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08-11-2001 07:22 AM #1
Callaway settles ERC lawsuit with Royal Canadian GA
Posted: CNNSI - Friday August 10, 2001 7:36 PM
TORONTO (AP) -- Callaway Golf and the Royal Canadian Golf Association said Friday they have settled a lawsuit over the equipment manufacturer's ERC II Driver.
The sides agreed to dismiss a lawsuit first filed in May 2000 in U.S. District Court by Callaway for "unfairly, improperly and unlawfully interfering with the commercial launch" of the ERC II forged titanium driver.
"We can do more to benefit the game of golf in Canada by settling any past differences and working more closely together," the sides said in a joint statement.
The case didn't go any further after the RCGA successfully argued it has no offices and does no business in California, and therefore shouldn't be held accountable in a U.S. court.
"That's when a lot of the discussion started," said Chad Schella, the RCGA manager of communications.
The RCGA, following the same rules as the United States Golf Association, maintains the club is "non-conforming" for sanctioned events due to the trampoline-like response of the ball off the club face.
"Really, it's just through negotiations," Schella said of the settlement, which involved both sides absorbing their own legal fees and walking away.
"The club is still non-conforming ... and ineligible for tournament play."
The lawsuit alleged the RCGA engaged in unfair, unlawful and deceptive business practices; interfered with contract and prospective economic advantage; acted with negligence; and breached its fiduciary duties to Callaway Golf and others.
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08-11-2001 12:13 PM #2
Callaway wins
By taking on the R.C.G.A. instead of the cash heavy U.S.G.A. in this rediculous lawsuit, Callaway was able to squeeze out a joint statement that did not admit to the R.C.G.A.'s right to declare the club illegal.
They got tons of free publicity and have confused the average golfer when purchasing equipment. The name of their "Rule 35" ball is a blantant snub at the 34 Rules of golf and insinuates that it also does not conform.
IMHO, the only people who should be supporting Callaway by purchasing their products are people who think that kicking their ball out from behind a tree is more fun than playing Golf.
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