Facts

In October 2004, four salespeople at Groeniger & Co. (Groeniger), a waterworks supply firm, all resigned and at the same time, went to work for the local branch of a competing company, Ferguson Enterprises Inc. (Ferguson).

Claiming economic damages, Groeniger sued Ferguson for misappropriation of trade secrets, interference with a contract, interference with prospective economic advantage, breach of contract, and violation of California Business & Professions Code Section 17200.

PLAINTIFF'S CONTENTIONS:
Groeniger argued that Ferguson was using Groeniger's customer list and pricing policy provided by the four former Groeniger salespeople.

DEFENDANT'S CONTENTIONS:
Ferguson challenged Groeniger's claims, arguing that the salespeople had sought out Ferguson because Groeniger had failed to pay them bonuses or delayed payment of their bonuses. Ferguson further alleged that, in 1996, Groeniger hired the same four salespeople from other companies in the industry and had reaped the benefits of those companies' customer lists.

Damages

Groeniger sought $8.5 million in alleged lost profits.

Result

The jury returned a verdict for the defense, finding there were not any trade secrets and there was no interference.

Other Information

The business and professions code violation claim is still pending and will be decided by Judge Gary P. Friedman. The plaintiff filed motions for a new trial and JNOV on the decided causes of action, both of which were denied.