I have been representing the former CEO of a food manufacturing company who was sued by the new owners for allegedly stealing their trade secrets. The new owners experienced a decrease in sales of one of its items and assumed, without any facts, the reason for the decline in sales must have been because someone took their recipes and shared them with a competitor. There allegations were pure conjecture and denied by all the defendants and witnesses. Never-the-less my client has incurred substantial attorney fees defending these baseless claims.
During the course of the trial, the lawyers suing my client offered to dismiss him if he disavowed any interest in any recipe he had ever used, whether or not they were transferred to the new buyers; if he signed a 5 year non-compete covenant, which he no obligation to do; and if he helped the new owners in the lawsuit against other parties who also had no liability. They threatened my client if he refused these demands they would file another lawsuit in the federal court. For obvious reasons my client refused their outrageous demands.
After they filed another lawsuit in the Federal Court, I filed a motion and had it thrown out of court because that lawsuit, like the state court action, was baseless.
Now, realizing they have no case and a trial date pending, they are trying to settle with all the parties and just walk away. We refused to walk away but wanted reimbursement of our attorney fees. When they refused I filed a cross complaint for abuse of process, malicious prosecution and for money when they sold products using my client’s recipes that were never transferred to the new buyers.
My cross complaint is seeking $1 million and I am confident that I will prevail and I am equally confident I will defeat their claims.
My client got tired of defending this baseless claim and from being bullied by these individuals and their attorneys. This is a case where the hunted has become the hunter and the prey has become the predator.