In 2004, plaintiff Exchequer Financial Group contacted David J. Milazzo, a consultant, to seek his recommendation for a computer software firm to write software for a planned online raw foods business. Milazzo recommended Insight 360 Degrees and Insight Enterprises, sister companies whose principals were Tracy Rowley and Robert Mungo.
Exchequer Financial entered into a contract with the companies to write the software. However, it claimed the companies did not produce the software as they were required to under the contract, and instead used trade secrets Exchequer had provided to them to produce their own software for sale.
Exchequer Financial sued Milazzo, Insight 360, Insight Enterprises, Rowley and Mungo, alleging breach of contract and misappropriation of trade secrets.
The defendants denied the allegations. They claimed they did not produce the software because Exchequer did not pay them as provided by the contract, and that Exchequer's claimed trade secrets were not unique enough to qualify as trade secrets.
District Court of Texas, 101st Judicial District, Dallas County.
Exchequer Financial Group Inc. v. David J. Milazzo, Insight 360 Degrees Inc.,
Insight Enterprises Inc., Tracy Rowley, and Robert Mungo
No. 04-4949-E
DATE OF VERDICT/SETTLEMENT: October 10, 2008
Software Firm Stole Trade Secrets, Financial Group Alleged
SUMMARY:
RESULT: Verdict-Defendant
The jury found the defendants were not in breach of contract and had not misappropriated trade secrets.
EXPERT WITNESSES:
ATTORNEYS:
Plaintiff: Gary E. Smith; Gary E. Smith Law Offices; Dallas, TX (Exchequer Financial Group Inc.)
Defendant: B. Prater Monning; Monning & Wynne; Dallas, TX (David J. Milazzo, Insight 360 Degrees Inc., Insight Enterprises Inc., Robert Mungo, Tracy Rowley)
JUDGE: Martin Lowy
RANGE AMOUNT: 0
STATE: Texas
COUNTY: Dallas
INJURIES: Exchequer claimed the defendants' failure to fulfill its contract and its theft of trade secrets cost it profits. It sought $560,000 for past and future lost profits and attorney fees.
