FOR IMMEDIATE RELEASE
October 10, 2007

COURT RESOLVES DISPUTE OVER USE OF DOCUMENTS REMOVING OBSTACLES TO FORWARD PROGRESS

            CLEVELAND, OHIO:  Judge Christopher A. Boyko, United States District Court for the Northern District of Ohio, Eastern Division, recently issued an Order granting as revised a Protective Order sought by Stanley/Mac governing the use of documents produced in our discovery, in the pre-1993 (non-arbitration) Class Action. The Motion for Protective Order was filed on February 22, 2007, and then referred to United States Magistrate Judge David S. Perelman.  Magistrate Judge issued a Memorandum and Order on April 2, 2007.

            “We finally have a ruling that will permit the case to move forward!  This ruling clears the way for Mac to make available to us three warehouses worth of documents,” Andre’ F. Toce, Plaintiffs’ Lead Trial Counsel said, reacting to the ruling.  Judge Boyko, while appearing to rule for Stanley in granting its motion, did not agree to language proposed by Magistrate Judge Perelman, which would have required Plaintiffs to abide by an advance notice requirement.   “That would have impaired our clients’ rights in Arbitration.  We see these as dual-track cases,” said Mr. Toce.
 
            The Court also rejected Stanley’s/Mac’s position that documents obtained by those Plaintiffs who remain in federal court cannot be used at all by the Plaintiffs who are ordered to Arbitration. Instead, the Court allowed the discovery in the pre-1993 cases, and deferred to the arbitrator who will ultimately be selected on the use in the Arbitration of documents and testimony that were produced in the federal case to Plaintiffs’ counsel.

            This ruling only applies to those Plaintiffs in federal court.  Presently, that is people who signed their distributorship agreements before 1993, before the mediation/arbitration provision was added.  Nevertheless, all of our MTLG clients will benefit from the pre-1993 class action that remains pending in the Ohio federal court, and that will not be sent to Arbitration.

As to distributors who joined Mac since 1993, we filed an objection to Judge Perelman’s recommendation and ruling ordering all remaining plaintiffs into Arbitration, on April 16, 2007.  That objection remains “under submission” for the past six months.  Until Judge Boyko rules on the objection, we cannot be certain which Plaintiffs will ultimately be ordered to Arbitration, nor can we really move those cases forward.

            “This case was filed on September 20, 2004.  Over three years later, we have just been able to begin discovery, and we do not have a ruling on the arbitration issue.  I think it is fair to say that none of the parties or their counsel, based on our experience, anticipated that the case would move at this pace,” said Joseph Arshawsky, a member of the MTLG.  Mr. Toce added, “Defense counsel clearly takes the position that Mac will not discuss any amicable resolution until Judge Boyko rules on these issues.  We agree this position serves us as well.”

            “We deeply sympathize with all of our clients, and the hardship that they have been going through, since their Mac distributorships have ended.  Please understand that we are doing everything that we can, but we must wait for the Court’s rulings to best serve our clients.  There simply is no future in trying to rush or force a judge into ruling on matters held under advisement,” according to Elwood C. Stevens, one of the Lead Counsel in the MTLG.  Lance Houghtling, a member of the MTLG added:  “We understand that our clients are eager for updates on the case, but when there is no news, there is no news and we have to just wait.” 

Bill Latta, MTLG member, reminds his clients that “we do not get paid until or unless we obtain a recovery for our clients, so we are as eager as they are to resolve the matter expeditiously.  In the meantime, the lawyers of the MTLG have invested several hundred thousand dollars in litigation costs, and hundreds of hours of attorney time, just to get to this point.”

            “The next steps involve gathering and reviewing massive amounts of documents, proceeding with the deposition that we have noticed.  Only then will we be in a position to seek certification of one or more classes.  Our experts, Mike Jorgenson and the consultants working with him, who have talked extensively with our clients, and gathered documents, have been gathering more documentation and evidence, digitizing and organizing all of these documents in this massive and complex case.  Unfortunately, the discovery process could take a few more months, if not years, if no amicable resolution can be reached,” explained Mr. Toce.  “Additionally, our cases should get stronger as we nail down Mac’s position on their documents.”
 
The MTLG is a consortium of law firms and lawyers, experienced in class actions, tool distributor litigation or both.  Those include:  The Toce Firm, A.P.L.C. (Lafayette, LA and Miramar Beach, FL); Law Offices of Elwood C. Stevens, Jr., A.P.L.C. (Morgan City, LA); Arshawsky Law Firm, P.C. (Albuquerque, NM and Miramar Beach, FL); Attorney Lance Houghtling (Talala, OK); and Attorney W. B. Latta, Jr. (Boise, ID).

Contact:  Elwood C. Stevens, Jr.
          Ph: (985) 384-8611
http://www.mac-tools-class-action-lawsuit.info/