GOVERNO LAW FIRM LLC v. KENDRA ANN BERGERON & Others.

CourtMassachusetts Appeals Court
DecidedApril 4, 2025
Docket23-P-1195
StatusUnpublished

This text of GOVERNO LAW FIRM LLC v. KENDRA ANN BERGERON & Others. (GOVERNO LAW FIRM LLC v. KENDRA ANN BERGERON & Others.) is published on Counsel Stack Legal Research, covering Massachusetts Appeals Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
GOVERNO LAW FIRM LLC v. KENDRA ANN BERGERON & Others., (Mass. Ct. App. 2025).

Opinion

NOTICE: Summary decisions issued by the Appeals Court pursuant to M.A.C. Rule 23.0, as appearing in 97 Mass. App. Ct. 1017 (2020) (formerly known as rule 1:28, as amended by 73 Mass. App. Ct. 1001 [2009]), are primarily directed to the parties and, therefore, may not fully address the facts of the case or the panel's decisional rationale. Moreover, such decisions are not circulated to the entire court and, therefore, represent only the views of the panel that decided the case. A summary decision pursuant to rule 23.0 or rule 1:28 issued after February 25, 2008, may be cited for its persuasive value but, because of the limitations noted above, not as binding precedent. See Chace v. Curran, 71 Mass. App. Ct. 258, 260 n.4 (2008).

COMMONWEALTH OF MASSACHUSETTS

APPEALS COURT

23-P-1195

GOVERNO LAW FIRM LLC

vs.

KENDRA ANN BERGERON & others.1

MEMORANDUM AND ORDER PURSUANT TO RULE 23.0

The plaintiff, Governo Law Firm LLC (GLF), brought this

action against the defendants, six former GLF employees

(attorney defendants) and the former employees' new law firm,

CMBG3 Law LLC (CMBG3), after the attorney defendants secretly

copied electronic files and databases while still employed at

GLF and took those materials with them when opening a competing

firm. A Superior Court jury found the defendants liable for

conversion, among other claims, and awarded GLF $900,000 as fair

1Jeniffer A.P. Carson, Bryna Rosen Misiura, David A. Goldman, Brendan J. Gaughan, John P. Gardella, and CMBG3 Law LLC. compensation for the misuse of its documents or databases.2

Although the jury also made a binding determination that the

defendants did not violate G. L. c. 93A, § 11, the Supreme

Judicial Court (SJC) vacated that portion of the judgment on

appeal and remanded the matter to the Superior Court for a new

trial on that claim. See Governo Law Firm LLC v. Bergeron, 487

Mass. 188, 202 (2021) (Governo). After a bench trial, the same

trial judge found that the defendants did not violate c. 93A

because their unfair and deceptive conduct did not harm or

injure GLF. The judge also found that the defendants violated

two permanent injunctions, albeit not willfully, but declined to

impose sanctions on GLF's complaints for contempt.

In this appeal from the ensuing judgment, dated March 6,

2023, GLF argues that the judge erred in finding that GLF

suffered no harm or injury from the defendants' conduct, both

because the judge was bound by the jury verdict on the

conversion claim, and because GLF proved that element of the

G. L. c. 93A claim. GLF further argues that it was entitled to

sanctions for the defendants' violations of the injunctions.

Because we conclude that some of the judge's findings on the

2 The jury also found the attorney defendants liable for breach of the duty of loyalty, and some of the defendants liable for conspiracy. The jury found that none of the defendants misappropriated trade secrets, however.

2 issue of harm or injury were clear error, we reverse so much of

the judgment as relates to the claim under c. 93A, and we remand

that claim for entry of a new judgment in favor of GLF and for

an assessment of damages consistent with this decision. We

otherwise affirm the judgment.

Background. The decision in the prior appeal describes in

detail the background of this case. See Governo, 487 Mass. at

190-192. After the second trial, the judge found the following

facts.

1. Defendants' departure from GLF. David Governo is the

sole owner and equity partner of GLF. Between 2000 and 2008, he

hired the attorney defendants to work in the firm's asbestos

litigation practice, with each attorney eventually becoming a

nonequity partner. At least as of 2006, the six attorney

defendants and one other nonequity partner ran the firm, grew

its business, and represented its clients with essentially no

involvement from Governo.

In 2016, Governo began to discuss the possibility of

selling GLF to the nonequity partners. The attorney defendants

initially were interested in this course -- an option they

dubbed their "plan A" -- but negotiations proved unsuccessful.

Specifically, the nonequity partners rejected Governo's offer to

sell the firm for $9.25 million in August 2016. Governo then

3 declined the nonequity partners' counteroffer of $2.25 million

and refused to negotiate further.

After these failed negotiations, the attorney defendants

moved forward with their "plan B." Under this plan, they

prepared to leave GLF and start their own firm, anticipating

that almost all of GLF's clients would follow them to the new

firm. To that end, during fall 2016, some of the attorney

defendants secretly copied electronic materials (discussed more

fully below) from GLF onto "thumb drives" and an external hard

drive (WD drive) and took them from the firm.3 All attorney

defendants were aware of and approved of this conduct.

Thereafter, on November 18, 2016, the nonequity partners

met with Governo and gave him a choice: sell GLF for $1.5

million plus all revenue collected through the end of that year,

or all nonequity partners would resign. Governo rejected the

offer to sell the firm but convinced one nonequity partner to

stay at GLF. Two days later, Governo told the attorney

defendants via e-mail message that he was terminating their

employment effective immediately, and asked them to confirm that

they had not taken or downloaded any files from GLF; the

attorney defendants did not respond.

3 GLF continued to have access to these materials both before and after they were copied by the attorney defendants.

4 The attorney defendants then promptly formed CMBG3 and

brought the copied materials from GLF with them. Ultimately,

the majority of GLF's clients, representing more than ninety-

five percent of GLF's annual revenue, decided to transfer their

asbestos litigation business to CMBG3.

2. Copied materials from GLF. The materials the attorney

defendants copied included "essentially all" files and databases

used to represent GLF's clients, as well as a "large volume" of

GLF's administrative materials. Among the copied materials were

six databases that GLF created via "FileMaker Pro" software to

organize, track, and store client file materials (FMP

databases).4 The first of the FMP databases, the asbestos case

management database, tracked key information about each active

asbestos case, including deposition summaries and notes from

attorneys on their mental impressions of the case and settlement

discussions with opposing counsel. Most of the information in

this database was not saved elsewhere, such as in the client

files. The second FMP database, the talc database, was used to

store and locate literature and analyses gathered and prepared

4 On appeal, GLF does not challenge the judge's finding that certain materials, known as the 8500 New Asbestos Files, were part of the files belonging to clients who transferred their legal work to CMBG3. Therefore, we do not further discuss those files, other than to note that the FMP databases provided the mechanism that GLF used to track them.

5 for GLF clients who were involved in talc litigation, an

emerging subspecialty of GLF. The third, the mail log database,

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