IDT Looses Appeal on Lawsuit by Former Executive

This news is a little old (I must have missed this one) but I thought everyone here might find it interesting. Alfred West, the current President & CEO of Xchange Telecom, Inc., had originally filed suit against IDT for what he claims was a breach of contract when he was forced out after only 6 months of employment (Feb 2001 to August 2001). West presented a handwritten agreement that he had signed by Howard Jonas which was reportedly to guarantee him 15 million over the life of the deal (you have to read the court document to see the insane amount of cash and it's breakdown).

It appears as if West, a former executive at Econophone and Viatel was given the promise of emplyment in exhange for brinign his contacts and much of the Viatel buisness and property rights on board. From what IDT contended, Wright falsely promised the rights to things he did not have any ownership of so therefore they let him walk and was the preliminary defense IDT used.

The original decision was in favor of IDT claiming that he did not have sufficient right to be paid the remaining un-worked period of the contract but a court of appeals has just overturned this decision and sided in favor of Mr. West.

If all stands up IDT will be forced to pay up! Only took 5 years for this guy to get through the lawsuits but I guess it's worth it for 15 million!

To view the full court of appeals document click here