News & Analysis as of

Breach of Duty Former Employee

Venable LLP

Fourth Circuit Holds That Government Contractors Can Rely on Fiduciary Duty of Loyalty to Prevent Employees from Direct...

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The U.S. Court of Appeals for the Fourth Circuit has found that employees can breach their duty of loyalty to their employers and tortiously interfere with a business expectancy by competing against their employer for the...more

Genova Burns LLC

Potential Harm Enough For Class Action to Proceed in Data Breach Litigation

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The Third Circuit Court of Appeals has given new life to a putative class action suit led by a former employee of a company that suffered a ransomware attack, leading to her sensitive information being released onto the Dark...more

Winstead PC

Employee’s Fiduciary Duty May Not Be Limited To His Or Her Employer

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​​​​​​​In Trench Tech Int’l, Inc. v. Tech Con Trenching, Inc., the son of an owner of a company, who was an employee, downloaded design plans and other information and went to another company who used that information. No....more

Nutter McClennen & Fish LLP

Judge Strikes Fiduciary Duty Claims Asserted by FTI Against Former Employees, But Not Aiding and Abetting Claim Asserted by FTI...

FTI sued three of its former employees who went to work for Berkeley Research Group (Berkeley), an FTI competitor. The former employees, FTI alleged, breached their FTI employment contracts and their fiduciary duty of loyalty...more

Manatt, Phelps & Phillips, LLP

Third Circuit Reverses Injunction in Trade Secret Misappropriation Suit

The U.S. Circuit Court of Appeals for the Third Circuit took on the misappropriation of trade secrets recently, reversing a district court’s grant of a preliminary injunction halting competition by a company’s rival and two...more

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

Louisiana Court Rules Sales Manager Owed Fiduciary Duty to Employer

The recent decided case of Duplessis Buick-GMC Truck, Inc. v. Chauncey offers Louisiana employers a powerful cause of action against highly trusted former employees for breach of fiduciary duty - one that is akin to an action...more

Winstead PC

Court Correctly Dismisses Breach Of Fiduciary Duty Suit Against Employee For Reporting Owner’s Criminal Behavior

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In Keel Recovery, Inc. v. Tri City Adjusters, Inc., a company sued its former employee for breach of fiduciary duty related to reporting certain alleged criminal activity related to the repossession of vehicles. No....more

Proskauer - Law and the Workplace

Third Circuit Recognizes Trade Secret Misappropriation Claim by Party Possessing (But Not Owning) the Trade Secret

It is not often that a United States Court of Appeals issues a decision on trade secrets, much less one involving the review of a bench trial that drew legal conclusions on the scope of trade secret law and the propriety of...more

FordHarrison

Non-Compete News: Georgia Court Holds Contractor Owes Fiduciary Duty/Duty of Loyalty

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In late 2019, the Northern District of Georgia (Atlanta federal court) addressed the duties owed when an independent contractor leaves one trucking company to work for another. In Wind Logistics Prof’l v. Universal Truckload,...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Trader Joe’s sued over their 401(k)

Two former employees of Trader Joe’s have sued the company alleging breaches of fiduciary duty in the management of the company’s 401(k) plan....more

Williams Mullen

Federal Judge Dismisses ERISA Fiduciary Breach Claim against University for Lack of Standing

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A federal district court judge in Washington D.C. dismissed an ERISA fiduciary breach suit brought by a former employee of George Washington University (“GW”), finding the former employee lacked standing to sue.  The...more

Holland & Knight LLP

Pennsylvania’s “Gist of the Action” Doctrine Does Not Preclude Trade Secret Claims

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Pittsburgh Logistics (PL) sued its competitor and former employee, alleging that the employee breached his employment agreement by working for the competitor and that he would inevitably disclose PL's confidential and trade...more

Patterson Belknap Webb & Tyler LLP

Fifth Circuit Considers Nonconsensual Third-Party Releases Outside of Bankruptcy

We’ve focused a lot on third-party releases lately, as bankruptcy courts across the country continue to evaluate whether and under what circumstances they are permissible. But, as a recent opinion of the United States Court...more

Holland & Knight LLP

“Head Start” Damages Affirmed Against Employee Who Started Competitor in China

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An often sought remedy in trade secret cases is unjust enrichment, which DTSA and several uniform state trade secret acts permit plaintiffs to seek for the unlawful benefit received by defendants "that is not addressed in...more

Spilman Thomas & Battle, PLLC

Trade Secret Misappropriation and Employee Fiduciary Breach in ASML v. XTAL Results in Large Judgement

On May 3, 2019, following a jury verdict rendered last November, a Santa Clara, California court entered a final judgment for $845 million in favor of semiconductor maker, ASML, in its suit against rival, XTAL, for stealing...more

Adler Pollock & Sheehan P.C.

Noncompetes with Massachusetts Employees: Subsidizing a Former Employee’s “Garden Leave”

Effective October 1, 2018, employers in Massachusetts, Rhode Island, and other states seeking to hold Massachusetts employees to noncompete agreements must meet the requirements of a new law passed by the Massachusetts...more

McDermott Will & Emery

Former Employee’s Release Agreement Bars ERISA Claim Against ESOP Fiduciary

McDermott Will & Emery on

A recent summary-judgment decision explains how individual releases can bar the individual from pursuing ERISA fiduciary-breach claims on behalf of the plan. A plan, employer or fiduciary that wants to ensure a release that...more

Butler Snow LLP

Court Allows Company to Surreptitiously Monitor Former Employee’s Social Media Account to Support its Trade Secrets Claim

Butler Snow LLP on

A federal court of appeals recently found that there was nothing wrong with a company monitoring a departed employee’s Facebook account and using that information to pursue a trade secrets claim against four former employees....more

McDermott Will & Emery

Georgetown University Defeats Retirement Plan Fee Litigation and “If a Cat Were a Dog, It Would Bark”

McDermott Will & Emery on

Recently, the US District Court for the District of Columbia dismissed a proposed class action lawsuit brought by former Georgetown employees under the Employee Retirement Income Security Act of 1974 (ERISA) over fees and...more

Holland & Knight LLP

Lack of Statutory Private Right of Action is No Bar to Privacy Suit

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HIPAA and several other privacy laws do not include a private right of action. This is cold comfort for healthcare providers, health plans and other members of the healthcare industry if a patient is able to demonstrate that...more

Bass, Berry & Sims PLC

Chris Lazarini Analyzes ERISA Claims Against Advisor Firm in Putative Class Action

Bass, Berry & Sims PLC on

Bass, Berry & Sims attorney Chris Lazarini analyzed the putative class active brought against T. Rowe Price Group by current and former employees alleging the firm breached its fiduciary duty by favoring its own financial...more

Butler Snow LLP

Tennessee Court of Appeals Tackles Issues Surrounding Preparation to Compete

Butler Snow LLP on

I’ve previously written about the circumstances in which taking preparatory measures to compete crosses the line so as to become unlawful. A couple of recent Tennessee Court of Appeals decisions provide more insight....more

Foley & Lardner LLP

Massachusetts Legislature Passes Comprehensive Noncompetition and Trade-Secrets Reform

Foley & Lardner LLP on

The Massachusetts General Court has passed legislation that, if signed by the governor, will comprehensively reform the law governing employee noncompetition agreements and trade-secret misappropriation. If enacted, these...more

Winstead PC

Court Rules On Lost Profits, Lost Good Will, Disgorgement, and Forfeiture Remedies Against A Former Employee For Breach of...

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In Samuel D. Orbison & Am. Piping Inspection v. Ma-Tex Rope Co., a jury found that a former employee breached fiduciary duties by working for a competitor while being employed by the plaintiff. No. 06-17-00112-CV, 2018 Tex....more

Winstead PC

Court Holds That There Is A Fact Issue By Former Employer Against Employee For Breach Of Fiduciary Duty In Self-Dealing...

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In Roberts v. Overby-Seawell Co., an employee sued his former employer for the failure to pay commissions. No. 3:15-CV-1217-L, 2018 U.S. Dist. LEXIS 47821 (N.D. Tex. March 23, 2018). ...more

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