Riggs Investment Management Corp. v. Columbia Partners, L.L.C.

Robert von Pentz (defendant) was chief executive officer, chief investment officer, and board chairman for Riggs Investment Management Corporation (RIMCO) (plaintiff) from late 1989 until he resigned on September 28, 1995. Von Pentz left RIMCO to join Columbia Partners, L.L.C. (Columbia) (defendant), a new RIMCO competitor. Von Pentz was heavily involved in Columbia’s launch efforts, even while still working for RIMCO. For example, from at least April 1995, von Pentz provided Columbia with confidential RIMCO client information. Some of this information may have been publicly available with significant research, but not all of it. Von Pentz also supplied Columbia with confidential information about key RIMCO employees. In addition, while still employed by RIMCO, von Pentz discussed his new company with RIMCO employees he hoped would join him. Within two days of von Pentz’s departure from RIMCO, eight former Riggs colleagues joined von Pentz at Columbia. Two RIMCO-to-Columbia marketing employees, who usually had 20 appointments on their calendars for the next month, had no client meetings scheduled. Notably, in January 1995, Columbia’s financial backer instructed Terry Collins, von Pentz’s partner in opening Columbia, that no one associated with the new business should breach any fiduciary duties to their employers. Collins forwarded the letter, which attached court cases describing corporate fiduciary duties, to von Pentz. RIMCO sued von Pentz for breach of his fiduciary duty of loyalty to RIMCO. The court issued its findings after conducting a bench trial.