Trade Secret Case Settled for Full Value on Eve of Trial

Court: American Arbitration Association

The top sales manager of a specialty insurance broker departed and started a competing brokerage. The former employee hired away key employees and suddenly the brokerage company started losing key customers. CDF acted on behalf of the brokerage and quickly started litigation under its arbitration agreement with its former employees, and stemmed the loss of customers. During discovery, it was revealed that the former employee and his cohorts took our client's documents, forms, and other trade secret materials to start the competing business. On the eve of trial, we settled the case at the full value of estimated economic damages as defendants were sufficiently concerned about awards of punitive damages and other costs against them.