HLG wins a 13 day Arbitration of an Entertainment Partnership Dispute

# 22 February 07

Three arbitrators awarded HLG clients Moir/Marie Entertainment LLC and Lisa Marie $675,000 in damages, and $175,000 in legal fees against former member and partner Steve Moir.

On August 18, 2005, MME and Ms. Marie filed a complaint in Los Angeles Superior Court against Mr. Moir for misappropriation of trade secrets, breach of fiduciary duty and contract, and interfering with Ms. Marie’s client relationships after he left MME to form Moir Entertainment, LLC. The Los Angeles Superior Court later ordered the dispute to binding arbitration.

On January 26, 2007, a panel of three arbitrators unanimously ruled that Mr. Moir breached his contractual and fiduciary duties to Ms. Marie and MME and awarded them $850,000, including legal fees. Before leaving MME, Mr. Moir copied extensive computer data and hired MME employees without disclosing his preparatory activities to Ms. Marie.

The arbitrators found that “Moir’s activities and non-disclosures substantially reduced Marie’s and MME’s ability to retain producer clients upon his departure.” In awarding Ms. Marie and MME damages, the arbitrators concluded that “Moir’s breaches of duty did cause harm to MME and Marie and that Moir unfairly benefited from such breaches.”

“We are very pleased by the award,” said Jeffrey Huron of Huron law group, lead counsel. “Mr. Moir and his counsel maintained that our claims against him were entirely without merit, yet all three of the arbitrators ruled in favor of our clients.”