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Laconia Ball Bearings Firm Loses Appeal Over Ex-employee

The New Hampshire Supreme Court has upheld a former Belknap County Superior Court judge's rulings in a case involving New Hampshire Ball Bearings.

In May 2006, the company had filed suit against a former employee arguing that when he left to go to work for competitor Sargent Controls and Aerospace based in Arizona, he took trade secrets that had been on his laptop computer.

Following a lengthy trial, a jury returned a verdict in favor of the defendants on the misappropriation of trade secrets claim, but found in NHBB's favor on its claim that the one-time employee, W. Scott Jackson, breached his nondisclosure contract.

NHBB moved for a judgment notwithstanding the verdict on the misappropriation claims, which was denied, and moved to set aside the verdict for a new trial on those claims, which was also denied.

NHBB also moved for sanctions against the defendants, claiming "intentional spoliation of evidence." The trial court denied NHBB's request for sanctions, stating that it had no authority to meet out fines or other punishment for what it considered to be indirect criminal contempt under a prior New Hampshire Supreme Court ruling.

Rather, trial judge Larry Smukler referred the matter to the New Hampshire Attorney General, who, after review, declined to prosecute. NHBB then appealed to the high court. In a ruling released on Wednesday, the Supreme Court affirmed Smukler's judgments regarding discovery motions, evidentiary rulings, jury instructions and his denial of post-trial motions.

Associate Justice James Duggan authored the 14-page opinion. Chief Justice John Borderick Jr., Senior Associate Justice Linda Dalianis and Associate Justice Gary Hicks concurred.

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