive Callaway Golf's press releasesvia e-mail in the future, please send your request to:newslist@callawaygolf.com. ots Original Text Service: CallawayGolf Company Internet: http://www.newsaktuell.de Contact: LarryDorman of Callaway Golf Ball Company, 760-931-1771 Company NewsOn-Call: http://www.prnewswire.com/comp/124825.html or fax, 800-758-5804, ext. 124825 Web site: http://www.callawaygolf.com
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