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Jury Verdict : National Oilwell Vargo, LP v. A&B Bolt & Supply Inc. et al

NOV initially sought $33 million for misappropriated trade secrets, breach of fiduciary duty and tortious interference with a confidentiality agreement. The plaintiff also sought punitive damages and attorney fees. Plaintiff National Oilwell Vargo, LP claimed that A&B Bolt & Supply Inc., A&B Valve and Piping Systems LP a/k/a A&B Valve and Piping Systems and A&B GP, LLC (collectively A&B) misappropriated trade secrets, breached fiduciary duties and tortiously interfered with a confidentiality agreement NOV had with its employees. According to plaintiff's counsel, NOV's DVA division sells primarily valves, specialty valves and actuated (automated) valves. A&B attempted to run a Houston office through traditional means, but was unsuccessful prior to 2006. A&B wanted to enter the actuated valve market after being purchased by new investors. NOV allegedly got into the business legitimately through purchasing a company that had an existing actuated valve business in Houston. The plaintiff purchased that company's good will, trade secrets, facilities, custom lists and customer relationships. NOV operated a successful distribution service center in Houston selling valves and related supplies. A&B allegedly usurped NOV's business by stealing the plaintiff's key employees, trade secrets and customer information. NOV claimed that it covertly contacted point people within the DVA division and throughout 2006 offered them extraordinary contractual inducements to work for A&B. A&B allegedly indemnified any employees who abandoned NOV against any claim for theft of trade secrets. NOV claimed that confidential customers were subsequently solicited for business. The plaintiff contended that individual employees Connie Dobson, Martin Willmore, Tara Kolar and Linda Urbanek violated confidentiality agreements by providing confidential information to A&B. NOV sued the A&B entities, Dobson, Willmore, Kolar and Urbanek. The employees were allegedly liable for breach of contract and theft of trade secrets. Another former employee, Don Lee, was dismissed from the suit prior to trial. On April 16, 2007, a temporary injunction was entered, and six months later, NOV alleged that the agreement had been violated. In December, the court ruled in favor of NOV. The defendant filed an interlocutory appeal with the court of appeals, which vacated the injunction in January 2008. The defendants argued that they did not take any confidential information belonging to NOV. The A&B entities contended that they did not take any confidential documents belonging to the plaintiff. A&B said that the information the accused employees had was publicly available and not confidential. The defendants contended that NOV was effectively seeking a non-completion agreement against these employees via the litigation process. At trial, NOV amended its damages demand to $5 million, plus $4 million in punitives and $1.7 million in attorney fees. A&B contended that NOV's damages were $151.42 at most.

Full post as published by The Trade Secrets Vault on June 20, 2008 (boomark / email).