Jury awards $1 to Specialized in Cotati bike feud case

<p>South Bay jurors awarded $1 in damages Friday to the Specialized bicycle company in a breach-of-contract trial against two former employees who started their own bike business in Cotati.</p><p>Volagi co-founders Robert Choi and Barley Forsman called the verdict a victory for themselves and workers at large companies everywhere who dream of someday opening their own firms.</p><p>Santa Clara County jurors split, finding Choi breached a non-competition clause in his contract and Forsman didn't. But the nominal award shows the panel did not consider the violation serious, the men said.</p><p>“It sent a clear message that people should pursue their dreams,” said Choi, 50, shortly after the verdict was announced. “Just because you sign a contract doesn't mean they own you 24/7.”</p><p>Specialized is expected to seek legal fees at a future hearing. Attorneys for Choi and Forsman estimated the cost to the mammoth manufacturer exceeded $2 million.</p><p>A lawyer for the Morgan Hill-based company, Robert Shwarts, declined to comment.</p><p>The case was closely watched within the cycling community.</p><p>Andrew Nelson, general manager of the Santa Rosa Trek store, said many of his customers felt Specialized was overstepping with its claims against Choi and Forsman.</p><p>“Small companies have a right to grow and establish themselves,” said Nelson, whose shop sold the first Volagi bikes in July.</p><p>Jim Keene, a Santa Rosa Specialized dealer and co-owner of Norcal Bike and Sport, said Specialized had to sue to protect its business. He said Volagi bikes bear a strong resemblance to Specialized products, right down to the red and black color scheme.</p><p>“Specialized has always been deeply embedded with that red color,” he said. “It looks like they pushed it for sure.” </p><p>Choi and Forsman were employed at Specialized from February 2008 to spring 2010. They quit to start Volagi, which makes high-end bikes in the $2,500 to $4,500 range.</p><p>Specialized sued, making nine different claims, including theft of trade secrets. A judge tossed out all but breach of contract.</p><p>Choi said jurors likely sided with Specialized in his case because he sent emails before he quit and downloaded the company's contacts list.</p><p>However, Choi said he and his partner never took ideas from Specialized. Neither of the men designed bikes during their employment.</p><p>Their lawyer, Tyler Paetkau, said their contract stated they couldn't work for a competitor or start a business while they remained employed. They argued it didn't bar them from planning a new venture.</p><p>Paetkau said it cost about $400,000 to mount a defense against Specialized, which he said was known to practice “competition by litigation.”</p><p>“Our guys didn't cave,” he said. “They kept up the fight at great personal risk.”</p><p>Specialized founder Mike Sinyard testified during the four-day trial. Choi and Forsman also took the stand.</p><p>Jurors began deliberations Thursday and returned with a verdict at about noon.</p><p>Forsman's wife, Susan, reported the decision on Twitter.</p><p>“Best dollar we ever spent,” she wrote.</p><p>The company intends to pay the damages on Jan. 21 in an unusual way. It is attempting to organize a group of 100 cyclists, each carrying a single penny, who will depart from Volagi offices in Cotati at 6 a.m. and ride 100 miles to Mountain View, where they will deposit their copper coins on Specialized's doorstep.</p><p>“They can't take away our passion for cycling. They can't take away our support from people who think the lawsuit is frivolous,” Susan Forsman said.</p>