Virginia Court Overturns Damage Award in Trade Secrets Case for Insufficient Evidence of Lost Market Value

In a recent Virginia trade secrets case, the appellate court’s ruling illustrates that in any case for damages, the manner and measure of valuation is paramount. In 21st Century Systems, Inc. v. Perot Systems Government Services, Inc., a Virginia jury awarded Perot Systems Government Services, Inc. (Perot) $3,743,843 in damages for lost goodwill from actions by 21st Century Systems, Inc. (21CSI) and former Perot employees that Perot characterized as tortious interference with contract, breach of fiduciary duty, and misuse of confidential information. The goodwill award was trebled to $11,228,529.