Judge Upholds BellSouth-Sprint Ruling
Posted on: Monday, 10 February 2003, 06:00 CST
Source: Associated Press
ATLANTA (AP) - A judge agreed Monday to extend a restraining order stopping BellSouth Corp.'s No. 2 executive from accepting the top post at rival Sprint Corp.
In a written ruling, Fulton County Superior Court Judge Stephanie Manis said BellSouth vice chairman Gary D. Forsee was bound by terms of a nondisclosure clause in his contract, which prevents him from revealing any confidential information to a competitor.
However, Manis dismissed part of BellSouth's argument that Forsee would violate a noncompete agreement in the contract by becoming Sprint's chief, calling that provision "overbroad and unenforceable."
The language in Forsee's contract prohibits him from working for a BellSouth competitor for 18 months after leaving the Atlanta-based regional Bell, although Manis faulted the wording.
BellSouth contends that Forsee could not accept the Sprint job without disclosing key information related to BellSouth's business.
The case is to be heard in arbitration over the next 30 days.
Sprint and BellSouth sell long-distance service in nine Southeastern states and compete nationally for wireless customers.
"We're obviously pleased with the temporary restraining order staying in place for at least 30 days," BellSouth spokesman Jeff Battcher said.
Forsee's attorneys did not immediately return calls for comment.
BellSouth sued Forsee last month after he sought to leave to accept the chief executive position at Sprint, replacing William Esrey.
BellSouth is trying to prevent Forsee from divulging "intellectual capital," including company pricing plans and merger and acquisition information.
"The potential harm to BellSouth, in the event that Forsee does disclose any confidential information, could be incalculable," Manis said in her 16-page ruling.
BellSouth and Cingular Wireless also filed lawsuits last Friday in federal court accusing Overland Park, Kan.-based Sprint of interfering in Forsee's contractual obligations.
Sprint officials declined to comment on Monday's ruling and the lawsuits.
Forsee, a former Sprint executive, oversees BellSouth's domestic operations and is also chairman of Cingular Wireless, BellSouth's joint venture with SBC Communications Inc.
As the case heads into arbitration, Forsee has continued to serve in his position. Should BellSouth win in arbitration, it is unclear what Forsee's role in the company would be, Battcher said.
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On the Net:
Bell South: http://www.bellsouth.com
Sprint: http://www.sprint.com
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Copyright © 2003 The Associated Press. All rights reserved. The information contained in the AP News report may not be published, broadcast, rewritten or redistributed without the prior written authority of The Associated Press.
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