Plaintiff jury verdict and punitive damages for martial arts studio owner against former executives

  • PRACTICE AREA: Jury Trial, Litigation, Trade Secrets, Unfair Competition
  • INDUSTRIES: Franchise and Licensing, Martial Arts

Challenge

Our client was the leading martial arts studio operation in the Western United States, founded by Boston-born black belt in Shaolin kempo. His vision as an industry pioneer transformed the traditional single studio business model into a branded, multi-state operation with more than 140 studio locations under common management led my rigorously trained instructors. At the height of our client’s success, a group of instructors who had grown through the ranks conspired to take control of studios they managed, and rebranded half of the studios in an overnight “surprise attack.” In an instant, our client’s revenue streams from studio tuition, supply revenues, and specialized academy and tournament fees, which were the lifeblood of the company, were cut in half.

Strategy

We filed a lawsuit for our client for misappropriation of trade secrets, trademark infringement, unfair competition and civil conspiracy. Our advocacy ensured that the remaining studios and managers remained united against the common adversary. After defeating motions for summary judgment and efforts to shift the case into arbitration, we took the case to trial in Orange County.

Result

After a three-week jury trial, we won a plaintiff verdict for our client for $6.6 million and an award of $1.1 million in punitive damages. The victory was a recognition of the righteous claims of our client and it delivered justice for students of Shaolin kempo across California, Arizona, Nevada, Colorado, Washington and Texas.