Much Shelist Secures $20.7 Million Victory for Former Senior Executive of Enterprise Rent-A-Car, Client Pledges Monies Gained through Legal Battle to Charity

CHICAGO—October 8, 2008—Chicago-based law firm Much Shelist announced today that it has secured a victory for William F. Holekamp, a former senior executive of both Enterprise Rent-A-Car and its parent company, the Crawford Group. In a case centering on a dispute over the value of company stock, the U.S. Court of Appeals for the 8th Circuit has affirmed an order issued by the U.S. District Court for the Eastern District of Missouri that confirmed an arbitration award of approximately $20.7 million to Holekamp.

Having worked earlier in his career for Enterprise, Holekamp became an employee of Crawford in 1976, and was named executive vice president of Enterprise in 1992. After retiring at the end of 2000, he served the company as a consultant for five years.

In 1999, Crawford began compensating its senior employees with stock instead of entirely in cash. In 2004, Crawford informed Holekamp that the company intended to repurchase stock that had been given to him. The company tendered payment in the amount of $11.4 million based on a $25.32 share price that was derived from an appraisal utilizing methodology different than that used when the stock was originally given to employees.

In response, Holekamp filed a demand for arbitration alleging that Crawford's call and valuation of the stock breached the original Stock Award and Shareholder Agreement issued in 2000. Crawford responded by filing suit in Missouri state court requesting specific performance of the repurchase provisions of the Agreement. Holekamp countered with the same claims he had brought in his arbitration demand, and alleged that the Agreement required Crawford to arbitrate its claims. The court granted Crawford specific performance of the repurchase provisions and, in regard to the share price issue, concluded that the dispute was to be determined by arbitration.

Following a three-day hearing in March 2006, an arbitration panel entered an award based upon the same method of valuation used when the stock was originally issued. This set the purchase price of Holekamp's stock at $45.90 a share, resulting in an award of approximately $20.7 million—$9.3 million (or almost 82 percent) higher than Crawford's original payment. Crawford then challenged the award, but the district court confirmed it. The recent decision by the U.S. Court of Appeals resulted from Crawford's appeal of the district court's confirmation.

Holekamp has pledged that all monies collected beyond the original offer from Crawford and expenses incurred during the legal battle will be given to charity.

"From the beginning, our client believed that the company had undervalued the stock. He had hoped that this matter could have been resolved much sooner without protracted litigation, particularly because the net proceeds are being given to charity," said Steven P. Blonder, a Principal in the Much Shelist Litigation & Dispute Resolution group. "The Eighth Circuit's opinion fully vindicates our client's position, and I am proud to have been a part of the team that achieved this great result."

In addition to Blonder, the Much Shelist team included Principals Jeffrey C. Rubenstein, Anthony C. Valiulis, Joanne A. Sarasin, John H. Ward and Jonna Daleiden Eimer.