Facts

Michael Littell worked for seven years as a commissioned sales person for Montrenes Financial Services, a credit card processing sales company. Montrenes fired Littell and three other salespersons after the four refused to sign "confidentiality" agreements. Montrenes refused to allow the employees to remove their personal property from the office, and shortly after firing them, filed a misappropriation of trade secrets/corporate espionage case against the employees. Thereafter, Montrenes filed complaints with the Cypress police department and the FBI against each of the employees claiming they had stolen from the company.

Each employee answered the complaint and counter sued for wrongful termination, Labor Code violations (wrongful deductions of other employees compensation from the salesperson's commissions) and underpayment of wages.

Settlement Discussions

Before trial, Littell offered to settle for $650,000. Montrenes rejected that offer. The day before closing arguments, Littell offered to settle for $2 million. Montrenes rejected that offer. After the verdict, but before the punitive damage phase commenced, the parties engaged in four days of settlement negotiations. Montrenes settled with Littell, agreeing to pay $2,375,000.

Result

VERDICT: Trial commenced on Feb. 15, 2008 and a verdict rendered on May 29, 2008. Nonsuit on plaintiff's trade secret case and $3,911,553 ($2,411,553 economic damages; $1.5 million non-economic damages) unanimous jury verdict for Littell on cross-complaint for wrongful termination in violation of public policy. SETTLEMENT: On June 4, 2008, the case settled for $2,375,000 (excluding all Montrenes' employees' B&P section 17200 claims that Littell's counsel is still prosecuting).

Other Information

The B&P section 17200 claims are set for hearing after August 2008. This involves claims belonging to an estimated 300 employees. FILING DATE: August 5, 2004.