Competing BMX businesses back in court after injunction
Wednesday, February 04, 2009
SPRINGBORO — A multimillion dollar business dispute between a Springboro-based BMX bike distributor and two former employees is headed back to a Lebanon court.
The 12th District Court of Appeals announced Tuesday, Feb. 3, that it had upheld a temporary injunction ordered by Judge James Heath of Warren County Common Pleas Court.
The injunction bars Cincinnati-based Two Zero Distribution from continuing efforts to take business from DK Products, a Springboro-based company doing business as System Cycle.
On Tuesday, DK lawyer John Stachler verified that Two Zero could have earned about $4.5 million a year in revenues had it succeeded.
In 2007, DK intercepted an e-mail from a Two Zero principal to one of the BMX companies it hoped to woo away, outlining the plan to "take all of System's best assets, the best brands, and all of the customers."
Two Zero principals, Matthew Miller and Charles Johantges, were fired by DK owner William Danishek.
DK also filed the lawsuit seeking to block Two Zero from contacting DK's customers and misusing the company's proprietary information and trade secrets.
"By the grace of God, the e-mail was intercepted," Stachler said Tuesday.
In June 2008, Two Zero, Miller and Johantges — none of whom signed noncompete clauses with DK — urged Heath to postpone a ruling on a permanent injunction while the appeals court in Middletown considered the appeal of his temporary injunction.
In October 2008, both sides agreed to delay proceedings until the 12th District court ruled on the appeal.
Miller declined comment until he reviewed the 12th District ruling. Lawyers for Two Zero couldn't be reached for comment.
Contact this reporter at (937) 225-2261 or lbudd@DaytonDailyNews.com.
