NEWS

Lawsuit by Tami Longaberger has trial date canceled

Staff report
  • Tami Longaberger’s Aug. 30 trial date against former Longaberger Co. parent CVSL has been canceled.
  • The parties plan to arbitrate "other claims and disputes" in December.

COLUMBUS - Next week’s scheduled trial date for Tami Longaberger’s lawsuit against former Longaberger Co. parent CVSL has been vacated to allow for arbitration.

The trial was scheduled for Aug. 30 in the Franklin County Court of Common Pleas in front of Judge Patrick Sheeran.

The parties plan to arbitrate "other claims and disputes" in December, according to an Aug. 17 journal entry with the court. A new case schedule will be issued after arbitration is completed, according to the journal entry.

It's not clear if the scope of the arbitration includes issues in the lawsuit and could make a trial unnecessary, or if the arbitration addresses only “other claims and disputes,” leaving issues in the lawsuit to be resolved after conclusion of the arbitration.

Messages left for the court and attorneys with both parties were not returned by press time.

Longaberger sued CVSL, now JRJR Networks, for $1 million in unpaid loans, according to the lawsuit filed Aug. 12, 2015.

The Longaberger basket building, former company headquarters on East Main Street in Newark.

JRJR Networks alleged all of Longaberger’s claims fall within the scope of the arbitration provision in the employment agreement between Longaberger and the company.

The former CEO of Longaberger Co., founded by her father, alleged the company borrowed money from her during a cash crisis in June 2014, allowing the company to meet its immediate financial obligations.

In resignation letters, Longaberger stated CVSL cut her salary by $600,000, reduced her responsibilities, gave another executive authority over her and caused Longaberger to fail to pay taxes to several states, forcing some to seek payment from her personally.

CVSL stated last year it terminated her employment on May 27, 2015, because she had an inappropriate personal relationship with a subordinate Longaberger executive, refused to work with the sales field and rarely showed up at the Newark corporate office.

CVSL stated last year that Longaberger damaged the company in excess of the amount she is requesting, alleging breach of fiduciary duty, fraud, negligence, conversion, misappropriation of company funds, civil theft, breach of contract and misappropriation of trade secrets.