Ex-Velocita Workers Off Hook For Secrets Settlement

Law360, New York (June 4, 2010, 3:05 PM EDT) -- There is no implied contractual obligation for employees of bankrupt shipping company Velocita Worldwide Logistics Inc. to fund a $1.85 million trade secrets settlement, despite the fact that the workers agreed to be “jointly and individually” liable, a federal appeals court has ruled.

Wednesday's ruling, in the U.S. Court of Appeals for the Fifth Circuit, marked a second appellate defeat for bankruptcy trustee Daniel Sherman, who lodged an adversary complaint in December 2006 in the U.S. Bankruptcy Court for the Northern District of Texas to collect...
To view the full article, register now.