Facts

On June 1, 2009, title officer Tony Becker left Nations Title and started working for Pacific Coast Title. Within weeks, approximately one dozen employees followed Mr. Becker from Nations Title to Pacific Coast Title and numerous customers switched their business from Nations Title to Pacific Coast Title.

PLAINTIFF'S CONTENTIONS:
Plaintiff Nations Title Company of California claimed that employees Tony Becker, Phil Jauregui, and others conspired to orchestrate the nearly simultaneous departure of approximately one dozen employees, and several thousand open orders, from plaintiff to defendant Pacific Coast Title. Plaintiff alleged that the former employees' actions breached their contracts, their fiduciary duties, and that all defendants intentionally interfered with Nation's prospective economic relations.

DEFENDANT'S CONTENTIONS:
Defendants claimed that all employees were at-will, owed no fiduciary duties, and that the departure of approximately one dozen employees evidenced a poor working environment, not a conspiracy. Defendants' re-opening of some orders previously opened with plaintiff was done only with the customers' consent – i.e., there was no intentional interference with plaintiff's economic relations, but simply fair competition for customers.

Settlement Discussions

Defendants Becker and Pacific Coast made a CCP 998 offer of approximately $151,000 before trial, which was not accepted.

Damages

Plaintiff sought approximately $1.8 million in damages against all defendants, and punitive damages against defendants Becker and Jauregui.

Result

Defense verdict. On a special verdict, the jury found there was no breach of contract, no intentional interference with prospective economic advantage, and no breach of fiduciary duty by any defendant and, accordingly, found against plaintiff and for defendants.

Other Information

Defendants plan to file Motions for Attorney Fees under a contractual provision and California's trade secret statute.

Deliberation

2.5 hours

Poll

10-2

Length

11 days