Breach of confidentiality lawsuit9/11/2023 ![]() ![]() The Defense Agency treated the event-planning contract as a set-aside contract that was limited to an Alaska Native Corporation (“ANC”) as defined in 13 C.F.R. § 631 et seq., federal agencies may conduct competitions for contracts in which only certain companies may compete (“set-aside contract”) through the business development program. Under Section 8(a) of the Small Business Act, 15 U.S.C. In 2011, the Defense Agency sought a prime contractor to provide event-planning services for a five-year term. BACKGROUND The United States Defense Threat Reduction Agency (“Defense Agency”) uses private contractors to provide labor and materials for conferences and events it hosts domestically and abroad. (“Worldwide Solutions”) assign cross-error to the trial court’s judgment notwithstanding the verdict finding that a teaming agreement was not enforceable as a contract. Federal Business Council (“FBC”) and Worldwide Solutions, Inc. (“Navar”) appeals a $1.25 million judgment for breach of a non-disclosure agreement and misappropriation of trade secrets in violation of the Virginia Uniform Trade Secrets Act (“the Act”), Code § 59.1-336 et seq. FROM THE CIRCUIT COURT OF FAIRFAX COUNTY Brett A. ![]() PRESENT: Lemons, C.J., Goodwyn, Mims, McClanahan, Powell, and Kelsey, JJ., and Millette, S.J. The Supreme Court reversed in part and affirmed in part, holding (1) Navar could not be found liable for breach of contract because nothing in the Act or the NDA required Navar to use Plaintiffs as subcontractors and (2) the trial court did not err in finding the Teaming Agreement was unenforceable as a binding contract. The trial court set aside the verdict on breach of the Teaming Agreement and entered judgment in favor of Plaintiffs in the total amount of $1.25 million. A jury found (1) Navar had breached the NDA and Teaming Agreement, and (2) Navar misappropriated one plaintiff’s trade secretes under the Virginia Uniform Trade Secrets Act. Thereafter, Plaintiffs sued Navar, asserting claims for breach of contract, unjust enrichment, quantum meruit, and trade secret misappropriation. The Defense Agency awarded Navar a five-year prime contract, but Navar did not extend subcontracts to either Plaintiff. Plaintiffs and Navar entered into a non-disclosure agreement (NDA) and a Teaming Agreement, which provided that if Navar were awarded a prime contract then it would negotiate in good faith with Plaintiffs. Plaintiffs offered their services as joint subcontractors to Navar, Inc. The United States Defense Threat Reduction Agency sought a prime contractor to provide event-planning services.
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