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Case of the Month

West's® Jury Verdicts - Nevada Reports

Former Company President Awarded $6M on Counterclaims

Boomj.com v. Pursglove

Type of Case:
Business Organizations - Corporations
Personal Property - Conversion
Labor & Employment - Wage Disputes
Fraud & Misrepresentation - Business
Fiduciary Duty - Business Organizations
Interference with Economic Advantage

Specific Liability:
Former president breached contract with and duties to company; company failed to pay wages due to company and converted his stock shares

General Injury:
Monetary damages

Jurisdiction:
State: Nevada
Court: United States District Court, D. Nevada.

Related Court Documents:
Plaintiffs' complaint: 2008 WL 8605996
Defendant's answer and counterclaim: 2008 WL 8605998
Jury instructions: 2011 WL 3271262
Verdict form: 2011 WL 3271261
Judgment: 2011 WL 3353291

Case Name:
Boomj.com and Linlithgow v. George Pursglove, an individual; Does 1 through 50; and Roe corporations I through X, inclusive

Docket/File Number:
2:08-cv-00496

Verdict:
Defendant/counterclaimant, $6,020,775.00

Verdict Date:
July 27, 2011

Judge:
Kent J. Dawson

Attorneys:
Plaintiffs/Counterdefendants: Joseph Maridon, The Maridon Law Firm, Las Vegas, Nev.

Defendant/Counterclaimant: Gus W. Flangas and Jessica K. Peterson, Flangas McMillan Law Group, Las Vegas, Nev.

Trial Type:
Jury

Experts:
Not Reported.

Breakdown of Award:
$3,000,000.00 to defendant/counterclaimant Pursglove for compensatory damages for conversion

$3,000,000.00 to defendant/counterclaimant Pursglove for punitive damages for conversion

$20,775.00 to defendant/counterclaimant Pursglove for wage claim

Summary of Facts:
Linlithgow LLC reportedly owned a portion of Boomj.com, which was an Internet company that owned a Web site, www.Boomj.com, that provided diversified media, content and advertising targeting Baby Boomers and Generation Jones.

On Oct. 1, 2006, Boomj.com hired George Pursglove. On Nov. 29, 2006, Pursglove became president and chief executive officer of Boomj.com. Boomj.com said Pursglove entered a confidentiality agreement with the company in August 2007. Part of the employment agreement, Booj.com claimed, was that Pursglove would receive shares as payment for his services as CEO, but those shares would not vest until he had been employed for a year. Pursglove's counsel said he received 3,400,000 shares on Nov. 29.

According to Boomj.com, Pursglove resigned at a board meeting in October 2007.

In February 2008 Boomj.com and Linlithgow filed a lawsuit against Pursglove in the Clark County District Court, case number A557312. The plaintiffs alleged Pursglove removed confidential information from his office following his resignation, including his executed confidentiality/non-compete agreement. Further, they claimed the defendant attempted to coerce Boomj.com employees to work for him on a competing Web site, sold shares of stock without permission and improperly submitted personal expenses to Boomj.com for reimbursement.

The plaintiffs alleged breach of contract, breach of fiduciary duty, fraud, conversion, trespass and intentional interference with contractual relations.

The case was removed to federal court in April 2008.

Pursglove answered and filed a counterclaim. He claimed his former assistant and other employees witnessed him cleaning out his office and said he removed only personal items. He also denied entering into a confidentiality/non-compete agreement, denied attempting to coerce Boomj.com employees and denied selling shares of Boomj.com stock.

In his first counterclaim, Pursglove contended Boomj.com breached their contract by failing to honor the stock ownership agreement. Also, the counterclaimant alleged breach of fiduciary duty, fraud and conversion in connection with the stock dispute.

Pursglove said that on Dec. 28, 2007, Reel Estate Services Inc. (RES) entered into an agreement with Boomj.com and merged with Boomj.com. Pursglove claimed RES agreed to issue 2.02 shares of stock for each outstanding share of Boomj.com stock. Pursglove turned in his stock certificates, pursuant to the Reorganization Plan, so that new stock certificates could be issued. Pursglove alleged the new stock certificates were never issued, and Boomj.com gave his stock to Linlithgow.

Finally, according to Pursglove, he was also owed wages from Sept. 14 through Oct. 26, 2007, but Boomj.com refused to pay those wages.

In July 2011 a jury heard the case and found for the defendant on the plaintiffs' claims. Further, the jury found for Pursglove on his counterclaims, awarding him $20,775.00 for his unpaid wages, $3,000,000 for his conversion claim and $3,000,000 for punitive damages.

Court: United States District Court, D. Nevada.

Westlaw Citation:
2011 WL 3622944

West's Jury Verdicts - Nevada Reports Citation:
West's J.V. Nev. Rep., Vol. 7, Iss. 6, p. 20 (2011)