Ever since Richard Garriott won his lawsuit against former employer NCsoft last year, the legal process has been grinding on ever since to hash out the details. Today we've learned that the 5th U.S. Circuit Court of Appeals reaffirmed the win of almost $32 million in favor of Garriott.
The lawsuit came about after NCsoft fired Garriott in 2008 and then marked his departure as "voluntary," causing his stock options to expire instead of remaining intact through the end of his 2011 contract. In 2010 a court found NCsoft to have breached its contract, and it ordered the company to pay $28 million plus interest and attorney fees to Garriott and his legal team. This recent ruling affirms that outcome and paves the path for Garriott to be compensated.
In the ruling, the 5th Circuit Court writes, "It would be unjust to allow NCsoft to sit back during trial, observe Garriott's litigation strategy, and then demand a new trial on damages when it dislikes the verdict."
[Source: Androvett Legal Media press release]
Reader Comments (50)
Posted: Oct 25th 2011 11:36AM Ranxerox said
Perhaps he won't be selling that house after all now.
Posted: Oct 25th 2011 11:37AM Lenn said
Does that mean he gets to keep his house?
Posted: Oct 25th 2011 11:38AM Cannyone said
Personally I'm not sure he "deserves" it. As he was clearly not fulfilling his responsibilities with regard to Management of Tabula Rasa. But who knows he might get his comeuppance after all...
Posted: Oct 25th 2011 11:46AM wufiavelli said
@Cannyone legally 2 courts disagree with you and ncsoft. They signed the contract, they tried to weasel out of it now it bit them in the ass. Plus from what i have read they are as much responsible for the Tabula Rasas failures as garriott it. Too many cooks in the kitchen basically. Bad management setup.
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Posted: Oct 25th 2011 12:27PM Vandal said
@Cannyone I agree completely that Garriott did nothing to deserve the millions in salary that NCSoft contracted to pay him and his brother on Tabula Rasa, but that's the fault of NCSoft for being stupid enough to hire him in the first place.
The NCSoft CEO was ridiculously blind thinking that an old-school developer like Garriott could produce a game for the modern MMO market where the tolerance for flawed, traditional game mechanics is far lower than it was back in the days of UO or even EQ.
But instead they agreed in writing to pay him gobs of cash with obviously no clauses based on the quality of the work or product. They wrote him a blank check and then they tried to take it back.
NCSoft needs to face the consequences for their incredibly poor management decision rather than trying to find a way out of it. Let this be a lesson to them and anyone else dense enough to give Garriott millions to develop a game.
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The NCSoft CEO was ridiculously blind thinking that an old-school developer like Garriott could produce a game for the modern MMO market where the tolerance for flawed, traditional game mechanics is far lower than it was back in the days of UO or even EQ.
But instead they agreed in writing to pay him gobs of cash with obviously no clauses based on the quality of the work or product. They wrote him a blank check and then they tried to take it back.
NCSoft needs to face the consequences for their incredibly poor management decision rather than trying to find a way out of it. Let this be a lesson to them and anyone else dense enough to give Garriott millions to develop a game.
Posted: Oct 25th 2011 12:35PM arodriguezc said
@Cannyone
The issue is not that he did not do his job. The issue that when he started to work for NCsoft he had come to an agreement with them and that agreement was that he would be given stock. Think about it like this in order to attract the talent a lot of companies give their execs a lot of benefits and perks when they hire them. Now the stock was his unless he voluntarily left the company (which he did not). The whole case is about that, when NCSoft said that he was leaving the company instead of being fired he lost his shares and loose the money he had no intention of giving up. So the whole legal process started. Some lawyer at NCsoft is currently working in the fast food industry because he fumble up this one because I would like to think NCsoft would sink that low as a company.
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The issue is not that he did not do his job. The issue that when he started to work for NCsoft he had come to an agreement with them and that agreement was that he would be given stock. Think about it like this in order to attract the talent a lot of companies give their execs a lot of benefits and perks when they hire them. Now the stock was his unless he voluntarily left the company (which he did not). The whole case is about that, when NCSoft said that he was leaving the company instead of being fired he lost his shares and loose the money he had no intention of giving up. So the whole legal process started. Some lawyer at NCsoft is currently working in the fast food industry because he fumble up this one because I would like to think NCsoft would sink that low as a company.
Posted: Oct 27th 2011 8:50PM Vandal said
@(Unverified) You need to check **your** facts. Garriott was the only TR lead left after numerous Koreans including Jake Song got fed up with him and left NCSoft.
Garriott explains it himself back at GDC 2006 and Gamespy came away from his presentation saying how development of TR was "a testament to the amount of faith that NCSoft has in the man and his vision. "
http://pc.gamespy.com/pc/tabula-rasa/698217p1.html
An NCSoft insider backs up this impression saying in 2007 ``One of our annual events is to listen to Kim (NCSoft CEO) saying: `This year, we will finally release Tabula Rasa in the market,' in his New Year speech. I heard it four times since 2004,'' said a company insider last week. ``The only person in the company who have trust in the Garriotts is the CEO,'' another said in 2006."
http://www.koreatimes.co.kr/www/news/biz/biz_view.asp?newsIdx=10753&categoryCode=123
Finally look at the development of GW2 and ArenaNet. NCSoft's MO is not to micromanage their American subsidiaries . Their MO is to throw support behind them and let them do their own thing.
With ArenaNet, it looks like it will pay off. With Garriott, it was a horrible mistake.
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Garriott explains it himself back at GDC 2006 and Gamespy came away from his presentation saying how development of TR was "a testament to the amount of faith that NCSoft has in the man and his vision. "
http://pc.gamespy.com/pc/tabula-rasa/698217p1.html
An NCSoft insider backs up this impression saying in 2007 ``One of our annual events is to listen to Kim (NCSoft CEO) saying: `This year, we will finally release Tabula Rasa in the market,' in his New Year speech. I heard it four times since 2004,'' said a company insider last week. ``The only person in the company who have trust in the Garriotts is the CEO,'' another said in 2006."
http://www.koreatimes.co.kr/www/news/biz/biz_view.asp?newsIdx=10753&categoryCode=123
Finally look at the development of GW2 and ArenaNet. NCSoft's MO is not to micromanage their American subsidiaries . Their MO is to throw support behind them and let them do their own thing.
With ArenaNet, it looks like it will pay off. With Garriott, it was a horrible mistake.
Posted: Oct 25th 2011 11:39AM FrostPaw said
Is it any wonder failure is such a huge risk in the mmo industry when sacking people who do a bad job costs so much money.
Posted: Oct 25th 2011 2:20PM (Unverified) said
@FrostPaw
Unfortunately this is a business problem, not specific to MMOs. It happens in many industries.
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Unfortunately this is a business problem, not specific to MMOs. It happens in many industries.
Posted: Oct 25th 2011 3:51PM (Unverified) said
@FrostPaw NcSoft's own problem they caused the problem by making a deal and then backing out of it.
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Posted: Oct 25th 2011 11:42AM smartstep said
What goes around comes around I guess. For NCSoft...
Though it is a shame with Tabula Rasa. If this game would be just more polished & better managed and cooperation between NCSoft & Garriout would be better.
Had great potential. Tabula Rasa. Could have been great game.
Though it is a shame with Tabula Rasa. If this game would be just more polished & better managed and cooperation between NCSoft & Garriout would be better.
Had great potential. Tabula Rasa. Could have been great game.
Posted: Oct 25th 2011 11:44AM nimzy said
The best part of the judgement is that he doesn't have to pay commission on actually selling the stock, capital gains tax on earning money from said sale, or abide by the requisite waiting period undoubtedly included in his contract.
Whether he truly deserves 28 million dollars for essentially running a game into the ground is up for debate, though. Guy sure knows how to spend it, anyway: perhaps a second trip to space is in order?
Whether he truly deserves 28 million dollars for essentially running a game into the ground is up for debate, though. Guy sure knows how to spend it, anyway: perhaps a second trip to space is in order?
Posted: Oct 25th 2011 3:52PM Beau Hindman said
@nimzy He actually talked to me at this last GDCO about his next space trip. Something about doing like a coasting, semi-flying space drop, etc etc. Sounded like one of a few attempts of his coming up. I asked him if he had a bullwhip, since he seemed like Indiana Jones. He actually had, and knew to use it. Nice guy, funny.
yfrog.com/mefkgmpj
Beau
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yfrog.com/mefkgmpj
Beau
Posted: Oct 25th 2011 11:49AM Gaugamela said
I hope he uses that cash to make a new MMO.
Posted: Oct 25th 2011 11:50AM Kamokazi said
So can I have Tabula Rasa back now?
Posted: Oct 25th 2011 11:57AM dudes said
Start a new games company. One that doesn't screw employees!
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