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Business Law
Breach of Contract
Breach of Fiduciary Duty

Todd Morgenthaler v. Collier Buffington; Lance Hansche

Published: Apr. 25, 1998 | Result Date: Feb. 4, 1998 | Filing Date: Jan. 1, 1900 |

Case number: 747862 Verdict –  $351,761

Judge

Conrad L. Rushing

Court

Santa Clara Superior


Attorneys

Plaintiff

Anne-Marie Waggoner

Allen J. Ruby
(Allen Ruby, Attorney at Law)


Defendant

Mary B. Halfpenny

Patricia H. Cullison


Experts

Plaintiff

Nicholas L. Feakins
(technical)

Defendant

Carl Cooper
(technical)

Alan Silverman
(technical)

Facts

Plaintiff Todd Morgenthaler and defendant Collier Buffington became partners in a high technology video startup, with the plaintiff to provide the money and the defendant to provide the technology. When the plaintiff refused to contribute more money and threatened to lock Buffington out, he borrowed money from defendant Lance Hansche and moved the project to a new location. The plaintiff sued Buffington for breach of contract, breach of fiduciary duty, conversion, misappropriation of trade secrets, fraud, and conspiracy, and sued Hansche for interference with contractual relations and prospective economic advantage, and conspiracy, to commit all the torts. Defendant Buffington filed a cross-complaint for breach of contract, breach of fiduciary duty and for an accounting, and dissolution of the partnership. The plaintiff's motion for directed verdict on the cross-complaint was granted.

Settlement Discussions

The plaintiff made a settlement demand for $600,000. The defendants made a C.C.P. º998 offer of compromise for $100,000.

Damages

The plaintiff claimed the loss of $360,000 he had spent on the project.

Other Information

The verdict was reached approximately two years and eight months after the case was filed. This case proceeded in two phases. A jury trial was held on plaintiff's claims of conversion and breach of fiduciary duty, misappropriation of trade secrets, fraud and conspiracy. The jury found defendant Buffington had breached his fiduciary duty and awarded $26,250. Buffington won a defense verdict on all other claims. Hansche won a complete defense verdict. A court trial was held on the breach of contract claim and the court awarded the plaintiff $325,511. A dissolution and winding up of the partnership will follow.


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