Steven Smith v. Todd Langton
Published: Oct. 12, 2004 | Result Date: Apr. 18, 2002 | Filing Date: Jan. 1, 1900 |Case number: 310626 Verdict – $10,000
Judge
Court
San Francisco Superior
Attorneys
Plaintiff
Benjamin H. Ballard III
(Ballard Law Office)
Defendant
Tyree P. Jones
(Reed Smith LLP)
Experts
Plaintiff
Richard Hoopis
(technical)
Defendant
Alan Silverman
(technical)
Frank Caliri III
(technical)
Facts
Steven Smith, a general agent for Northwestern Mutual Life Insurance Company, sued Todd Langton, associate
general agent for The Guardian Life Insurance Company of America; The Guardian Life Insurance Company of
America; Jack Morey, vice-president for Guardian; and Walter Cardinet Jr., general agent for Guardian.
Langton had been a district agent with Smith's Northwestern Mutual general agency before he left to join
Guardian. Six other agents from the district agency followed him.
Smith alleged that Langton stole trade secrets and confidential information. He filed suit for theft of trade
secrets, breach of contract, unfair competition, and breach of fiduciary duty. Smith also sued Guardian, Morey
and Cardinet for theft of trade secrets, interference with contract, aiding and abetting breach of fiduciary duty,
conspiracy, negligence and unfair competition.
Langton cross-complained. Shortly before trial, Langton settled his cross-complaint for
$50,000.
Settlement Discussions
The plaintiff demanded $2 million. The defendant made a C.C.P. Section 998 offer of $90,000, raised to $100,000 during trial, and raised again to $200,000 after trial judge denied defendants' nonsuit motion on the question of punitive damages.
Damages
$550,000 for lost costs of building district agency and $7 million for lost future revenue (according to the plaintiff).
Result
Verdict against Todd Langton only for $10,000. No damages awarded against Cardinet on the aiding and abetting breach of fiduciary duty verdict (9-3). Defense for Guardian Life Insurance Company of America, Jack Morey, and Walter Cardinet Jr. on remaining causes of action. The plaintiff dismissed the trade secret claim on the first day of trial. The court granted a nonsuit on the negligence and unfair competition causes of action.
Other Information
Guardian's and Morey's defense of many of the plaintiff's claims rested on GAB Business Services Inc. v. Lindsay & Newsom Claim Services (2000) 83 Cal.App 4th 409, a decision the California Supreme Court has now expressly rejected and disapproved in Reeves v. Hanlon, 2004 DJAR 9911 (Aug. 12, 2004).
Deliberation
2.5 days
Poll
11-1 (breach of fiduciary duty against Langton), 11-1 (breach of contract against Langton); 9-3 (for aiding and abetting breach of fiduciary duty against Cardinet)
Length
seven weeks
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