News & Analysis as of

Breach of Contract Restrictive Covenants Trade Secrets

McDermott Will & Emery

Fifth Circuit Rejects Recruiter’s Trade Secret Misappropriation and Contract Defenses

McDermott Will & Emery on

The US Court of Appeals for the Fifth Circuit affirmed a district court’s decision finding trade secret misappropriation and breach of contract based on a recruiter’s improper use of confidential client information. Counsel...more

Jackson Lewis P.C.

Delaware Supreme Court Upholds Forfeiture-for-Competition Provision in Limited Partnership Agreement

Jackson Lewis P.C. on

Stemming a tide of Delaware decisions closely scrutinizing and refusing to enforce non-compete agreements, Delaware’s Supreme Court held that forfeiture-for-competition provisions arising out of a Delaware limited partnership...more

Seward & Kissel LLP

Employment Litigation Roundup: November 2023

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Ex-employee’s golf outing with customer does not violate non-solicit - An auto parts manufacturer in Michigan sought a preliminary injunction against a former sales employee for violating his restrictive covenants,...more

Holland & Knight LLP

A Cautionary Tale from arrivia Inc. v. Rowley

Holland & Knight LLP on

Enforceability of releases for unknown claims at the time of settlement is a well-established legal principle, as highlighted in the recent case, arrivia Inc. v. Rowley, No. CV-23-01039-PHX-DLR, 2023 WL 7386384 (D. Ariz. Nov....more

AEON Law

Patent Poetry: Employee Confidentiality Agreements Can Be Enforced without New Consideration

AEON Law on

A federal court in Pennsylvania has held that a confidentiality agreement signed five months after an employee was hired can be enforced after the employee leaves even if the employee received no consideration other than...more

Lewitt Hackman

Franchisor 101: Court Hits Brakes on Former Franchisees

Lewitt Hackman on

An Ohio appellate court upheld the state trial court’s decision to grant a permanent injunction against two former franchisees of an auto body shop franchise working for a competitor in violation of the franchise agreement’s...more

Foley & Lardner LLP

Protecting Trade Secrets In States That Disfavor Noncompetes

Foley & Lardner LLP on

Federal and state laws are becoming increasingly unfriendly to employers' efforts to impose post-employment restrictions on workers via nonsolicit and noncompete agreements. However, even in states that have historically...more

Seyfarth Shaw LLP

Lessons from a Staffing Misappropriation and Non-Compete Trial

Seyfarth Shaw LLP on

Cases don’t try very often. Doubly so in trade secret/non-compete litigation. So many of these disputes get resolved at the injunctive relief phase of the proceeding that, when one goes the distance, it is almost always worth...more

Rumberger | Kirk

Florida Still Strongly Favors Employer’s Non-Compete Agreements 

Rumberger | Kirk on

Non-compete and confidentiality clauses have long been a fixture in employment agreements in Florida. However, there has been some dissention as to whether such restrictive covenants continue to apply where an employment...more

Littler

A Rare Occurrence: California Court Overturns Arbitrator’s Award

Littler on

California’s statutory ban on post-employment covenants, which are enforceable in most other states, has bedeviled employers trying to protect confidential information and trade secrets. The state’s Business and Professions...more

Seyfarth Shaw LLP

Courts Across the Country Continue to Address Trade Secrets Issues

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The “return to normal” in courts across the country has brought with it a flurry of trade secrets decisions that address some interesting and instructive issues, both procedurally and substantively....more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Restrictive Covenants in the Time of Coronavirus

The spread of the coronavirus disease 2019 (COVID-19) has led to changes regarding many legal issues. Despite the changes, companies still need to protect confidential information, goodwill, customer relationships, and...more

Lathrop GPM

The Franchise Memorandum - Issue 250

Lathrop GPM on

Ohio Federal Court Awards Damages to Matco for Breach of Contract, Trademark Infringement, and Misappropriation of Trade Secrets - A federal court in Ohio has granted a franchisor’s unopposed motion for summary judgment...more

Seyfarth Shaw LLP

Get Out Your Popcorn: Former Director of R&D Accused of Stealing Secret Popcorn Recipes

Seyfarth Shaw LLP on

Caramel Crisp LLC, the owner of Garrett Popcorn Shops (“Garrett”), the renowned Chicago-based purveyor of deliciously flavored popcorn, recently filed suit in federal court in Chicago against its former director of research...more

Holland & Knight LLP

Whether the “Economic Loss Rule” Applies To DTSA Claims

Holland & Knight LLP on

A trade secret misappropriation claim can arise from the same facts as, and be joined with, a claim for breach of contract by the defendant, such as a breach of a covenant not to compete or breach of a non-disclosure...more

Payne & Fears

Arizona Employers, What Exactly Does Your Non-Solicitation Agreement Prevent?

Payne & Fears on

Non-solicitation agreements are commonly used by employers to restrict former employees from soliciting clients following termination of the employment relationship. Courts throughout the country have different takes on the...more

Foley & Lardner LLP

Shhh ... Don't Tell Anyone: Tips on NDAs

Foley & Lardner LLP on

The Non-Disclosure Agreement (“NDA”) is a document that is very often prone to misuse in commercial practice. Often, when business teams from two companies get together, the first thing they do, almost as a box-checking...more

Jaburg Wilk

An Easy and Effective Way for Employers to Protect Themselves

Jaburg Wilk on

Imagine this scenario: Your company is in Arizona and one of your sales representatives goes to work for a competitor. He knows all about your pricing and bidding practices, so he helps your competitor undercut your prices....more

Seyfarth Shaw LLP

Federal Court Rules Against Calzone Franchisor In Meaty Lawsuit Against Former Franchisee

Seyfarth Shaw LLP on

In a meaty decision involving the intersection of restrictive covenant and franchise law, the United States District Court for the Southern District of Ohio recently denied a request by D.P. Dough Franchising, LLC (“D.P....more

Fisher Phillips

Choice-of-Law and Choice-of-Forum May Depend on the Choice of Where to File and When: Multi-State Employers Continue to Face...

Fisher Phillips on

Employers who operate in a multi-state environment should take note of a recent case out of the Sixth Circuit (which governs employers that operate in Kentucky, Michigan, Ohio, and Tennessee.) Stone Surgical, LLC v. Stryker...more

Seyfarth Shaw LLP

No Microscope Needed to See Why This Non-Compete Is Unenforceable

Seyfarth Shaw LLP on

When is a microscope not needed? When the problem one is looking at is big as an elephant, not small as an amoeba. Nion, an electron microscope manufacturer, contracted with Gatan, a spectrometer manufacturer, to use...more

Burr & Forman

Eight-Figure Judgments in Trade Secret Cases – Do We Have Your Attention Now?

Burr & Forman on

The conventional wisdom among attorneys and litigants in the noncompete and trade secret arena is that the cases are all about the injunctions, usually at the TRO and interlocutory injunction stage. Some judgments handed...more

Brooks Pierce

There's A Difference Between "Confidential And Proprietary Information" And A Trade Secret

Brooks Pierce on

I can't remember the last time that the Business Court granted a motion opposing the designation of a case as a mandatory complex business case. And since the Business Court Modernization Act went into effect in October...more

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