Counsel for Security Title retained George Strong of Cornerstone Research to estimate economic harm suffered by Security Title as a result of the sudden departure of the forty employees and the formation of a competing title agency.
Retained by Quarles & Brady Streich Lang
During a period of extraordinary growth in the Phoenix housing market, forty of the forty-five employees of Security Title Agency’s Phoenix office departed to open a branch of Talon Title Insurance, a subsidiary of First American Title Insurance. Security Title filed a complaint against First American and Talon for breach of fiduciary duty and unfair business competition. Counsel for Security Title retained George Strong, a managing director of Cornerstone Research, to estimate economic harm suffered by Security Title as a result of the sudden departure of the forty employees and the formation of a competing title agency.
In analyzing damages, Mr. Strong studied Security Title’s historical sales and expenses, as well as key customer relationships and historical employee turnover for Security Title’s Phoenix office. Mr. Strong opined that the sudden departure of almost all of Security Title’s employees was extraordinary and that the loss of these employees left Security Title unable to continue with its normal business operations. Further, Mr. Strong estimated the excess expenses incurred by Security Title following the departure of the employees. At trial, the jury awarded damages commensurate with Mr. Strong’s testimony.