To: H James Morris who wrote (133998 ) 11/1/2001 4:32:46 PM From: Glenn D. Rudolph Respond to of 164684 This was simply expensive and stupid: "+WSJ: Judge Dismisses Amazon's Case Against Former Exec 10/30 3:14 PM (DJ) Story 7354 (AMZN, EBAY) Story 7536 =WSJ: Amazon Case -2: Attorney Sees Room For Settlement By Nick Wingfield Of THE WALL STREET JOURNAL SAN FRANCISCO (Dow Jones)--A judge has dismissed a case brought by Amazon.com Inc. (AMZN) against a former executive who left to join rival eBay Inc., saying federal court isn't the appropriate venue for the case. Monday, Judge Barbara Rothstein of U.S. District Court in Seattle granted a request by the former Amazon executive, Christopher Zyda, for dismissal of the complaint, filed by Amazon last month against, because Zyda still resides in Washington, not in California. Amazon, in its original complaint argued that Zyda was a resident of California, which would give a federal court in Washington State what's known in legal parlance as "diversity jurisdiction" since the plaintiff and defendant are based in different states. The court decision is a blow against Amazon's effort to prevent Zyda from going to work for eBay because of a confidentiality and "non-compete" agreement Zyda signed when he joined Amazon. The lawsuit highlighted the increasingly testy rivalry between eBay and Amazon, which are competing more aggressively against each other in the electronic commerce market. "We're disappointed with Judge Rothstein's ruling regarding jurisdiction," said Patty Smith, an Amazon spokeswoman. "It in no way alters our position that Mr. Zyda is prevented by the confidentiality and non-compete agreement he signed with Amazon from working at eBay as their V.P. of financial planning and analysis. We believe that Mr. Zyda's promise to abide by the agreement is binding and enforceable." Amazon wouldn't say whether it was planning to file the case in another court. But Warren Rheaume, a lawyer for Zyda, said it was likely that the federal court decision could let proceed an earlier case filed by eBay Inc. against Amazon seeking to block Amazon from preventing Zyda's employment with eBay. The eBay case was filed in California State Court. California courts have generally ruled that non-compete agreements unenforceable in the state. But Rheaume said there was also room for a settlement between Amazon and Zyda. "I would hope this would give us an opportunity to work something out with Amazon," Rheaume said. "I think this is the kind of situation where reasonable people can accommodate each other. I know Christopher wants to do that." -By Nick Wingfield, The Wall Street Journal' 415 -765 -6117 (END) DOW JONES NEWS 10 -30 -01 03:42 PM "