Sports representation agency Steinberg Moorad & Dunn, Inc., a subsidiary of Assante Corp. has emerged triumphant from its 18-month legal battle to protect it from the defection of a former partner and protégé.

After five weeks of testimony, a Los Angeles jury agreed that defendant David Dunn breached his employment contract, interfered with the future profitability of the firm, and used unfair and improper tactics when he and other employees left SMD in February 2001 to form a competing firm called Athletes First. The jury confirmed the same claims against co-defendant Athletes First.

The jury ordered Dunn and Athletes First to pay SMD a total of US$44.7 million. Athletes First was ordered to pay US$20 million in compensatory damages, and an additional US$20 million in punitive damages. Dunn was ordered to pay US$2 million in compensatory damages and an additional US$2.7 million in punitive damages.

SMD and Assante initiated the lawsuit in 2001 after Dunn left the firm without advance notice and with three years left on his employment contract. He immediately formed Athletes First and began representing a number of SMD’s football clients, contravening the non-competition, non-solicitation provisions of his contract with SMD.

Harvey Schiller, chief executive officer of Assante US, said he was gratified to see that important principles of fair business practice were upheld.

“For the sake of our clients, employees and shareholders, it was essential that we protect the firm from these actions,” Schiller said in a news release. “The outcome confirms further strength and stability for our U.S. operations. With this matter resolved, we can continue to build our leadership position in the financial and personal services industry.”