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In the mid-1980s, a dispute arose between Burton and Glendon
over the operation and ownership of ERG. On April 4, 1985, the
Bensons filed a lawsuit against Glendon, his wife Janet, and ERG.
In or about September 1985, Glendon convened an ERG board meeting
during which the directors in attendance supposedly voted to
terminate Burton’s employment with ERG. Immediately thereafter,
Glendon hired security personnel to bar Burton from entering
ERG’s facilities.
In October 1985, Burton and Glendon executed an agreement
delineating their respective responsibilities concerning
contracts with two major ERG clients, Hercules Aerospace Co.,
Inc. (Hercules),8 and Gas Research Institute (GRI). Essentially
under that agreement, Burton was granted all rights to and
responsibility for contracts with Hercules, and Glendon was
granted all rights to and responsibility for contracts with GRI.
In May 1986, Burton and Glendon initiated binding
arbitration. On July 9, 1986, the arbitration panel issued an
interim decision. In October 1986, Burton and Glendon entered
into an agreement to adjourn the arbitration proceedings choosing
instead to mediate the dispute with the aid of Winston E. Miller
(Miller or WEM) as mediator. On June 28, 1987, during the course
of mediation, Burton and Glendon entered into an agreement
8Hercules and all predecessors and successors in interest
will be referred to throughout this opinion as Hercules.
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