The lawsuit was thrown out due to lack of jurisdiction, but documents filed in the case of Super-Tek USA, LLC vs. O'Sullivan Industries, filed March 1 in U. S. District Court for the Northern District of Illinois, charge O'Sullivan with failing to live up to the terms of a three-year contract with the Illinois company.
As noted in the April 12 Turner Report, O'Sullivan is being sued by Out of Sight Litter Box Co., a South Carolina firm, for breach of contract.
According to the Illinois lawsuit, "On or about Oct. 24, 2005, Super Tek and O'Sullivan entered into a three-year "Take or Pay Exclusive Arrangement. Rick Walters, then Chief Financial Officer of O'Sullivan, and Michael Lewis, Managing Member of Super-Tek committed to manufacture and furnish O'Sullivan with certain minimum quantities of chair mats each year for a three-year period. Super-Tek also granted O'Sullivan the exclusive right to distribute Super-Tek manufactured chair mats in North America for the term of the agreement."
The lawsuit claims O'Sullivan Industries failed to live up to its agreement, and asks for $8,476,274.45 on one count and $311.961.98 on another.
Good Luck trying to get blood from a turnip.
ReplyDeleteRandy -
ReplyDeleteHow come we have to check your blog for information about O'Sullivan instead of the Lamar Democrat. They're running really useful (sarcasm intended!) "stories" that are nothing more than press releases from government agencies about e-mail and phone scam nonsense when all the while there are MOUNTAINS of stories that they could be working on related to the closure of the town's biggest employer!!!
Looks like Malone won't get to add this one to his list of "successes". Of course, he got paid, so maybe he will consider it a success. Now that the announcement is out and the Company is dead, it will be interesting to see how many people still want to blame the Lamar city council for doing their job and not allowing O'Sullivan to defer utilities. Based on the current lawsuits, O'Sullivan is stiffing everyone. So, Calton-haters, still think that Lynn did a bad thing by not breaching his fiduciary duty?
ReplyDeleteBet the "flat earth" society in Lamar will find someone to blame for their lack of jobs. Fact of the matter is that any chance the company had died when the million dollar man did. After he was gone, the remaining penpals didn't even know when to rotate thumbs! THere were three groups of people left there: Those who remain oblivious, those who saw and didn't care, but wanted to ride it out and those who didn't want to be bored with the facts. That was my favorite group. Anybody who didn't join in the groupthink was the devil!
It is unfortunate that this debacle has come to this type of end. Many good people lost their jobs over the last several years and now. Lamar will survive, though. Over the years Epoch has absorbed a number of O'Sullivan's finest and I am sure that there are a number of employers in the area who will benefit greatly from getting some of these employees.
There are at least 2 other companies in Lamar that have already been affected by the news of this closure. One of which has had to layoff all of its 2nd shift and more than half of its 1st shift and is now working only a skeleton crew during the day.
ReplyDeleteThis layoff is affecting 50 good people.