A federal court jury returned a verdict of zero damages in favor of Reynolds Frizzell’s client Zinc Resources, LLC and Russ Robinson facing claims for $120 million in lost profit damages for alleged violations of noncompete, nonsolicitation, and confidentiality covenants. Reynolds Frizzell LLP team Jean Frizzell, Zach Burford, Thallia Malespin, and paralegal Misty Davis secured the defense verdict after an almost 2-week trial in the U.S. District Court for the Southern District of Texas before the Honorable Judge Alfred H. Bennett.
An international conglomerate, and its affiliates, in the steel dust recycling industry, Zinc Internacional, Steel Dust Recycling, LLC, and DRA, Inc., claimed $120 million in lost profit damages from violations of noncompete, nonsolicitation, and confidentiality covenants arising out of Mr. Robinson’s sale of an Alabama steel dust recycling business in 2009 and South Korean joint venture in 2014. The plaintiffs brought both federal and state trade secrets claims and several tort claims.
The Reynolds Frizzell Team’s successful defense included defeating an emergency appeal and motion to the Fifth Circuit Court of Appeals to stay the trial, which the plaintiffs filed on the morning of jury selection. Although the plaintiffs brought 19 separate claims and named additional defendants, including two Zinc Resources’ employees and three other companies with which Mr. Robinson was involved, the team secured a submission of only three jury liability questions regarding Mr. Robinson and Zinc Resources. The jury found the plaintiffs were entitled to zero damages as a result of a breach of a noncompete covenant and no breach of the non-solicitation or nondisclosure covenants by Mr. Robinson.
Thallia and Zach were instrumental in the victory putting on important witnesses, arguing the jury charge and handling and prevailing in the emergency appeal to the 5th Circuit that Plaintiffs filed on the first day of trial to delay the trial. Misty played the dual roles of paralegal and tech specialist.
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