Wall Systems, Inc. v. William Pompa

Summary

The court held that forfeiture of an employee's compensation and disgorgement of benefits received from third parties are available equitable remedies for breach of the duty of loyalty, but their imposition is discretionary rather than mandatory. It affirmed the damages award and the refusal to impose additional forfeiture or disgorgement because the trial court reasonably weighed the facts, including the absence of proven harm from the competitive work and the limited proven kickback damages. It reversed the constructive trust because the plaintiff failed to prove that the kickback money was traceable to the joint account.