Commercial Case Studies
Breach of Contract, Defamation, Trade Secret Misappropriation
Result:
Confidential settlement and entry of stipulated judgment for $86 million.
Client:
Silicon Valley Company
Overview:
The firm represented a prominent Silicon Valley company in a debt collection action in Santa Cruz County against a subsidiary and guarantor of company’s former largest distributor. The Santa Cruz case was one of many pending worldwide between the parties. In the Santa Cruz case, the distributor filed numerous counterclaims, including breach of contract, defamation and misappropriation of trade secrets. Within one year of service of the company’s complaint, the parties entered into a confidential settlement that included a stipulated judgment for $86 million in the company’s favor.
Real Estate Partnership Buyout
Result:
Arbitration award of $15 million and client obtained control of $265 million from partners.
Client:
Major Real Estate Developer
Overview:
In a partnership dispute involving parties who had developed a 1,000 apartment complex and multiple mobile home parks, McManis Faulkner obtained an arbitration award for the clients against their opponents for $15 million on a defaulted loan and positioned the case so the clients could buyout their partners in the projects, which had a total value of $265 million at the dissolution of the partnership.
Commercial Lease Litigation
Result:
After filing suit, obtained agreement from client’s former landlord to refund $1.5 million in disputed overpaid rent.
Client:
International Public Company
Overview:
An international high technology company mistakenly overpaid rent on its large Silicon Valley office and research center to a national property owner. After vacating the property, the client discovered the overpayment that had occurred for several years. The property owner asserted that the rent was properly paid, under a disputed interpretation of the lease. McManis Faulkner filed suit on behalf of the client but moved the matter quickly into mediation to obtain a favorable result with minimal cost to the client. The case was effectively and efficiently resolved at mediation to the client’s satisfaction, with payment by the adverse party of $1.5 million in refunded rent.
Trade Secrets
Result:
A well-known bank settled prior to start of trial.
Client:
Software Engineer
Overview:
A Silicon Valley company sued its former employee and his new employer, a well-known bank, in Santa Clara County Superior Court for misappropriation of trade secrets. The company alleged the client had stolen software code and provided it to his new employer. Although the client’s case—for various procedural reasons—did not proceed to trial, the matter involving the bank did proceed and resulted in a defense verdict and an attorney’s fees award against the company.
Soon after the state court jury ruled in favor of the bank, the company, along with another, sued the client and the bank in the U.S. District Court for the Eastern District of California alleging copyright infringement. The copyrights at issue were those also involved in the trade secret case. McManis Faulkner represented the client in both the state and federal cases.
The federal case was a contentious one, involving extensive discovery, multiple plaintiff depositions, retaining and deposing experts, and many discovery motions. The parties began to get ready for trial—preparing exhibits, exchanging witness lists, drafting trial briefs and motions in limine, and outlining opening statements. Approximately one week prior to the start of trial, the Sixth District Court of Appeal affirmed the earlier state court verdict and attorney’s fees award, which assisted in achieving a settlement that was finalized on the Friday before trial.