Facts

Kent R. Elliott, Matthew H. Schmitt, Diana R. Sanchez were employed by Wells Fargo Investments. They left Wells Fargo to work for Wachovia Securities Inc. Wells Fargo made allegations of wrongdoing against Wachovia, Elliott, Schmitt, and Sanchez.

CONTENTIONS:
Plaintiff alleged breach of contract, misappropriation of trade secrets, breach of fiduciary duty, tortious interference with prospective economic advantage and unfair competition. Defendants denied the allegations of wrongdoing. They filed a third-party claim and counter-claim against Wells Fargo, James R. Monroe and Mark D. Webster for breach of written, oral, and implied contracts, breach of the covenant of good faith and fair dealing, nonpayment of wages, unfair business practices, unfair competition, intentional interference with prospective economic advantage, and defamation. They also asserted various affirmative defenses. Plaintiff, Monroe and Webster denied the third-party and counter-claim allegations and asserted various affirmative defenses.

Damages

Plaintiff requested over $1 million in compensatory damages, unspecified punitive and consequential damages, injunctive relief and costs. Defendants requested dismissal of plaintiff's claims and costs. They also sought unspecified compensatory damages, punitive damages, an injunction, restitution, disgorgement and interest. Finally, they sought restoration of Elliott, Schmitt, and Sanchez' U-5, and a letter of apology to their clients.

Result

Wachovia was found liable and ordered to pay $510,000 in compensatory damages and attorney fees. Attorney fees were awarded pursuant to the Uniform Trade Secrets Act. Elliot and Schmitt were found culpable, but not liable for any monetary damages. Sanchez was dismissed as a defendant with prejudice, Defendant's third-party claim and counterclaim was dismissed in their entirety. NASD fees were assessed to Wachovia.