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Jury Verdict : Parties Traded Suits Over Use of Plaintiffs' Customer List

The plaintiffs sought $171,000 for lost profits, $320,000 for punitive damages, and an unspecified amount for general damages and costs incurred to replace the defendants' services. In January 2003, plaintiffs Huong Que Inc. and Con Tu purchased a calendar-publishing business from Mui Luu and Cu Tu Nguyen, who were also retained as managing agents. Instead of working for the plaintiffs, Luu and Nguyen worked with their cousins and other business associates to establish a competing calendar company, according to reports, using the plaintiffs' customer list to solicit customers. The plaintiffs sued Luu and Nguyen for breach of contract, breach of the covenant of good faith and fair dealing, misappropriation of trade secrets, interference with prospective economic advantage, unfair competition and unjust enrichment. The defense argued that Luu and Nguyen did nothing wrong because they were not "owners" of the competing calendar company. Luu and Nguyen cross-complained for defamation and invasion of privacy. The plaintiffs won a temporary restraining order and preliminary injunction, which the defendants appealed, but lost when the court of appeal affirmed the lower court's decision in a published opinion, Huong Que Inc. v. Luu(2007) 150 Cal.App.4th 400. On the cross-complaint, Luu and Nguyen sought an unspecified amount for harm to reputation and general damages.

Full post as published by The Trade Secrets Vault on September 17, 2008 (boomark / email).