Live Events Agency Sues Former Employees And Independent Contractor For Breach Of Non-Solicitation Agreements

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On March 18, 2013, TBA Global, LLC, a live events market and communications agency, sued LEO Events, LLC and several of its owners for breach of non-solicitation agreements and misappropriation of TBA’s trade secrets and confidential information.  TBA claims LEO’s owners are using confidential information they gained while working for TBA to solicit TBA’s clients, including Walmart and Exxon.  A copy of TBA’s complaint can be found here.

According to TBA’s complaint, LEO was created by two former TBA senior vice presidents and a former TBA independent contractor to directly compete with TBA.  TBA also contends LEO’s owners are using information and skills they gained from TBA, including customer information and relationships and specialized training, to solicit TBA’s customers.

Since forming LEO, TBA alleges, LEO’s owners have actively solicited TBA’s clients and/or prospective clients for the purpose of developing business relationships for themselves and LEO.  TBA contends, however, that LEO’s owners are bound by two-year non-solicitation agreements which prohibit them from directly or indirectly communicating with TBA’s clients or pursuing business relationships with them.  Further, the agreements prohibit LEO’s owners from utilizing TBA’s trade secrets and confidential information to compete with TBA.

TBA has also petitioned the court for a temporary restraining order and preliminary injunction to prohibit LEO and its owners from violating their non-solicitation agreements.  A copy of the TBA’s motion can be found here.  The court denied TBA’s motion for a temporary restraining order and set TBA’s preliminary injunction motion for a hearing.

We will follow-up on this post as the TBA suit unfolds.

If you would like additional information on non-compete agreements and trade secrets law, please contact one of the Burr & Forman Non-Compete & Trade Secrets team members.