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Scher Loses Court Case On Non-Compete

John Scher's application for a preliminary injunction seeking relief from his non-compete agreement with Mitch Slater was denied by a New Jersey Superior Court judge. When Scher resigned from Metropolitan Entertainment Group last August, he signed a non-compete clause barring him from concert promoting in the United States or touring related business until March 16, 2005. When Slater acquired MEG from Covanta, the non-compete was also acquired by Slater. Scher is expected to appeal the court ruling as the case shifts to bankruptcy court due to Covanta's bankruptcy. Terms of the non-compete clause require Slater to pay Scher $250,000 per year for the next three years.