Trial Magazine

Brent Gilbert of GradPro Recognition Products bought a territory in Alabama to sell Herff Jones graduation supplies. He hired John Wiggins to solicit orders of various graduation supplies and letter jackets from schools, and Wiggins signed a noncompete clause as part of his employment agreement. Gilbert provided training for Wiggins and his other sales associates to win accounts with schools and grow the business starting in the mid-2000s.

While still working for Gilbert, Wiggins negotiated an employment relationship with Jostens, Inc., and later left his position with Gilbert. Another of Gilbert’s sales representatives, Chris Urnis, resigned the following month and went to work for Jostens. Wiggins and Urnis told Gilbert that their schools were coming with them to Jostens, even though their noncompete agreements required them not to work in their former territories for one year. Gilbert and Herff Jones lost a total of 47 schools within the next three months.

Gilbert and Herff Jones sued Jostens,  Wiggins, and Urnis, alleging breach of contract, tortious interference with contractual relations, breach of fiduciary duty, tortious interference with business relations, misappropriation of trade secrets, and civil conspiracy. The plaintiffs alleged that Jostens had promised Wiggins and Urnis a free sales territory in exchange for information on Herff Jones’s nationwide internal pricing and that a Jostens executive had communicated with Wiggins and Urnis using their wives’ personal emails to avoid detection.

The jury awarded approximately $3.15 million. The award includes $650,000 in punitive damages against Jostens, $25,000 in punitive damages against Wiggins, and $10,000 in punitive damages against Urnis. The court denied a defense motion for judgment as a matter of law.

Citation: Herff Jones, LLC v. Jostens, Inc., No. 02-CV-2016-901869.00 (Ala. Cir. Ct. Mobile Cnty. May 30, 2019).

Plaintiff counsel: AAJ member Harry Hall II, Dothan, Ala.; Cecily Kaffer and Forrest Latta, both of Mobile, Ala.; and Michael Hurst, Andres Correa, and John Adams, all of Dallas.

Plaintiff experts: Michael Windham, lost profits, Montgomery, Ala.; and Ben Rowe, attorney fees, Mobile.