AWP, Inc. is engaged in the business of traffic control solutions for road construction sites and emergency situations. AWP alleges that Shawn Watkins, a former employee, began his own traffic control business, Traffic Control Solutions, LLC (TCS) while still working at AWP, and that he misappropriated information he obtained from…
The Virginia Business Litigation Blog
Remedies Scrutinized in Trade Secrets Case Even After Default
The allegations in Autopartsource, LLC v. Bruton presented a fairly egregious case of stolen trade secrets. Due to a defendant’s failure to answer, those allegations were deemed true. As remedies, Autopartsource sought $1,131,801.55 in compensatory damages, $350,000 in punitive damages (the statutory maximum), $59,409.72 in attorneys’ fees and costs, a…
When Negotiating Contract, Trying to Slip in Changes Undetected Can Lead to Fraudulent Inducement Claim
One common problem when negotiating contracts is keeping track of all the revisions the other side makes without having to re-read the entire contract again and again. Microsoft Word’s “track changes” feature is helpful but can still lead to confusion when not used properly. Even when the other contracting party…
Not Every Unpleasant Statement Is Actionable in Court
Bettina Jordan works for the United States Postal Service. In 2012, she filed two separate actions against the Postmaster General, Patrick Donahoe, alleging discrimination under Title VII and the Rehabilitation Act. In February of 2012, Jordan suffered a physical injury on the job and accepted a limited duty assignment. She…
Negligent Breach of Contract Is Not a Tort in Virginia
Although parties can sometimes demonstrate both breach of contract and a tortious breach of duty, the duty in such cases must arise separate from the contractual duty, and negligent performance of a contract cannot form the basis for a tort claim. The United States District Court for the Western District…
Parties Cannot Stipulate to Existence of Federal Question Jurisdiction
A federal court has jurisdiction over causes of action created by federal law and over cases in which the plaintiff’s right to relief depends on the resolution of a substantial question of federal law. If a federal court lacks subject matter jurisdiction, the case must be remanded to state court,…
Recent ADA Guidelines on How to Treat Applicants and Employees with Cancer or Intellectual Disabilities
While most people know that the Americans with Disabilities Act (ADA) protects employees who have obvious visual, hearing, and physical impairments, how the law relates to employees with cancer and intellectual disabilities can sometimes raise questions. The Equal Employment Opportunity Commission (EEOC), the agency that enforces the employment provisions of…
Removal, Rather Than Procedural Gamesmanship, Is How to Secure Federal Forum
The Fourth Circuit clarified last week that after a case is filed in state court, a defendant desiring a federal forum should seek removal rather than file a separate declaratory judgment action in its federal district court of choice. In VRCompliance v. HomeAway, Inc., the court noted that the federal…
Prior to Derivative Suit, Shareholder Demand Must Clearly Identify Wrong and Demand Action
A shareholder acting on behalf of a corporation may bring a “derivative suit” against corporate directors and management for fraud, mismanagement, self-dealing or dishonesty. Before bringing such a suit, the shareholder must make a written demand that clearly identifies the alleged wrong and demands the corporation take action to redress…
An Unsigned Contract is No Party for Wiz Khalifa
Musical artist Cameron Jibril Thomaz, better known as “Wiz Khalifa,” recently saw his breach of contract case against It’s My Party get dismissed. Mr. Thomaz had hired The Agency Group as his booking agent for a new tour which would have included a concert at The Patriot Center in Northern…