Professional Negligence Law Reporter

Universal Engraving, Inc. v. Polsinelli PC, No. 1616-CV09292 (Mo. Cir. Ct. Jackson Cnty. Aug. 2018).

Universal Engraving, Inc. (UEI), is an employee-owned engraving company that manufactures brass and copper foil and embossing dies. One of the company’s longtime employees stole thousands of electronically stored documents containing UEI’s most sensitive, confidential trade
secret information, including details about the company’s operating protocols, and gave that information to Metal Magic, Inc., UEI’s primary competitor.

In response, UEI retained Polsinelli PC, which sued the employee and obtained an injunction under a noncompete clause. The Polsinelli attorneys did not obtain an injunction against Metal Magic but filed a trade secrets misappropriation suit against the company. That case went to trial, and a jury found in Metal Magic’s favor. UEI sued Polsinelli, alleging legal malpractice. The plaintiff alleged that the defendant’s attorneys had mishandled the trade secrets lawsuit by failing to designate and retain a damages expert to properly present evidence of UEI’s damages and obtain timely discovery of Metal Magic’s computers so that a forensic computer expert could confirm the presence of stolen information.

Additionally, the plaintiff claimed, the defendant’s attorneys stipulated to legally incorrect jury instructions, which further precluded a chance of recovery. The jury awarded $11.1 million in compensatory damages and found the defendant liable for punitive damages. The parties reached a confidential settlement before the punitive damages phase of trial.

Plaintiff counsel: Juliet A. Cox, Kansas City, Mo.; and Russell C. Atchley, Fayetteville, Ark.