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From the News - A Trade Secrets Mess in Virginia

Google Alerts brought the headline Wife of Danville councilman to appeal trade-secret decision to my attention and it raises some very interesting points for such a short article.

The story raises points about trade secrets, fraudulent conveyances, collections, and litigation in general.

1. Collections. Woman loses a trade secrets case and plaintiff gets a nice sized judgment. Thing is unlike personal injury cases where insurance will pay the judgment, with a trade secrets case we have to look for assets to pay the judgment. Plaintiff in this Virginia case is doing just that.
   
2. Fraudulent conveyances. This where a defendant has an asset and transfers it away from a creditor. Fraudulent conveyance came to mind when reading this (and I bet it sounded loud and clear to plaintiff's attorneys):

   On March 17, Romar?s attorneys, Glenn Pulley and W. Huntington Byrnes, filed a motion asking for an accelerated hearing because Tomer and her husband, Danville City Councilman Adam Tomer, transferred ownership of their home to John C. Tomer on March 4.
   

   Their motion said, ?The deed ? purports to be both a deed of bargain and sale and a deed of gift. It is unknown at this time whether or not Adam J. Tomer and Robin G. Tomer actually received consideration for the transfer, but it is clear that the Grantors reported the sale price of $91,000.00 to the Clerk.?

3. Litigation Generally. A plaintiff may have a great case - liability clear to everyone - but if the defendant lacks assets there may be no way to pay the judgment. Then a great case becomes a pretty poor case. Civil cases bring to mind a line from a song: "Money, that's what I want." Do not expect a lawyer to take on a civil suit as a contingency fee case where collecting the judgment is unlikely.
4. Trade Secrets. Consider all the above, read the report from Virginia, and then read my other articles on trade secrets, and you should realize why I emphasize prevention as the best employment for a business' lawyer in a trade secrets case. Use the judgment from the Virgina case to decide if the cost of prevention is less than the risk of trade secrets exposed:

   An earlier court date was not granted, the motions were heard on April 7, and a Judgment Order was filed, ordering Robin Tomer to pay Romar $171,000.

Full post as published by Indiana Civil & Business Lawyer on May 07, 2008 (boomark / email).