Tesla Ordered To Pay Fisker $1.14 Million After Losing Trade Secrets Case
By John O'Dell December 4, 2008Fisker Automotive, which has designed and plans to manufacture an exotic plug-in hybrid sport sedan, has been awarded $1.14 million in legal fees and costs from electric vehicle manufacturer Tesla Motors.
Fisker, its principals and an associated company had been sued by Tesla
for allegedly stealing Tesla trade secrets and using them to design its plug-in, the Fisker Karma.
Fisker chief executive Henrik Fisker (right)
, a noted auto designer, had been retained by Tesla in 2006 and 2007 to design a $45,000 battery-electric sedan the company wants to build as a follow-up to its electric sports car, the Tesla Roadster.
The case went to binding arbitration after Tesla filed suit, and Fisker announced last month that the case had been decided in his company's favor, the arbitrator ruling in fairly harsh language that Tesla's allegations were "baseless and neither brought nor pursued in good faith."
Today he released details of the final award: Fisker and the others are to be reimbursed $1.027 million they paid in legal fees defending themselves, and $119,000 in other costs connected with the case.
In his ruling, the arbitrator found that Fisker had been aboveboard in disclosing his plans for a plug-in hybrid to Tesla and that Tesla renewed its contract with him when it knew he was hoping to find financing for such a car.
The suit was filed not because Tesla thought Fisker stole secrets, the arbitrator wrote, but out of anger that the company found financing for its Karma (right)
project despite Tesla's in-house analysis that the project would fail.
That analysis, by the way, was delivered to Tesla's executive board in September, 2007, according to the arbitration report, by Tesla's then-marketing vice president, Darryl Siry.
Siry resigned his position earlier this week over what he called a difference of opinion with company chairman Elon Musk regarding Tesla' strategic plans.
Fisker had no comment today on the final award, and Tesla did not respond to a request for comment but last month, when the verdict was initially announced, said that it disagreed with the decision
but was focused now on the business of producing and delivering Roadsters
(left)
.
All we can say is that we wish both of them the best and that we've really seen the end of Tesla vs. Fisker. The world needs more clean car manufacturers, not fewer,and we need them working, not fighting.
John O'Dell, Senior Editor
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