CARLSBAD, Calif., Sept. 27 /PRNewswire/ -- A Superior Court Judge in
Vista, California, signed and entered a preliminary injunction today against
Mark King, the former Vice President, Sales, of Callaway Golf Ball Company.
The court order requires that "Mark King and all those acting in concert with
him are hereby restrained and enjoined from using, disclosing, copying or
transmitting any trade secrets of Callaway Golf Ball Company regarding the
design, manufacture, sale and marketing of golf balls."
Callaway Golf Ball Company, a wholly-owned subsidiary of Callaway Golf
Company (NYSE: ELY), sued Mr. King after he attempted to join a competitor,
Taylor Made Adidas Golf. Callaway Golf Ball asked the Court to issue an order
preventing Mr. King from disclosing or using Callaway Golf Ball's trade
secrets. Callaway Golf Ball also asked the Court to order that Mr. King not
commence work for Taylor Made until there was a full hearing on Callaway Golf
Ball's breach of contract claims before an arbitrator, as required by the
written employment agreement between Callaway Golf Ball and Mr. King.
Callaway Golf Ball believes that Mr. King's actions, including things he had
done as an officer of Callaway Golf Ball while actively pursuing a job at
Taylor Made, proved that he could not be trusted to preserve the
confidentiality of Callaway Golf Ball's secrets absent a court order.
Callaway Golf Ball also believes that it would be inevitable that Mr. King
would use or rely upon information obtained while working at Callaway Golf
Ball in his new position, even if he did not explicitly disclose such
information to others.
The Court granted the injunction against Mr. King's use or disclosure of
Callaway Golf Ball's information. However, it did not order that Mr. King
forego reporting to work at Taylor Made.
"We are pleased that the Court has issued an order preventing the
disclosure or use of our confidential information by Mr. King," said Steve
McCracken, Executive Vice President and Chief Legal Officer of Callaway Golf.
"As a result of this action by the Court, Mr. King operates in his new
position at his own peril, and he must be careful not to use or disclose our
information in any way. We intend to watch this very closely."
"We also intend to appeal that part of the Court's ruling that permits Mr.
King to commence work at Taylor Made," Mr. McCracken continued. "We intend to
establish in the appellate courts that the legal doctrine of 'inevitable
disclosure' -- which is recognized in many jurisdictions outside California --
is the law in this state as well. We are prepared to pursue this matter to
the California Supreme Court, if necessary."
The Court's written order was signed four days following a telephonic
ruling by the Court on September 23, 1999. At that time Taylor Made issued a
press release announcing the portion of the Court's ruling that permitted Mr.
King to commence work at Taylor Made. However, the Taylor Made press release
failed to note that the Court had granted Callaway Golf Ball's request for a
preliminary injunction against Mr. King's use or disclosure of confidential
information. "Taylor Made's September 23, 1999 press release may have given
some people, including some of our shareholders, the impression that our
litigation against Mr. King had not been successful to date," said Ely
Callaway, Founder, Chairman and CEO of Callaway Golf. "In my opinion, Taylor
Made's press release creates a misleading impression, and I would like to set
the record straight. We have obtained a written court order against Mr. King
'and all those acting in concert with him' -- an order which cannot be ignored
by either Mr. King or his new employer. Our victory in obtaining this court
order shows that we have acted diligently and prudently to protect the
Company's trade secrets and to insure the sanctity of the Company's contracts
-- and we intend to continue to pursue our legal rights."
For more information abut Callaway Golf Company, please visit the
Company's website on the Internet at http://www.callawaygolf.com.
SOURCE Callaway Golf Ball Company
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Related links:
http://www.callawaygolf.com
Company News On-Call:
http://www.prnewswire.com/comp/124825.html or fax,
800-758-5804, ext. 124825
CONTACT:
Larry Dorman of Callaway Golf, 760-931-1771
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