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ColorGraphics Awarded $1.3M In Graphic Press Lawsuit

Wednesday, February 25, 2004

Press release from the issuing company

Los Angeles, CA. February 24, 2004 -- ColorGraphics is pleased to announce its victory as the Orange County California Superior Court Judge overseeing the ColorGraphics lawsuit against Graphic Press, John Zamora and Paul Good has issued a tentative ruling granting damages and punitive damages in ColorGraphics favor. This award is in the amount of $1,198,800 plus estimated court costs and interest already exceeding $115,000 as of the ruling date. The Judge’s ruling stated the basis for these damages is the previously issued jury verdict as well as the court’s own determination of punitive damages. The Judge also reaffirmed the rejection of all the countersuits filed by Graphic Press and John Zamora against ColorGraphics and its President Chris Madison. The court has scheduled this tentative ruling to be deemed final on March 1, 2004. In July of 2003, the jury in this lawsuit found in favor of ColorGraphics with a verdict stating that Paul Good had breached his employment contract with ColorGraphics, breached his fiduciary duty to ColorGraphics, misappropriated trade secrets and intentionally interfered with the prospective economic advantage of ColorGraphics. The jury also found Graphic Press, John Zamora and Paul Good negligently interfered with the prospective economic advantage of ColorGraphics. The jury specifically found Paul Good was acting within the scope of his employment at Graphic Press when he negligently interfered with ColorGraphics’ customer relationships. Based upon this complex verdict, damages will be assigned to each of the defendants with over $400,000 of the $1,300,000 determined to be payable to ColorGraphics by any of the three defendants; Graphic Press, Zamora or Good on a jointly or severally basis. ColorGraphics filed this lawsuit after discovering its sales representative, Paul Good, was simultaneously and improperly employed by Graphic Press. During this dual employment, Mr. Good was accused of diverting ColorGraphics’ trade secrets including bidding, cost estimates as well as pricing for the benefit and at the direction of his new employer, Graphic Press and its majority shareholder, Mr. Zamora. The allegations included price manipulation of ColorGraphics’ bids to ensure Graphic Press was awarded business. ColorGraphics President, Chris Madison stated, “by upholding ColorGraphics’ position, the court has ruled that such thefts of trade secrets and interference with business are not condoned and those involved will be held accountable for their illegal actions.” Mr. Madison went on to say how much he appreciated the support he has received from so many people in the advertising and printing industry as this case progressed and ultimately ended in ColorGraphics’ favor. According to Doug Stewart, Chief Administrative Officer of ColorGraphics, “this was a hard fought case with the defendants, Graphic Press and Zamora, filing countersuits which the court found totally baseless. In my opinion, these were only filed as an attempt to intimidate and deter us. When that tactic was not successful, they moved to aggressively battle us both in the courtroom and in the marketplace. Ultimately ColorGraphics prevailed with favorable verdicts and marketplace approval for having taken the three defendants to the courthouse to be held accountable for their actions.” Consistently ranked as one of the top commercial printers in the United States and the winner of many industry awards, ColorGraphics was founded in 1957. It is the largest family held commercial printer on the west coast with plants in Los Angeles, San Francisco, Seattle and Orange County, California. For further information, contact Doug Stewart, (323) 307-5228. ColorGraphics administrative offices are located at 150 North Myers St., Los Angeles, CA. 90033. The ColorGraphics website is: www.colorgraphics.com

 

 

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