Daurio, et al. v. Lappi
Published: Jul. 9, 2005 | Result Date: May 25, 2005 | Filing Date: Jan. 1, 1900 |Case number: 03CC09445 Verdict – $11,492,600
Judge
Court
Orange Superior
Attorneys
Plaintiff
Robert K. Sall
(Sall Spencer Callas & Krueger, ALC)
Defendant
Theodore G. Spanos
(Spanos & Gustafson, LLP)
Experts
Plaintiff
Anton Litchfield
(technical)
Defendant
Neill W. Freeman III
(technical)
Maxwell M. Blecher
(Blecher, Collins & Pepperman PC)
(technical)
Ted Coombs
(technical)
Facts
The defendant, a former employee of the plaintiff, Sprint Funding Corporation, left his employment in November 2001 and retained computer backup disks that he had prepared within the scope of his employment. Ten months later, he met with attorneys for the employer's litigation adversary, and indicated he wanted to be subpoenaed. The defendant established an attorney-client relationship with those attorneys and based on their legal advice gave them four disks, without a subpoena. The disks contained backups of the plaintiffs' computer database. The plaintiffs were not notified that the defendant had found the disks, or that he was giving them to counsel. The case went to trial on claims of breach of contract, conspiracy to invade privacy, conversion and trespass as to computer disks and alleged civil violations of Penal Code Sections 502 (computer crime) and 496 (receipt or concealment of stolen property). The counsel for the litigation adversary accessed the data disks without permission of the plaintiffs and used the information in connection with pending litigation.
Settlement Discussions
The plaintiffs made a C.C.P. Section 998 demand for $3.9 million. The defense made a C.C.P. Section 998 offer of $1.
Result
The jury found for the plaintiffs on all claims, including breach of contract, conversion, trespass, invasion of privacy (as to the individual plaintiffs), civil violations of Penal Code Sections 496 (receiving or concealing stolen property) and 502 (computer crimes). The jury found that the defendant aided and abetted and conspired with former defendants (who had previously settled out) to commit the alleged torts. The jury awarded treble damages on economic claims, per Penal Code Section 496. The court issued a permanent injunction on June 17, 2005 prohibiting use of the data from the disks but declined to issue declaratory relief for future indemnity. A preliminary injunction had previously been issued in November 2003.
Other Information
Post trial motions remain to be filed. Three other defendants settled out in 2003. One of these defendants had indemnified the former employee pursuant to a written indemnity agreement and provided the defense.
Deliberation
three days
Poll
12-0 (for plaintiffs), 11-1 (for treble damages)
Length
17 days
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