Judge allows operation of competitive funeral home

Published 9:24 am Thursday, March 9, 2006

GULFPORT, Miss. (AP) — A U.S. District Court judge ruled that Chad Riemann will be allowed to operate a funeral home that is in direct competition with the company that bought his family’s old undertaking business.

The decision is the first in an ongoing legal battle between Alderwoods Group Inc., the parent company of Riemann Funeral Homes, and the Riemann family, who previously owned the undertaking business.

After the Riemann family split with Alderwoods, Chad Riemann opened Gulf Coast Funeral Homes Inc.

Alderwoods contends that by starting the new funeral home the Riemanns violated an agreement not to compete against their company. It is asking a federal judge to shut down the new business.

Judge Louis Guirola Jr. denied a petition from Alderwoods that would have placed a preliminary injunction on Riemann, preventing him from operating Gulf Coast Funeral Homes.

Alderwoods failed to meet the burden of proof for the injunction against Chad Riemanns who was not a party to the sales agreement in the late 1980s, Guirola said.

The judge is taking a request for preliminary injunctions against two other family members under advisement. Alderwoods had moved for the injunctions to be place upon David Riemann and Michael Riemann, who are brothers.

The case has not yet gone to trial.

Alderwoods was known as Loewen Group International when it bought Riemann Funeral Homes in the late 1980s for just under $5.6 million.

The company kept the Riemann name and employed members of the family until Sept. 30 when Chad Riemann, his father David, his uncle Michael and several other employees resigned.

The Riemanns parted with Alderwoods because they wanted to buy the family business back from the company, but their offer was rejected. Alderwoods also retains ownership of an insurance agency and monument business founded by the Riemanns.

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