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Non-Compete Agreements › Trade Secrets › Breach of Contract

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... more +
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 -
Seward & Kissel LLP

Employment Litigation Roundup: April 2024

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Employer sues former traders for using an allegedly confidential trading strategy but loses bid for emergency injunctive relief. On April 12, Jane Street Group LLC (“Jane Street”) sued two of its former traders and...more

Lewitt Hackman

Franchisee 101: Braking The Competing Business

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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

Jackson Lewis P.C.

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

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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

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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

Lathrop GPM

Pennsylvania Federal Court Rules It Has Subject Matter Jurisdiction to Decide Trade Secret Claim but Dismisses as Untimely...

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A federal court in Pennsylvania granted in part and denied in part a former franchisee’s motion to dismiss a franchisor’s allegation that she misappropriated trade secrets and breached the franchise agreement. JTH Tax, LLC v....more

Lewitt Hackman

Franchisee 101: An UnBakeable Non-Compete

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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

McGlinchey Stafford

Do I Have Standing Under the TCPA? - McGlinchey Commercial Law Bulletin - July 11, 2023

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Standing- Dickson v. Direct Energy, LP, 6th Cir. Case No. 22-3394. In this putative class action, the appellant appealed the district court’s decision to dismiss his Telephone Consumer Protection Act (TCPA) claim for...more

Bradley Arant Boult Cummings LLP

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

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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

Lewitt Hackman

Franchisor 101: Court Hits Brakes on Former Franchisees

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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

McDermott Will & Emery

Preliminary Injunction, Meet Irreparable Harm

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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

McDermott Will & Emery

Stryking Noncompete Preliminary Injunction

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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

Foley & Lardner LLP

Protecting Trade Secrets In States That Disfavor Noncompetes

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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

AEON Law

Patent Poetry: Court Awards $500K in Attorneys’ Fees to Allstate in Trade Secret Case

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A New Jersey federal court has ruled in favor of Allstate Insurance in a dispute over attorney’s fees in a case involving allegations of employee misuse of company confidential information and trade secrets. Defendants...more

Fox Rothschild LLP

Unintended Consequences of Franchise Rescission Rights

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The right to rescind (or void) a contract is an extraordinary remedy. However, as franchise lawyers know, certain states provide franchisees a right to rescind a franchise agreement in certain situations, particularly where a...more

Seyfarth Shaw LLP

Lessons from a Staffing Misappropriation and Non-Compete Trial

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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 

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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

Lathrop GPM

Franchise Memorandum - Issue #270

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Second Circuit Affirms Dismissal of Franchisees’ Minimum Wage and Unjust Enrichment Claims - A divided panel of the Second Circuit Court of Appeals has concluded that claims of improper wage deductions and unjust...more

McAfee & Taft

When is hiring a competitor’s employee ‘racketeering’?

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When hiring new employees – especially those who are currently employed or who recently have been employed by a competing company or organization – it’s always a best practice to ask them if they are subject to an employment...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

Orrick - Trade Secrets Group

Texas Jury Rejects Digital Marketing Company’s $50 Million Trade Secret Misappropriation Claim

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After a weeklong June trial, a Texas federal jury awarded Six Dimensions, Inc. (“Six Dimensions”), a digital marketing firm, $287,000 for its breach-of-contract claim against its former employee but rejected its behemoth $50...more

Shook, Hardy & Bacon L.L.P.

Zillow Sues Rival Compass Alleging IP Theft And Breach Of Contract Over Its Artificial Intelligence, Machine Learning, And Cloud...

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Switching from defense to offense, Zillow Group, Inc., best known for its residential real estate marketplace technology, recently filed a lawsuit in the U.S. District Court for the Western District of Washington alleging a...more

McAfee & Taft

Ruling offers guidance for companies seeking injunctions to protect trade secrets

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Customers, trade secrets, and proprietary information are the lifeblood of any company. For this reason, companies routinely have employees sign confidentiality agreements and, to the extent they are enforceable,...more

McDermott Will & Emery

Turbulence on Breach of Employment Agreement, Trade Secret Misappropriation

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Addressing a bench trial decision concerning a former employee’s retention of confidential information and violation of a non-compete provision, the US Court of Appeals for the Fourth Circuit found no abandonment of the...more

Knobbe Martens

Enforcing a Non-Compete Agreement? – One Size Does Not Fit All

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Two high-end, off-price fashion brands are duking it out over an employee jumping ship from Century 21 Department Stores, LLC to Rue Gilt Groupe. On November 5, 2018, Century 21 sued Rue Gilt Groupe and Berenice Arcuri in...more

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