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Contracts
Business Law
Breach of Contract

Internet Magic Inc. v. Netfax Inc., Victor Lombardi

Published: Apr. 13, 2002 | Result Date: Feb. 1, 2002 | Filing Date: Jan. 1, 1900 |

Case number: GIC752699 Verdict –  $114,000,000

Judge

Ronald S. Prager

Court

San Diego Superior


Attorneys

Plaintiff

Robert M. Steele


Defendant

Michael McDonnell


Experts

Defendant

Brian P. Brinig
(technical)

Harry Manbeck
(technical)

Facts

The defendant Netfax Inc., and its principal shareholder Victor Lombardi, took confidential and trade secret
information disclosed during potential merger discussions with the plaintiff, pursuant to a confidentiality
agreement, and used the information against the plaintiff, thus destroying the plaintiff at a critical point in time
for their product development.

Settlement Discussions

The plaintiff offered to settle at $3 million. The defendant offered $50,000.

Other Information

Breach of confidentiality, $12.4 million; misappropriation of trade secrets, $1,697,000; punitives against the co- defendant Netfax, $50 million; punitives against the co-defendant Lombardi, $50 million plus one dollar; economic, $14 million.

Deliberation

two days

Length

four weeks


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