Power Applications Awarded $2.5 Million

Power Applications Inc., an Irvine-based energy development and consulting company, was awarded $2.5 million by a jury in Indiana, which determined that a former business partner had stolen trade secrets and reneged on a business deal.

The company joined a lawsuit filed by Indianapolis Power and Light Co., which was awarded more than $11 million in a separate judgment after a three-week trial in a federal court in Indianapolis.

A subsidiary of Indiana Power filed a lawsuit in 1996 against former employee Greg Elam, who had formed a rival company called American Energy Service. Elam’s old company had entered into confidentiality agreements with Power Applications in an energy deal with CBS Studios in Television City. But before the deal closed, he left and took the deal with him, said attorney Peter French, who represented the Irvine company at the trial.

According to French, Elam’s new company crafted its own deal with CBS, made Power Applications President Steve Wilburn an executive vice president and promised him 10% of its stock. But Power Applications’ name soon disappeared from the deal’s internal documents and it decided not to issue stock to Wilburn, French said.

Attorney Rick Noble, who represented American Energy Solutions, said the company will appeal the award if it is not set aside by the judge. He said he does not believe the plaintiffs in the case provided any evidence that justified the damages awarded by the jury.