Court Upholds $1 Million Verdict

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Last year, Litigation & Trial Practice attorneys, Douglas J. Smillie and Maraleen D. Shields, obtained a jury verdict in excess of $1 million for the Firm’s client. The case involved claims against a former employee and his company for breach of duty of loyalty, misappropriation of trade secrets, and breach of a post-employment non-solicitation agreement. Both sides had ample opportunity to present their cases over the course of the 7-day trial in Federal Court in Allentown. After the verdict was rendered, Defendants obtained new counsel and filed post-trial motions seeking to challenge the jury’s award. Following the post-trial briefing, Judge John M. Gallagher, who also served as the trial judge, denied Defendants’ motions and confirmed the propriety of the significant jury award.

wooden gavel with usa dollar on desk. close up.

In reviewing a verdict after a trial before a jury, it is the Court’s obligation to uphold the jury’s award if there exists a reasonable basis to do so, and the verdict may be disturbed only if it is so unreasonable as to offend the conscience of the Court. This standard appropriately values the right to trial by jury, which is a hallmark of the American justice system, not to mention the time expended by the Court, the parties, and the jurors (who took time out of their lives to perform their civic duty).

In considering the motions, Judge Gallagher found that Defendants failed to meet their burden of demonstrating that “the jury’s verdict resulted in a miscarriage of justice or shocks the conscience” with regard to the existence and wrongful use of Plaintiffs’ trade secrets. Similarly, the Court ruled that the verdict amount was supported by the evidence presented during the trial, such that there was no basis for a new trial. Finally, the Court rejected the Defendants’ claim that there were judicial errors concerning the conduct of the trial, noting that the Defendants failed to show how the Court’s pre-trial rulings led to an outcome inconsistent with substantial justice.

As a result of the work of Firm attorneys Douglas J. Smillie, Maraleen D. Shields, and Benjamin J. Storms, the verdict of $1,057,016 stands. While the Defendants can always appeal, the Court’s well-reasoned and amply documented opinion sends a very clear message that any such appeal is unlikely to succeed.

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