Prime earner Jay Bennett has secured a preliminary injunction towards Isagenix.
The injunction was granted on July seventeenth, following filings from the respective events.
Bennett (proper) filed swimsuit final month, after Isagenix terminated his 5 revenue positions.
In a nutshell, Bennett claims he was was terminated with out trigger – in violation of the Isagenix Insurance policies and Procedures he agreed to in 2002 and 2016.
Isagenix claims Bennett agreed to a “no-cause termination provision” when he renewed his contract in 2017.
In handing down the injunction, the court docket cited Ninth Circuit precedent;
The Ninth Circuit has held, nevertheless, that one get together to a contract can not make a binding change to the contract with out notifying the opposing get together of the change and acquiring its assent.
That is true even when the contract gives that one facet could change the contract on occasion.
Isagenix agreed on the preliminary injunction listening to that the present document comprises no communication from Isagenix alerting Bennett to the change within the renewal provisions.
Consequently, the Court docket concludes that Bennett (is) possible to achieve exhibiting that the change isn’t binding on (him), that (his) contracts could possibly be terminated just for trigger, and that non-renewal with out trigger due to this fact was a breach.
The court docket went on to find out that, absent a preliminary injunction, Bennett
would endure substantial consequential damages if their contracts are terminated, totaling hundreds of thousands of {dollars}.
The granted injunction requires Isagenix to revive Bennett’s entry to his 5 distributor accounts. Isagenix can be prohibited from tampering with Bennett’s downline construction.
Pending conclusion of Bennett’s lawsuit, Isagenix was moreover ordered to publish a $1,500,000 bond.
Isagenix has signalled to the court docket it intends to try to drive arbitration. To that finish the corporate was ordered to file a movement to compel arbitration by July twenty eighth.
