Specialized Bicycle Components won $1 in damages from
a competing company founded by two of its former employees in court
last week.
Specialized, which is headquartered in Morgan Hill,
sued the Volagi company’s two founders, Robert Choi and Barley
Forsman, for breach of contract in Santa Clara County Superior
Court, according to spokespeople for the two companies. The two
former Specialized employees were accused of violating their
contract with Specialized by plotting to form their own company
while they were still working there.
After a two-week trial, a jury last Friday returned a
mixed verdict, with Choi found liable and Forsman let off the hook,
according to Choi. The jury awarded Specialized $1 in damages.
“This lawsuit was a matter of
principle and about protecting our culture of trust and
innovation,” Specialized said in a statement released after the
jury’s verdict was announced. “We respect the ruling of the court
in our favor. We are very satisfied with the outcome and the
damages set at $1. We really want to put all our passion and time
into growing the sport of cycling.”
Specialized is one of the largest bicycle and parts
manufacturers in the world. It’s also one of the top three
employers in Morgan Hill with about 435 employees, according to
city staff.
Volagi, a small startup company, is headquartered in
Cotati. Choi, 50, lived in Gilroy when he was still working for
Specialized and decided to start his own company. He said probably
both sides can claim “vindication” from the ruling, as Specialized
won the breach-of-contract complaint, but Volagi did not cause the
bike-making behemoth any significant damages. He added that he,
Forsman and Volagi just want to be left alone by Specialized and be
allowed to “compete fairly in the marketplace.”
“We feel like we stood up for what is so endeared in
Silicon Valley: If you can build a better mouse trap, the world is
yours,” Choi said. “We didn’t do anything wrong but to pursue a
dream to have your own business and make something of
yourself.”
Specialized’s original complaint, filed last year,
accused the pair of ex-employees of stealing the Morgan Hill
company’s trade secrets as well as aiding and abetting, Choi said.
However, those accusations were unfounded in court.
Choi estimated that Specialized spent close to $2
million on the lawsuit, and he and Forsman “almost went out of
business” due to their legal costs the amount of which he did not
specify.
