Motorola Inc. could face a fine of as much as $100 million for allowing expert witnesses to read trial transcripts before testifying in a $10 billion trade-secrets case that ended in a hung jury, a state judge said Monday.
Circuit Judge Leroy Moe reserved his ruling on a fine, while refusing to grant SPS Technologies Corp. outright victory on its claim that Motorola stole its idea for a vehicle-tracking system. The jury was unable to reach a unanimous verdict, and Moe declared a mistrial Nov. 27.
SPS’ lawyers requested the $100 million fine after two witnesses for Schaumburg-based Motorola said they received trial transcripts before taking the stand. Moe had ordered that witnesses not be exposed to the testimony of others.
“I was professionally stunned at the enormity of the violation,” Moe said Monday at a hearing. “I almost threw up when I heard.”
He barred the two experts from testifying at a retrial, which SPS lawyers said they hoped will start in March.
SPS also asked the judge to award it $11 million in attorney fees and $7 million in legal costs. Moe said he would award “reasonable” fees, without setting dates for the fee award or a decision on any possible fine.
“I think these folks could be hit with a $100 million fine,” SPS attorney Willie Gary said after the hearing. “I’m pleased that the judge is not allowing them to get away with this.”
SPS claimed Motorola used SPS technology to develop a system that combines emergency calling and roadside assistance with a global positioning system that employs satellites to track vehicles.
Motorola then abandoned a joint venture to develop the system, forcing Ft. Lauderdale-based SPS out of business, Gary told the jury at the trial.
On Monday Moe also rejected arguments by Motorola that SPS had failed to prove its case in the eight-week trial.
“We continue to believe strongly we did nothing wrong,” George Selby, Motorola’s vice president of litigation, said after the hearing.
John Locke, a Motorola expert on computer technology and programming code, admitted Nov. 14 to having read trial transcripts, a day after Moe had admonished Motorola for providing transcripts to another expert witness.
Legal precedents allow expert witnesses to review transcripts before testifying, and Locke did not change his testimony from earlier statements, said Dinah Stein, Motorola’s lawyer.
“The witnesses did tailor their testimony” to contradict the SPS witnesses, Moe said. “There is no question in my mind this affected the outcome of the case.”
At trial SPS asked the jury to award $10 billion in damages, 10 percent of the maximum value placed on the joint venture by Motorola’s accountants.
After more than three days of deliberations the jury split 3-3 on whether Motorola had improperly misappropriated SPS’ technology.
