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TIG Awarded $10.9 Million From Rival FusionStorm After Court Battle

By Joseph F. Kovar
July 27, 2010    5:55 PM ET

Page 3 of 4

The trial, which started in early June, was brutal, Geier said. FusionStorm and its executives at one time engaged three teams of lawyers, and both Thompson and Tonges denied many of the accusations against them, according to Geier.

In addition to the compensatory and punitive damages, FusionStorm could be forced to pay a portion of TIG's $6 million in legal fees, in addition to its own legal fees, Geier said.

FusionStorm has 30 days, starting July 26, in order to come up with a plan for paying the damages, Geier said. If FusionStorm wants to appeal the verdict, it will have to post a bond equal to 150 percent of the judgment, he said.

FusionStorm's lead attorney, I. Neel Chatterjee, partner at Orrick, Herrington & Sutcliffe LLP, declined to comment, saying that his general practice is not to comment on litigation involving his clients.

Gonzalez, the lead attorney for TIG, said FusionStorm told TIG it is making a good-faith effort to sell assets in order to be ready to make payments, but did not say which assets.

"We're cautiously optimistic they're interested in making the sale, and not in continuing the litigation," Gonzalez said. "We feel that we've made our point. We want a resolution to the case. But resolution means FusionStorm pays the judgment."

When asked if two weeks is enough time for a company like FusionStorm to sell an asset, Gonzalez said it depends on what is being sold.

"And people with cash to buy can make deals pretty quickly," he said. "We've been litigating this for three-and-a-half years. So at some point, we hope this litigation comes to an end.

In speaking with jurors after the trial, Gonzalez said the consensus among them was that if someone is being paid by an employer, that person should do everything to advance the interest of his or her employer. "They all felt that working for one employer while helping another was not right," he said.

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