© 2014 The Texas Lawbook.
By Natalie Posgate
Staff Writer for The Texas Lawbook
(March 13) – A Harris County jury awarded Houston-based Function One Consulting Group LLC $11.4 million Thursday for damages it suffered when a competitor made false accusations about Function One violating tax laws in 2009 to customers and state and federal agencies and investigators.
Accudata Systems, Inc., also a Houston-based IT consulting company, was accused of making false and disparaging claims to the IRS, FBI, Texas Workforce Commission and BG Group, which at the time was Function One’s largest customer.
Houston commercial litigator Steven Mitby, who represented Function One, said Accudata started making the accusations after it learned about Function One’s good relationship with BG Group and after it found out Function One hired some of Accudata’s former employees and was paying them higher salaries.
Mitby said he was “thrilled” about Thursday’s verdict, which included $1 million in punitive damages. He said the $11.4 million is close to what he had asked the jury to award.
“It’s taken five years, but a jury has vindicated Function One completely and found that its reputation was severely damaged,” said Mitby, a partner at Ahmad, Zavitsanos, Anaipakos, Alavi & Mensing. “This was a very exciting trial and a real opportunity to give a client its reputation back.”
AZA associate Adam Milasincic also represented Function One in the two-week trial.
Robert Ivey of Ogletree Deakins in Houston defended Accudata in the trial. He could not be reached for comment.
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