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July 22, 2000

Responses to Safelite Motions to End Contracts with Them
(see previous related story)

Reported by AGRR Magazine:

    Former Vistar executive Jack Kellman has filed a limited objection to the motion made by Safelite Glass Corporation of Columbus, OH, that asks the Federal Bankruptcy Court to allow it to end its contract with him. The objection uses an interesting strategy, in that, it does not deny Safelite's right to reject the contract, but instead asks that Safelite explicitly end Kellman's non-compete so that he may be free to once again work in the auto glass industry.

    In his limited objection, Kellman's lawyers said that Jack Kellman "does not dispute that the question of assumption or rejection is generally left to the Debtor's [Safelite's] business judgment. As such Kellman does not object to the rejection per se.

    "However, the proposed order attached ot the Motion fails to address the status of Kellman's covenant not to compete." That covenant requires that Kellman not enter into or engage in any business similar to Safelite anywhere in the United States until July 1, 2007.

    A motion of objection has been filed by one of the three former Vistar executives to the motion made by Safelite Glass Corporation to end its contractual obligations to the three. In a motion made before the 3rd District Federal Bankruptcy Court in Delaware on July 12, 2000, former employee Thomas O'Brien argues that Safelite should allow his contract to run its full course until completed in December 2000.

    In his objection, O'Brien argues that his "ability to be employed in the industry is somewhat restricted by the employment agreement." He also says that "Rejection of this contract will permit Mr. O'Brien to complete with Safelite in the industry utilizing any knowledge that Mr. O'Brien possesses and would give rise to claims under the Wage Payment and Collection Act.

(c)2000 by Key Communications, Inc., publishers of USGlass and AGRR magazines. All rights reserved. Reprinted with permission.

Case #00-02252-MFW  / Judge Hon. Mary F. Walrath

You can view the court documents (11 pages) of the motions filed by O'Brien and Kellman in .pdf format (90k).

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source: AGRR Magazine & US Bankruptcy Court Delaware District