U.S. Bancorp, Cavner trial moves to Aug. 20

U.S. Bancorp Investments Inc. first filed the suit in U.S. District Court two days after the prominent money manager joined The Signature Bank in September 2005. It alleges that Cavner violated her confidentiality and nonsolicitation agreements by “improperly attempting to lure away” her former U.S. Bancorp clients.

Specifically, U.S. Bancorp – the parent company of U.S. Bank – has accused Cavner of renting two commercial-sized copiers and recruiting college students to help copy thousands of confidential customer files moved in and out of her office in banker’s boxes.

Cavner has denied all wrongdoing, and The Signature Bank officials have repeatedly denied knowledge of the alleged actions.

Earlier this month, U.S. District Judge Richard Dorr appointed technical adviser Mark Johnson to conduct a forensic computer investigation in response to sanction motions filed by U.S. Bancorp. The motions allege that the defendants did not return all electronic files taken from U.S. Bancorp Investments and that they “failed to take steps to identify and preserve relevant electronic evidence,” records show.

A 12th count in the suit alleges that the defendants violated Missouri’s computer tampering law.

On Oct. 31, 2005, attorneys for U.S. Bancorp filed an amended petition that named four additional defendants – former employees Devona Breeden, Brittney Murray, Steven Clark and Becky Angus, all of whom worked for Cavner and later took jobs with The Signature Bank.

In February 2006, Dorr ordered Cavner to pay $51,000 in sanctions for making false representations during a Dec. 7, 2005, court hearing. In October, a National Association of Securities Dealers arbitration panel ordered Cavner to pay $325,000 in compensatory damages to U.S. Bancorp Investments. The panel also ordered co-defendants Clark and Angus to pay $25,000 and $2,000, respectively.

U.S. Bancorp is seeking a total of $18 million in compensatory and punitive damages from the defendants. The plaintiffs’ lead attorney, Jay Dade of Shughart Thomson & Kilroy PC, said the trial, which was previously scheduled to start March 26 before being pushed back to August, is expected to last three weeks.

The Signature Bank Chairman and CEO David Kunze said ongoing litigation precluded him from speaking in detail about the case, but he and Cavner both said they remain “positive about the merits of the case.”

Calls to Kansas City attorney Charles German of Rouse Hendricks German May PC, who represents Cavner, were not immediately returned.

In her 14 years with U.S. Bancorp, Cavner built a client portfolio valued between $363 million and $450 million.