On October 26, 2020, Colorado managing partner, Derek Anderson, secured a complete defense verdict for the firm’s clients in a case between competitors in a dispute involving directors and officers. The case involved claims for breach of restrictive covenants, misappropriation of trade secrets, breach of fiduciary duty, and permanent injunctive relief. The firm defended two founders of a Colorado based company who found employment with a competitor, and the competitor, after a proposed sale of the Plaintiff’s assets to the competitor failed to consummate. The litigation was extraordinarily contentious and protracted and started with Plaintiff seeking a temporary restraining order. Nearly two years later, the court dismissed Plaintiff’s claims in their entirety, ordered judgment for Defendants, and ordered Plaintiffs to pay the firm’s clients their costs, which were substantial. Plaintiffs had sought nearly $10 million in damages.
The first week of the trial was tried to the bench in early February. The onset of the COVID pandemic required the last 11 days of the trial to be tried remotely via WebEx (which operates much like Zoom). Trying the case under such circumstances was unavoidable and not without its challenges. Fact witnesses and experts were scattered across the country and in Australia and the case was document intensive. Nevertheless, the Court concluded that Plaintiff’s case should be dismissed in its entirety. Mr. Anderson and his clients are currently seeking the imposition of sanctions requesting their attorney’s fees due to Plaintiff’s maintaining the litigation for vexatious purposes in violation of Colorado statute.
The Judgment can be found here.