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Business Law
Misappropriation of Trade Secrets
Unfair Business Practices

Diagnostic Automation v. Sandra Williams

Published: Feb. 4, 2006 | Result Date: Jun. 20, 2005 | Filing Date: Jan. 1, 1900 |

Case number: LC068228 Bench Decision –  $98,000

Judge

Richard A. Adler

Court

L.A. Superior Van Nuys


Attorneys

Plaintiff

Leon Small


Defendant

Robert M. Victor


Facts

The plaintiff is Diagnostic Automation. The defendant is Sandra Williams, a sales representative. The plaintiff alleged the defendant worked at the company from January to July 2001. The defendant became familiar with Diagnostic's products, such as medical testing kits for drugs and pregnancy. The products were sold internationally. After the defendant left the company, she began selling to the plaintiff's customers. She started doing so first through a front organization, then later on her own.

Settlement Discussions

The demand was for $39,000. The offer was $0. No arbitration was held.

Damages

The plaintiff's claimed damages were loss of sales opportunities to existing customers. The figure was $98,000 in compensatory losses, according to the defendant's sales and the plaintiff's net profits.

Result

The judgment was for $98,000. A permanent injunction was issued forbidding future sales by the defendant to the plaintiff's customers.

Other Information

The defendant filed Chapter 7 and Chapter 13 bankruptcy. The plaintiff is pursuing the defendant pursuant to the Chapter 13 plan.


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