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| Friday, November 15 Steinberg wins big in lawsuit against former partner Associated Press |
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LOS ANGELES -- A jury awarded sports agent Leigh Steinberg $44.6 million in damages Friday after ruling that his former business partner conspired to steal away his high-profile clients.
The federal court jury upheld a breach of contract claim by Steinberg against David Dunn. Claims of unfair competition and interference with prospective economic advantage against Dunn and his firm, Athletes First, also were upheld.
The eight-member panel awarded $22.6 million in punitive damages, and another $22 million in compensatory damages, to be paid by Dunn and his firm.
''It's somewhat bittersweet,'' said David Cornwell, an attorney for Steinberg. ''We're grateful. We think it's the right verdict. We think it's the right amount.''
Neither Steinberg nor Dunn was in the courtroom when the verdicts were read.
Cornwell said Steinberg sacrificed his reputation to see that justice was served. The trial included testimony suggesting Steinberg had a drinking problem.
Of the clients Steinberg lost in the war of the ''super agents,'' Cornwell said they were manipulated. He added that Steinberg hopes they will consider coming back to his firm.
Lawyers for Dunn issued a statement saying they would appeal. They complained that the jury was prevented from hearing key aspects of the defense relating to tactics they said Steinberg and his company -- Steinberg, Moorad and Dunn -- used to drive Athletes First out of business.
''No matter how many millions of dollars that SMD spends in legal fees, they have failed in their attempts to prevent NFL players from exercising their right to choose their own representative,'' Mark Humenik, general counsel for Athletes First, said in a statement.
The trial in U.S. District Court in Los Angeles lasted nearly six weeks and went to the jury Nov. 8. Wednesday, U.S. District Judge Ronald S.W. Lew will decide an unresolved claim of unjust enrichment made by Steinberg against Dunn.
Steinberg, whose clout helped inspire Tom Cruise's flamboyant character in the movie ''Jerry Maguire,'' heads an agency that helped land huge contracts for athletes like Drew Bledsoe.
The verdicts came after Steinberg's lawyer, Brock Gowdy, contended that Dunn breached his contract with Steinberg, Moorad and Dunn less than two years after he signed a five-year employment agreement worth $7 million. The deal included a $2 million signing bonus and a clause that prohibited Dunn from competing with Steinberg's firm.
Soon after leaving Steinberg's company, Dunn opened his own shop and persuaded about 50 football players to drop Steinberg and let Dunn represent them. Dunn negotiated a 10-year, $103 million deal between Bledsoe and the New England Patriots.
Bledsoe, who now plays for the Buffalo Bills, took the stand against Steinberg during the trial, but his testimony didn't stop the jury from unanimously supporting Steinberg's claims.
Lee Hutton, a defense attorney for Athletes First, told the jury that Dunn didn't solicit any SMD clients to join his firm, and that the athletes made their own choices. The lawyer also claimed that Dunn's contract with SMD was invalid because conditions were added on after it was signed. |
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