Arbitration process winding down for Forsee

ATLANTA -- An arbitration hearing to decide if BellSouth's No. 2 executive can leave to take the top job at rival Sprint wound down Wednesday as the state Supreme Court agreed to hear an appeal of a ruling limiting the scope of the proceeding.

At issue is the fate of Gary Forsee, vice chairman of BellSouth and chairman of Cingular Wireless, a joint venture with SBC Communications. He joined BellSouth in 1999 after nearly a decade in various positions at Sprint.

Forsee also is a 1968 Cape Girardeau Central High School graduate.

He still has strong local ties, though he hasn't lived here since he graduated.

Atlanta-based BellSouth went to court in January to stop Forsee from taking William Esrey's job as chief executive of Overland Park, Kan.-based Sprint, citing concerns that he could disclose key information about BellSouth's business.

BellSouth wants Forsee to honor a noncompete clause in his contract that prevents him from taking a job at a rival company for 18 months. BellSouth and Sprint both sell long-distance service in nine Southeastern states and they compete nationally for wireless customers.

A temporary restraining order preventing Forsee from jumping to Sprint was to expire Wednesday. Meanwhile, William Webster, a former federal judge who also served as FBI and CIA director, was wrapping up a closed-door hearing in which he was appointed to arbitrate the dispute.

The hearing started Monday. Webster could decide that Forsee must honor his contract at BellSouth or that he can go to Sprint.

Webster could also decide to extend the restraining order for a few days while he makes a decision.

Also Wednesday, the state Supreme Court agreed to hear an appeal of a lower court judge's ruling that limited the scope of the arbitration, according to a BellSouth spokesman. The judge limited the issue to be decided to how to make sure Forsee doesn't reveal confidential information. BellSouth is asking that the noncompete clause also be weighed.