A Message from Todd Mardis to CPS Clients regarding the TLS Dispute
As many of you may know, we have been involved in a lawsuit with a company which we formerly did business with called Tax Law Solutions (TLS). TLS filed this lawsuit in 2014, claiming that we misused confidential trade secret information and breached non-compete agreements in starting a new business. We have steadfastly denied TLS’ allegations and have vigorously defended ourselves in the lawsuit.
Early this year, the Trial Judge presiding over this case entered a judgment as to liability based on TLS’s accusation that we failed to preserve certain computer files. Even though these files had nothing to do with the trade secret and non-competition issues, and despite our position that no relevant business information was ever lost, the Judge entered an order that prevented us from contesting TLS’s claims and established our liability. Despite our efforts to seek the Court’s reconsideration and the ability to defend as to liability, the Court proceeded to trial with the only issue being TLS’s alleged entitlement to damages. Even after having liability established against us by default, we were optimistic that the Court would see that we did not injure TLS in any way. Nevertheless, a few days ago, the Judge entered a judgment against us awarding TLS several million dollars.
We were obviously shocked and disappointed by the series of rulings and what we contend to be fundamental unfairness of the proceedings. We have appealed the judgment to the United States Court of Appeal for the Fifth Circuit in New Orleans. Our attorneys are confident that the circumstances should result in the judgment being overturned and that we will ultimately have our day in court to defend against the merits of TLS’ claims.
Obviously, this lawsuit has been going on for quite some time and will continue to progress through the appeals process for the foreseeable future. In the meantime, please be assured that this situation will not adversely affect our relationships with our clients or our ability to provide services in the ordinary course. We are working with our legal team to take appropriate steps to maintain normal business operations.
Also, please be assured that we have always conducted and will continue to conduct our business relationships in an ethical and professional manner. There has been no allegation that we have acted improperly in our relationships with any clients, or that we have ever mistreated any clients.
We will keep you advised and informed of any further developments with the legal proceedings.
If you have any questions, please do not hesitate to contact me.
Additional Court Document Related to the TLS Dispute: