Contact: Larry Sanderson
910-892-6456
lsanderson@warrenoil.com
WARREN OIL COMPANY SUCCESFULLY ENFORCES NON-COMPETE AGREEMENTS IN TEXAS COURT
Dunn, North Carolina -- September 12, 2007 -- Warren Oil Company, Inc. located in Dunn, NC, approximately 30 miles South of Raleigh NC, announces they have been successful in their efforts to protect their company’s proprietary information and enforce their non-compete agreements with three former employees.
On January 13, 2007, two high ranking officers and a sales manager resigned their positions with Warren Oil Company to pursue the purchase of RhinoPak, a contract blender and packager of lubricants, solvent-based liquids, powders and other chemical products based in Highland, Texas. The resigning employees were Edward Davis (Corporate Vice President of Finance for Warren Oil Company, Inc.), Patric Elders (President of Warren Unilube, Inc.), and Steve Lipsey (Sales Manager for Warren Industrial Lubricants, Ltd.). Messer’s Davis, Elders and Lipsey had each, previous to their resignation and decision to purchase RhinoPak and operate it under the ZXP Technologies, Ltd name, signed Employee Noncompetion, Nonsolicitation and Confidentiality Agreements with Warren Oil.
On January 19, 2007, upon learning of the plans of Davis, Elders and Lipsey to purchase and operate RhinoPak as ZXP Technologies, Warren Oil Company, Inc., Warren Industrial Lubricants and Warren Unilube, Inc. filed a lawsuit (Case No. 2007-02965) in the District Court of Harris County, Texas. The lawsuit sought to enforce the terms of the Employee Noncompetition, Nonsolicitation and Confidentiality Agreements signed by Davis, Elders and Lipsey with Warren Oil and enjoin any violations of those agreements.
After a hearing on January 19, 2007, the Honorable District Court Judge Martha Hill Jamison, entered an Order Granting Plaintiffs’ Application for Temporary Restraining Order which specifically enjoined Davis, Elders and Lipsey from soliciting any customer(s) whom they had solicited during the last 12 months of employment with Warren Oil; soliciting or attempting to solicit any employees or contractors of Warren Oil to leave the employment of Warren Oil; and using or disseminating any of Warren Oil’s confidential business information, including customer list, pricing data, formulae, and products. ZXP Technologies, Ltd. was later added as a party to the lawsuit.
The case was tried the week of May 7, 2007 in Harris County Texas District Court by the Honorable District Court Judge William R. Burke, Jr. and pursuant to the Final Judgment entered by Judge Burke, the Non-Competition, Non-Solicitation and Confidentiality Agreements executed by defendants Davis, Elders and Lipsey were found to be valid and enforceable. The Final Judgment enjoins the individual defendants and ZXP Technologies from competing with Warren Oil in the private label/generic oil business segment, the selling of private label and/or generic oil products of the type and nature sold by Warren Oil, and the soliciting or causing to be solicited any customer of Warren Oil for a period of one (1) year ending May 8, 2008. The Final Judgment also enjoins defendants from ever using or disclosing any of Warren Oil Company’s confidential business information. All other issues in the lawsuit were settled to the mutual satisfaction of the parties.
Irvin Warren, Warren Oil’s Chief Executive Officer and President, said, “We are sorry that through no fault of our own, we were put in this unfortunate situation of having to use the courts to protect our assets however, we are excited and pleased with the judgment which we believe strongly reinforces our policies and procedures and, justly protects our company and our employees.”
Warren Oil Company Inc. currently has over $350 million in annualized revenues and is the largest independent Lubricant manufacturer and marketer in the North America. Warren Oil currently owns and operates six efficient and modern lubricant manufacturing and packaging plants with a total throughput capability of over 120 million gallons annually and with over 16 million gallons of bulk oil storage capacity. These six plants are strategically located in Dunn North Carolina, Johnstown Pennsylvania, Benton Alabama, San Antonio Texas, Marion Illinois and West Memphis Arkansas.
Warren Oil markets it lubricants both conventional and synthetic, domestically and internationally, under the WARREN OIL® brand, the LUBRIGARD® brand, the ITASCA® brand, the COASTAL® brand and the GOLD BAND brand. Warren Oil also manufactures and markets private label products for a number of Fortune 500 companies in addition to manufacturing and marketing a full line of automotive and heavy duty chemicals, including anti-freeze and brake fluids, under its proprietary AUTOGUARD® brand name
Contact: Larry Sanderson
910-892-6456
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