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Business Associations Keyed to Bainbridge
Rash v. J.V. Intermediate, Ltd.
Citation:498 F.3d 1201 (10th Cir. 2007)
J.V. Intermediate, Ltd. and J.V. Industrial Companies, Ltd. are Texas-based companies which build, refurbish, expand and manage assets for industrial process plants worldwide. JVIC hired W. Clayton Rash to start and manage a Tulsa, Oklahoma division of its industrial plant maintenance business, inspecting, repairing, and maintaining oil refineries and power plants. The parties signed an employment agreement providing Rash a base salary of $125,000. Starting in 2001, JVIC claims that Rash actively participated in and owned at least four other businesses, none of which were ever disclosed to JVIC. One of those businesses was Total Industrial Plant Services, Inc. (TIPS). TIPS bid on projects for JVIC-Tulsa, and JVIC-Tulsa, with Rash as its manager. At some point during Rash’s tenure, JVIC started its own scaffolding business. Between 2001 and 2004, JVIC paid over $1 million to TIPS. The Tulsa division never used JVIC’s scaffolding services.
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