Jury Awards Ex-Century 21 Manager $850,000 in Damages

A Superior Court jury on Wednesday awarded $850,000 in damages to a former Century 21 employee who claimed he had been defamed when the company accused him of stealing secrets for a competitor.

The Santa Ana jury awarded damages to W. Patrick Murphy, who said Century 21 put together a video accusing him of taking a confidential memo that outlined Century 21’s business strategy and showed the video several times.

Murphy had left his position as a field manager for Century 21 in 1990 to join another real estate company, Re/Max International.

Century 21 later filed a lawsuit contending that Murphy and Re/Max engaged in unfair business practices.

Murphy’s attorney, George Hannen, said Century 21 then put together an edited video from the trial’s taped depositions that accused Murphy of stealing the report and showed it at the 1994 National Brokers Congress, a convention of Century 21 brokers from around the country, as well as at several other company meetings.

“It was devastating to me. I will always be the guy that’s been accused of this,” said Murphy, who now is a director for Re/Max’s Caribbean region.

Murphy filed a counter suit against his former employer.

Last week, the Orange County jury rejected Century 21’s claims against Murphy and Re/Max.

Judge William F. McDonald also dismissed Century 21’s claims that the report contained trade secrets. Hannen said the papers contained only historical sales figures.

Century 21 officials declined to comment on the details of the case and said they did not know whether they would appeal.

Century 21 and Re/Max International are two of the largest real estate sales franchises in the country, competing closely for brokers and real estate business.

This is only the latest legal battle between the two companies--both have pending lawsuits in federal court alleging false advertising.

Century 21’s lawsuit was filed in 1993, when the company was based in Irvine. It later was purchased by HFS Inc. in New Jersey.