A California judge refused to throw out a claim by former TCW money manager Jeffrey Gundlach that he is owed more $500 million in back wages from his former firm.
Los Angeles Superior Court Judge Carl West's decision Wednesday rejecting TCW's motion for summary judgment or dismissal of Mr. Gundlach's claim means that a jury will be allowed to hear the case.
A trial is scheduled to start on July 25 on claims and counterclaims by TCW and Mr. Gundlach.
TCW brought a suit against Mr. Gundlach last year, charging him with stealing confidential TCW data and using it to gain unfair advantage in starting a rival money management firm, DoubleLine Capital, after TCW fired him in December 2009.
Mr. Gundlach countersued, maintaining that TCW had dismissed him to avoid paying the wages.
Mr. West in a separate order threw out two TCW charges against Mr. Gundlach, saying they were already covered by TCW assertions that Mr. Gundlach had stolen trade secrets from the company.
Kevin Allred, DoubleLine's attorney, said in a statement that Wednesday's decisions were a “total win” for Mr. Gundlach and a “total defeat” for TCW. But Susan Estrich, an attorney representing TCW, had a different view of Wednesday's rulings.
“The ruling on summary judgment motions changes absolutely nothing in this trial,” she said in a separate statement. “Not one piece of evidence, and not one dollar of damages, comes off the table. We are alleging that Jeffrey Gundlach lied to and stole from the company where he worked for 24 years. His integrity, honesty and trustworthiness are on trial.”
Summary judgment can be granted only when a judge finds that there is no material dispute of the facts in a case.