Judge increases mining award

SARASOTA - A mining tire company based in Sarasota has seen its judgment against a former employee who was handing out trade secrets boosted to $59 million.

On March 18, 12th Judicial Circuit Court Judge Robert W. McDonald Jr. awarded exemplary damages of $39.3 million on top of $19.7 million from an initial judgment against Sam Vance, who Alpha Mining Systems says is working for Dubai, United Arab Emirates-based Al Dobowi Group, despite a court order prohibiting him from doing so.

McDonald also ordered Vance's arrest and possible extradition on a charge of criminal contempt. He also has to pay $183,618.49 in attorneys fees and costs.

The monetary penalty against Vance ranks among the largest trade secret judgments in recent Florida history.

McDonald found that in early 2005, Vance began working for China-based competitor Guizhou Tire Co. while still working for Alpha. He would take Guizhou tire orders on his wife's cell phone and through his personal e-mail account to avoid detection.

He also handed over pricing and profit margin information and customer lists to Guizhou, which paid him a commission on every tire sold, records show.

Beginning in August 2005, Vance went to work for Al Dobowi Group, then an upstart mining company. He gave all of Alpha's trade secrets, from pricing information to its customer list to the design blueprints for Alpha's specialty tires, court records say.

The blueprints include specifications of building a very unique set of tires designed to work in mines worldwide. They include tread design to the rim flange heights to the ply ratings.

Court documents stated "defendant advised Alpha's customers that they could receive the same specialized 'Alpha' tires by dealing directly through" Guizhou, the Chinese company.

Alpha's losses mounted rapidly, court records show. Del-Nat Tire Corp. and American Tire Corp. were buying a combined average of $1.9 million per month from Alpha until April 2005, when they stopped. From April 2005 to January, Alpha lost more than $10 million from Del-Nat alone, the court found.

Vance has not shown up at any of his scheduled appearances before McDonald, who has barred Vance from working in mining worldwide or contacting his current employers or any current or former customers of Alpha.