Longaberger Trial Date Cancelled
Saturday, September, 10, 2016
The trial that had been sent for Tami Longaberger’s lawsuit against the Longaberger Co. was vacated in favor of arbitration. The trial was originally scheduled for the end of August in the Franklin County Court of Common Pleas, but will now proceed to arbitration to settle other claims and disputes. Arbitration is set to begin December.
Nobody is sure yet whether the scope of the arbitration includes all issues in the lawsuit. If so, it could make an eventual trial unnecessary. However, if there are issues that are not handled during the arbitration, there will be a trial following arbitration.
According to court documents, Longaberger sued the company for $1 million in unpaid loans. The company alleged all of her claims fall within the scope of the arbitration clause in the employment agreement between Longaberger and the company.
Longaberger is the former CEO of the company that was founded by her father. She alleged the company borrowed money from her in June 2014 so that it was able to meet its financial obligations. She stated the company cut her salary by $600,000, reduced the level of responsibility she held within the company, gave authority over her to another executive, and caused her to fail to pay taxes for several states.
According to the company, it terminated Longaberger’s employment in May 2015 because she had an inappropriate personal relationship with a subordinate executive and because she refused to work with the sales field. They also accused her of failing to show up at the corporate office and accused her of damaging the company in excess of the amount she was seeking in the lawsuit.