At a state court trial yesterday, jurors who deliberated the case of alternative investment management firm Highland Capital Management LP and its former executive Patrick Daugherty were awarded fees that seemed to have cancelled each other's, Bloomberg said in a report. The four-week trial led to the jury giving Highland $2.8 million for legal fees it incurred for suing Daugherty for failure to return proprietary papers and data after his departure from the private equity firm in September less than three years ago. Daugherty was awarded by the court $2.6 million for compensation stemming from the defamatory statements Highland co-founder James Dondero made against Daugherty regarding the latter's reasons for his departure.
In an interview after the verdict, Daugherty said he was not satisfied with the decision of the jury as he believed he could have garnered compensation for the other investment vehicle that was also involved in the case. Bloomberg quoted Daugherty, who said, "I also don't know how they find I was defamed and there were no damages."
Highland in in April 2012 sued Daugherty after he testified in favor of Dondero's estranged wife Becky. The former Donderos then were in a bitter divorce proceeding then. Daugherty at the time had already left the private equity firm over compensation disputes. Highland, in its lawsuit against Daugherty, claimed that the latter breached his employment agreement terms and that he had besmirched the company's reputation. Daugherty, in return, filed a defamation suit and claimed that Highland owed him money.
Daugherty's lawyers argued that the false statements made by Dondero to their client could cause the latter $2.5 million in annual compesantion and up to $11 million in aggregate. Daugherty's camp was also seeking around $10 million in incentive plan that was allegedly unpaid by Highland. Prior to the trial, Bloomberg said Daugherty was seeking $160 million in total damages
