News & Analysis as of September 25, 2024

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Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a certain industry or locale. The purpose of these agreements is to protect employers or business purchasers from competition stemming from former employees or former owners of a business. less -

All Eyes on Pennsylvania Federal Court After Texas Court Issues Limited Injunction Against FTC Non-Compete Ban

Baker Donelson on 7/10/2024

A first-in-nation ruling in Texas federal court casts serious doubt on the enforceability of the broad-reaching new Federal Trade Commission (FTC) Noncompete Rule. For any company seeking to legitimately protect its...more

Franchisee 101: Braking The Competing Business

Lewitt Hackman on 5/2/2024

A Massachusetts federal district court enforced a non-compete provision in a franchise agreement to enjoin former franchisees from operating a different branded automotive business at the same location as the former...more

Lawsuits Filed To Block FTC’s Non-Compete Ban

Seyfarth Shaw LLP on 4/30/2024

At least three lawsuits have now been filed against the FTC to block implementation of its new rule to ban non-competes....more

Employment Litigation Roundup: November 2023

Seward & Kissel LLP on 12/4/2023

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

Rival Boston Cider Companies Enter Trade Secret Dispute

Seyfarth Shaw LLP on 11/13/2023

Boston Beer Corporation (“Boston Beer”) recently filed suit seeking monetary and injunctive relief in Massachusetts state court, alleging a former employee and his new employer, the competing alcoholic beverage company...more

Franchisee 101: An UnBakeable Non-Compete

Lewitt Hackman on 9/29/2023

A Minnesota federal court denied cookie dough franchisor Cookie Dough Bliss Franchising’s motion for a temporary restraining order and preliminary injunction against a former Minnesota franchisee and its owners....more

LADR Case Notes (August 2022-October 2022) and FLJ Currents (Winter 2023)

Bradley Arant Boult Cummings LLP on 6/12/2023

A gym franchisor recently secured a preliminary injunction against its former franchisee prohibiting the franchisee from operating an independent gym on the same location and using the franchisor’s trade secrets. Chris...more

Preliminary Injunction, Meet Irreparable Harm

McDermott Will & Emery on 4/13/2023

The US Court of Appeals for the Fifth Circuit, in a case where an ex-employer sought preliminary injunctive relief based on an alleged breach of non-disclosure and non-compete agreements and alleged misappropriation of...more

Stryking Noncompete Preliminary Injunction

McDermott Will & Emery on 3/10/2023

The US Court of Appeals for the Sixth Circuit upheld a district court’s grant of a preliminary injunction restricting a former employee from working for conflicting organizations or communicating with a competitor’s counsel....more

The Five Pitfalls for Employers to Avoid When Exiting Employees

ArentFox Schiff on 12/1/2022

In today’s competitive employment market, employee resignations are reaching near record-highs. Whether a separation is voluntary or involuntary, employee terminations often happen quickly and involve many moving parts. To...more

District Court Holds Non-Party in Contempt for Violating Preliminary Injunction

Holland & Knight LLP on 10/18/2021

In a recent decision out of the U.S. District Court for the District of Minnesota, a court ruled that a non-party to a lawsuit could be held in contempt for violating a preliminary injunction entered against the defendants in...more

The Franchise Memorandum - Issue # 266

Lathrop GPM on 6/4/2021

Welcome to The Franchise Memorandum by Lathrop GPM. Below are summaries of recent legal developments of interest to franchisors. Post-Termination Injunction: Noncompete Covenants - California Federal Court Enforces...more

Practice What You Preach: Trade Secret Rules (Of Course) Apply to Lawyers

Sheppard Mullin Richter & Hampton LLP on 5/5/2021

When trade secret lawyers advise executives transitioning to a job with a competitor, they typically tell them to “take nothing with you” on the way out – meaning that no confidential, proprietary or trade secret information...more

Part 27 of the “The Restricting Covenant Series”: Disgorgement

Faegre Drinker Biddle & Reath LLP on 11/18/2020

Most of the action in restrictive covenant cases occurs in the beginning of the litigation at the temporary or preliminary injunction stage when a company seeks to stop someone from doing something immediately. However,...more

Fifth Circuit Holds that Reformation of Texas Non-Competes Is Authorized, and Perhaps Required, at Preliminary Injunction Stage

Seyfarth Shaw LLP on 8/25/2020

On August 7, 2020, the Fifth Circuit addressed an issue presently undecided by the Texas Supreme Court; namely, whether reformation of an overbroad non-compete restriction is appropriate, and perhaps even required, at the...more

Trade Secrets 101: If You Want To Call Something a Trade Secret, You Have To Take Steps To Protect It

Tucker Arensberg, P.C. on 12/10/2019

Courts have long held that, in order for something to be considered a “trade secret,” a business owner has to actually make efforts to keep the supposed trade secret a secret. It stands to reason that if no efforts are made...more

Intent To Use Is Sticking “Pointe” In Denial Of Preliminary Injunction

Orrick - Trade Secrets Group on 11/6/2018

On October 25, the U.S. District Court for the District of Massachusetts denied motions for injunctive relief in a case involving trade secrets allegedly stolen by a departing consultant using his personal computer to sync...more

Covenant Not to Compete/Landfill Gas Services: Federal Court Addresses Request for Preliminary Injunction

Mitchell, Williams, Selig, Gates & Woodyard,... on 12/12/2017

Like many service industries, conflicts sometimes arise between competitors in the environmental service industry segments. A federal district court, Western District, North Carolina (“Court”) addressed in a September 29th...more

Is Customer Information A Trade Secret? Not So Fast!

Farrell Fritz, P.C. on 11/2/2017

Under what circumstances do customer information and business operations constitute “trade secrets” that may be enjoined from use by a former employee ? A recent decision by Justice Elizabeth H. Emerson on this issue serves...more

Swimming Pool Company’s Non-Compete Claim Takes a Dive

Zuckerman Spaeder LLP on 9/8/2017

When a company believes that an employee has breached a non-compete agreement by going to work for a competitor, one remedy it can seek is a preliminary injunction. A preliminary injunction is meant to preserve the status quo...more

First Published Opinion From New Business Court Judge Conrad

Brooks Pierce on 3/29/2017

Business Court Judges don't have to issue written Opinions in cases granting Preliminary Injunctions. (G.S. § 7A-45.3 limits the obligation to issue a written Opinion to rulings rendered per NCRCP 12, 56, 59, and 60). ...more

Don’t Friend My Friends: Nonsolicitation Agreements Should Account for Social Media Strategies

Orrick - Trade Secrets Group on 2/16/2017

As social media becomes an important part of many companies’ sales and branding strategies, issues relating to companies’ ability to protect their investments in such strategies are emerging. Indeed, this blog has previously...more

Defending A Former Employee On a Non-Compete Or For Misappropriation Of Trade Secrets? Read This.

Brooks Pierce on 2/16/2017

Do you really have to rush to Court to obtain an injunction for a misappropriation of trade secrets? Maybe not. But for an injunction enforcing a non-compete agreement, maybe yes. ...more

“It’s a Free Country, Right?” Court Declines to Enjoin Ex-Free Country Ltd. Employees From Contacting Customers on Purloined...

Orrick - Trade Secrets Group on 1/20/2017

Within days of each other, your clothing company?Free Country Ltd.?loses two employees who decamp to a rival to set up a competing apparel line. You discover that just before leaving, they transferred some 50,000 documents...more

THANKSGIVING EDITION [FROM THE ARCHIVES]: Court Protects Quizno’s Franchise Turkey Trade Secrets

Orrick - Trade Secrets Group on 11/23/2016

This Thanksgiving, Trade Secrets Watch is serving a delicious tale about protecting trade secrets in a franchising relationship. In 1994, Quizno’s entered into a franchise agreement with Robert Kampendahl, an...more

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