The U.S. District Court has issued a temporary restraining order preventing a California doctor from marketing a product he invented to treat cancer and immunological disorders until a dispute between him and a Utah corporation can be settled in a formal hearing.
The order restrains Henry Mee from marketing his product, somalin, until it is determined whether he violated his contract with Dimension Industries Inc., a Utah-based corporation.According to a suit filed by the company, Mee entered into a option and license agreement with Dimension Industries that gave the company the right to decide if it wanted to distribute the product.
The suit said Mee violated the contract and company officials were afraid he would "bargain, sell or assign" all of his rights to another corporation before the hearing.
Such action, they said, would cause them "immediate and irreparable injury, loss or damage." The company asked for a restraining order until the formal hearing Aug. 29.
Judge Bruce S. Jenkins awarded Dimension Industries the temporary restraining order Aug. 17. It says Mee is officially "restrained from selling, assigning or transferring any portion of rights pertaining to somalin." However, it includes a provision to award Mee $10,000 if it is decided in court that there were no grounds for such an order.
According to the suit, Mee signed a contract specifying that Dimension Industries would test somalin for 30 days. In exchange, Mee would receive $5,000. The contract also stated that the company could extend its testing period up to 90 days, paying Mee $5,000 for each additional 30 days.
The contract said if Dimension accepted the product, 200,000 shares of stock would be transferred to Mee and he would have the option of purchasing 300,000 more. In addition, Mee would receive $1.45 million and receive a full-time, $75,000-per-year job with the company.
The suit included a copy of the contract, signed by Mee and the president of Dimension Industries. Also attached was a copy of a receipt showing that Mee received the first $5,000 payment.
The suit said that on July 27, the company sent Mee a letter stating they would exercise their option to renew the 30-day extension period. On July 29, the corporation transferred 2,000 shares to Mee.
On Aug. 2, Mee wrote the company a letter, a copy of which was included in the lawsuit, saying that it failed to renew the extension period and he considered the contract void.
A company lawyer sent a letter to Mee, stating that the firm abided by the terms of the agreement and would seek legal action to make sure the contract was fulfilled. The suit also said that efforts to contact Mee before asking for the restraining order were unsuccessful.
The company is asking that Mee be ordered to fulfill his part of the contract or pay it $1 million, court costs and attorneys' fees.