On March 5, 2002, the Alaska Superior Court ruled that Robert Rude breached a 1987 settlement contract he had entered into with CIRI by soliciting proxies and running for a board seat in 1996.

The ruling arises out of a complaint filed by CIRI against Rude and fellow board member Harold Rudolph in 1997. The complaint alleged, among other things, violations of various Alaska state proxy regulations by Rude and Rudolph in connection with board elections. In addition, the complaint alleged that Rude violated the terms of an agreement entered between CIRI and Rude in 1987. Rude and Rudolph also have filed claims against CIRI in the case, most of which have been dismissed but some of which remain.

The Superior Court ruled that Rude's conduct in running for the board and soliciting proxies prior to expiration of the agreement breached Rude's contract with the company. The Superior Court did not determine the amount of damages owed to CIRI in ruling on CIRI's summary judgment motion; that issue remains to be resolved by motion or trial at a later date.

"We believe this ruling confirms what we have argued from the start - that Mr. Rude violated his agreement with the company in 1996. We are fully prepared to prove up our damages for the breach in future court proceedings," said Barbara Donatelli, executive vice president of CIRI.

The Court's ruling is subject to appeal by either party upon final judgment in the case.

Previous Article | Top | Next Article | Return to the list of newsletters