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...
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