April 4, 2005

Judge Rules for QualServ Over ABC

A judge for the state of Missouri ruled that QualServ does not have to resign its membership in the EDI Marketing Group, as sought by Allied Buying Corp.

QualServ officially resigned its membership in ABC on Dec. 29, 2003, and joined EDI in January 2004. On Feb. 10, 2004, ABC filed a lawsuit against QualServ in the Circuit Court of Clay County, Missouri at Liberty.

The lawsuit sought an injunction requiring QualServ to resign its membership in EDI permanently, as well as a financial award covering ABC’s attorneys’ fees.

After a trial earlier in the month, on March 24 Circuit Court Judge James Welsh ruled that under the existing circumstances and given the evidence presented ABC is not entitled to an injunction, nor is it entitled to be compensated for its attorneys’ fees.

ABC General Council Stephen Nagin noted the ruling consists of just one brief paragraph that does not state any finding. This, he said, “leads us to believe the court determined, based on the period of time that elapsed since the complaint was filed, that the circumstances didn’t require a permanent injunction.”

Given the passage of time, Nagin added, ABC is unlikely to appeal the judgment. QualServ, however, is still bound by confidentiality agreements it signed as a member of ABC, he said.

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