Leon Melconian

The plaintiff security company sued two former part-time supervisors and a related corporation for breach of fiduciary duty, misuse of confidential information, and wrongful competition after they were laid off during the COVID-19 pandemic.

The defendants counterclaimed for constructive dismissal and intentional interference with economic relations.

The court dismissed the plaintiff's claim, finding the defendants were not fiduciaries, did not possess confidential information, and were free to work for competitors.

The court also dismissed the counterclaim, finding the defendants failed to prove any damages for constructive dismissal and failed to establish an actionable wrong for the intentional interference claim.

The plaintiff brought a motion to compel the law firm DJD to disburse $338,627.56 held in trust pursuant to prior court orders.

The funds were the proceeds of property sales related to a fraud and misrepresentation action.

Following a settlement where the defendants relinquished their claim to the funds, DJD refused to release the money, asserting priority for its own legal fees and subsequently issuing notices of garnishment on behalf of new clients (the garnishment creditors) against its former clients.

The court held that the funds were held in trust for the plaintiff pending the litigation's outcome and did not constitute a debt payable to the defendants.

The plaintiff was granted priority over the garnishment creditors, and DJD was ordered to release the funds.