Top Plaintiffs' Verdicts by Impact -- Hewlett-Packard Co. v. Oracle Corp.

Mark V. Hurd has done a good job ruffling the feathers of two Silicon Valley mainstay technology companies in recent years.

The former chief executive officer of Palo Alto-based Hewlett-Packard Co. resigned from the top spot in August 2010 amid allegations that he sexually harassed an outside contractor. Only a month later, Redwood Shores-based Oracle Corp. snatched Hurd up to be its co-president.

The move irked executives at HP, a longtime client of Oracle's but also a competitor. HP sued Oracle and Hurd in 2010 shortly after the move, alleging Hurd would expose insider information to his new employer. That lawsuit procured a deal, the so-called "Hurd Agreement," which stated generally that Oracle would continue to provide HP with software, and Hurd would keep mum about insider details, according to court documents.

The calm waters lasted until Oracle ceased developing software used on HP's Integrity servers.

HP - represented by Gibson, Dunn & Crutcher's Jeffrey T. Thomas - lodged a lawsuit against Oracle in June 2011, alleging Oracle breached the contract reached in the Hurd agreement.

Following a 12-day bench trial that began in late June, Santa Clara County Superior Court Judge James P. Kleinberg ruled in favor of HP. He said Oracle was contractually obligated to continue developing software for HP's Integrity machines.

The lawsuit is scheduled to move into a damages phase in front of a jury in April. Hewlett-Packard Co. v. Oracle Corp., 203163 (Santa Clara County Sup. Ct., filed June 15, 2011).

Thomas declined to comment on the verdict except to say he and his team are "very pleased" with the outcome so far. Oracle's attorney, Daniel M. Wall of Latham & Watkins LLP, could not be reached.

"The ruling is a tremendous win for HP and its customers," an HP spokesman said in an emailed statement. "We expect Oracle to comply with its contractual obligation as ordered by the Court."

- SAUL SUGARMAN

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