Maryland Court of Special Appeals Rules Against Benelogic in Suit Against Former CSO


Contact: Ray Weiss or Jessica Trzyna

443-451-7144 or



BALTIMORE, MD (2/5/13) — The Maryland Court of Special Appeals has affirmed a lower court decision against Benelogic, a Lutherville, MD-based provider of online benefits enrollment solutions.

In 2011, Baltimore County Circuit Court Judge H. Patrick Stringer, Jr. had ruled in favor of Benelogic’s former Chief Strategic Officer (CSO), Theodore DellaVecchia, in a $3 million lawsuit brought by the company. Benelogic had alleged that DellaVecchia breached his fiduciary duty to the company.

The Court of Special Appeals affirmed Judge Stringer’s finding that there was “… no persuasive evidence … that the damages claimed by Benelogic resulted from any of the alleged breaches of duty by the defendant.”

In a 37-page opinion written by Court of Special Appeals Judge Christopher B. Kehoe, the court stated, “… there was certainly sufficient evidence in the record to support each of Judge Stringer’s findings. Furthermore, many of Judge Stringer’s factual conclusions rested on Benelogic’s failure to meet its burden of persuasion.”

Benelogic had contended that DelleVecchia covertly created a competing company, recruited Benelogic employees to work for it, solicited current and prospective Benelogic customers for his new company, and misappropriated Benelogic’s trade secrets.

In the lower court opinion, however, Judge Stringer ruled specifically that the former CSO did not breach his employment agreement and did not usurp any of Benelogic’s corporate opportunities, customers, employees, or trade secrets. Further, the Court’s opinion affirmed that the defendant and his team had provided value to Benelogic commensurate with their work, and that the acts of preparation for a new company were permissible under Maryland law. “The plaintiff has not proved any loss due to the formation…,” stated Judge Stringer’s opinion.

The Court of Special Appeals affirmed Judge Stringer’s ruling, citing his conclusion that Benelogic presented “no persuasive evidence that [DellaVecchia] caused the damages claimed by [Benelogic] or that the damages claimed by Benelogic resulted from any of the alleged breaches of duty by the defendant, DellaVecchia.”

“Hopefully, the strong and detailed analysis by the Court of Special Appeals will lay this matter to rest,” noted DellaVecchia’s trial counsel, James A. List. List and attorney Paul Newhouse represented DellaVecchia in the appeal.

The Law Offices of James A. List, LLC is a mid-Atlantic law firm serving business owners; families with developmentally disabled members; and individuals with real estate, estate planning, asset protection and trust needs. The cornerstone of the firm is its personal, responsive customer service.

# # #

Baltimore Office

11019 McCormick Road, Suite 400

Hunt Valley, Maryland 21031

Eastern Shore Office

5700 Coastal Highway, Suite 100

Ocean City, Maryland 21842