Both parties hope to resolve Block Communications lawsuit quickly

Attorneys for both sides of the Block Communications, Inc. lawsuit were in agreement on one item in court Friday — they want to get the matter wrapped up as quickly as possible.

“We don’t want to spend money on litigation,” Robert S. Faxon, an attorney for BCI, told visiting Judge Jonathan Hein in Lucas County Common Pleas Court. “You see all the lawyers in the room. We want to spend it on the company.”

On May 8, Allan Block filed a motion seeking a preliminary injunction to prevent BCI, his brother John Robinson Block, and other members of the family from potentially selling the business. Block Communications is the parent company of The Blade and Buckeye Broadband, among other companies.

In the lawsuit, Allan Block wanted to be placed on the committee exploring the possible sale of the company, to stop the committee from exploring the possible sale of the business until he was placed on the committee, and to prevent corporate funds from being spent by the committee until he was made a member of the committee.

The judge did not rule Friday on the request for a preliminary injunction.

On Monday, BCI’s board of directors voted to place Allan Block and two other individuals — Jodi Miehls, BCI’s president and chief operating officer, and John Straub — on the Exploratory Strategic Committee immediately.

Mr. Faxon went on to describe the lawsuit as “a cloud over the business, it is a value destroying proposition.”

“We tried to solve the case before it was a case, to have him added to the committee, but those efforts were rebuffed,” John Del Monaco, an attorney for Allan Block, said.

At the meeting on Monday, the board removed Allan Block from his position as CEO and chairman of the board. He remains a shareholder and on the board of directors.

As a result, Mr. Del Monaco indicated they would be filing an amended complaint on Tuesday alleging breach of contract — Allan Block’s employment agreement — and breach of fiduciary duties.

Mr. Del Monaco said they had been told by at least one individual that the defendants are trying to “sell this company in six months, and at a discount.”

Thomas J. Smith, an attorney for John Robinson Block, said the Exploratory Strategic Committee was formed in January, and “all options are being explored” and that includes the option of not selling.

“The suggestion that there is some deadline for a sale is just inaccurate,” Mr. Smith said.

“This is a family dispute,” Mr. Faxon said. “We want to preserve the value of the company.”

“We would like to get this wrapped up,” Mr. Del Monaco said. He went on to suggest a possible timeline that would have a “final merits” hearing in early fall.

“We would also like to have this litigation wrapped up quickly,” Mr. Faxon said. He indicated BCI would file a motion to dismiss within 13 days of the filing of the amended complaint.

“I like this idea of let’s get this done sooner,” Judge Hein remarked.

The next court date is a scheduling pre-trial on July 8.