finance.finditt.com/NewsStory.aspx?id=33555&cat=0 -
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Last Visited: 1/22/2008
On December 14, 2007, Home Solutions of America Inc. (the "Company") and Home Solutions Restoration of Louisiana, Inc., the Company's wholly-owned subsidiary ("HSRLA") terminated the employment of Mr. Scott Sewell.The termination by the Company was for "cause" pursuant to the terms of the Employment Agreement, dated October 26, 2006, between Mr. Sewell and HSRLA.In addition, the Company, the sole stockholder of HSRLA, removed Mr. Sewell as a director of HSRLA.Pursuant to the terms of his Employment Agreement, upon termination, Mr. Sewell is required to resign from the Board of Directors of the Company.A copy of the Company's termination letter to Mr. Sewell is attached as an exhibit to this Report. On January 7, 2008, the Company received from Mr. Sewell a letter tendering his resignation from the Board of Directors effective upon receipt and the filing of such letter in a current report on Form 8-K.As required by SEC Rules, a copy of Mr. Sewell's letter has been filed as an exhibit to this Report and a copy of this Report on Form 8-K has been provided to Mr. Sewell for his review and comment.Any letter subsequently received from Mr. Sewell by the Company stating whether he agrees with the statements made in this Report will be filed by the Company as an exhibit to this Report by an amendment thereto. In his letter, Mr. Sewell asserts that the Company was not entitled to terminate his employment for "cause" and presents his version of the circumstances leading up to such termination.The Company continues to assert that the termination was properly effected for "cause".Discussions continue between the Company and its legal representatives and Mr. Sewell and his legal representatives regarding this matter.An arbitration proceeding has commenced under the terms of Mr. Sewell's Employment Agreement and the Company intends to continue to pursue all available legal remedies against Mr. Sewell for his improper actions while employed and for any defamatory statements made by him.