New Orleans jury: Dell liable in crime camera suit
By BECKY BOHRER
NEW ORLEANS (AP) - A jury found Dell Inc. liable Monday for
$12.8 million in damages over unfair competition and conspiracy
claims in a lawsuit involving the city's problematic crime camera
surveillance program.
Southern Electronics Supply Inc. and Active Solutions LLC sought
had sought $3.6 billion in punitive damages from Dell, but the jury
rejected those claims as well as allegations their camera system
was ripped off by former city technology chief Greg Meffert and
others.
Plaintiffs' attorney Gladstone Jones said no one was completely
happy with the verdict.
NASDAQ:DELL Updated: 16:00 ET 14.32 -0.47 |
``They're in a conspiracy, and we didn't get as much money as we
wanted,'' Jones said.
Plaintiffs' attorney James Garner said they would review appeal
options and planned to seek attorneys' fees that, with interest,
would push the judgment against Dell over $20 million.
Dell attorney Phillip Wittmann said there was no immediate
decision about whether to appeal.
The plaintiffs said Meffert and others tied to city government
plotted with Dell to steal the surveillance system they'd
developed. They claimed the system - particularly in a post-9/11
world - could be worth millions, if not billions, of dollars.
Defense attorneys characterized Southern and Active as losers in
a competitive environment whose own pricing and pace of work cost
them city business. They also suggested the local companies were
going after Dell because of its relatively deep pockets. (Dell
posted $61.1 billion in revenue in 2008.)
Jurors began deliberating nearly a week ago after more than a
month of testimony. The most sensational testimony from Meffert and
Chris Drake, a project manager for the program while working for
then-city vendor Imagine Software.
Imagine was run by Mark St. Pierre, who went on to form
NetMethods and Veracent. The plaintiffs claimed NetMethods was
created to compete with them shortly after Southern signed its
contract with the city in the summer of 2004. Meffert acknowledged
working as a consultant for NetMethods while at City Hall.
But he testified his work with the technology firm was meant to
offset the cut in pay he took in leaving the private sector for
government work after Mayor Ray Nagin took office in 2002.
Nagin, early in his first term, announced plans for a citywide
surveillance system to help curb violent crime. But it has never
lived up to the lofty expectations he once had for it. It's a
fraction of the size initially envisioned and has become known more
for its costs and contract problems than for catching criminals.
Meffert said he ordered a ``handful'' of cameras from Dell
before leaving City Hall in July 2006. He said, by that time, the
plaintiffs had refused to sell him more cameras over a pay dispute.
According to a city inspector general's report, Veracent installed
cameras the city purchased from Dell.
The jury assigned Dell the greatest percentage of fault - 35
percent - among seven parties or choices in awarding $10 million in
damages for unfair trade.
The jury also awarded $2.8 million from Dell, finding the
companies relied to their detriment on promises by Dell to go into
business together. It awarded another $3.5 million in damages for
contract interference, assigning blame to Meffert, Imagine and
Southern and Active.
Smith said it wasn't clear whether Meffert would have to pay in
part because the jury ascribed less than 50 percent of the blame to
him.
Judge Rosemary Ledet was expected to decide that and any
liability the city itself might face.
There is a federal criminal investigation into the city's
technology office and the crime camera contracts. Smith has said
Meffert is a target of that probe, but based on the jury's
findings, he said he doesn't see a ``fair basis'' for criminal
action against Meffert.
11/02/09 17:28
© Copyright The Associated Press. All rights reserved. The information contained In this news report may not be published, broadcast or otherwise distributed without the prior written authority of The Associated Press.