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Contracts
Breach of Contract
Breach of Fiduciary Duty

Matt Krivicke and Knighthorse, L.L.C. v. Abyss Creations, L.L.C.

Published: May 22, 2010 | Result Date: Apr. 30, 2010 | Filing Date: Jan. 1, 1900 |

Case number: 37-2008-00057589-CU-BC-NC Verdict –  Cross-Claim: $300,000

Court

San Diego Superior


Attorneys

Plaintiff

Laurence F. Haines


Defendant

Charles E. Purdy IV


Facts

Plaintiff Krivicke worked for two years as Abyss Creations, LLC's CEO/COO. Abyss is the manufacturer, since 1997, of the "RealDoll," a life-size, anatomically correct, silicone-based love doll. After being laid off in May 2006, Krivicke sued Abyss for breach of contract. Abyss cross-claimed for breach of contract, breach of fiduciary duty and conversion.

Contentions

PLAINTIFF'S CONTENTIONS:
Krivicke alleged that he was entitled to certain net profits because of a "net profits" participation provision in his Employment Agreement.

DEFENDANT/CROSS-COMPLAINANTS' CONTENTIONS:
Abyss alleged that Krivicke breached the "work for hire" provision in the Agreement because the two dolls that Krivicke was selling, Yvette and Adam, were conceived of and actively developed by Krivicke during his tenure as CEO. Abyss also alleged that Krivicke converted various items of Abyss' property.

Result

The jury found for Abyss on Krivicke's complaint and awarded Abyss $289,944 on its cross-complaint, finding that Krivicke breached his contract.

Other Information

A hearing on Abyss' demand for permanent injunctive relief is set for May 28. Subsequently, Abyss will file a fee application based on the attorney fee provision in the Agreement.


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