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Breach of Duty Non-Compete Agreements

Balch & Bingham LLP

Looking for Certainty: Protection From Competition Following the FTC’s Rule Banning Non-Compete Clauses

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On Tuesday, April 23, 2024, the Federal Trade Commission (“FTC”) approved a final Non-Compete Clause Rule (“Rule”) banning as unfair competition all non-compete provisions entered with workers on or after the effective date...more

Rivkin Radler LLP

The Employment Law Reporter: Autumn 2023

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Here is what we cover in this issue of Employment Law Reporter Autumn 2023: • The U.S. Court of Appeals for the Second Circuit has affirmed a decision by the U.S. District Court for the Southern District of New York...more

ArentFox Schiff

Claims Narrowed in Jack Nicklaus Non-Competition Case Over IP Sale

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On April 12, 2023, a Manhattan judge in the lawsuit regarding the sale of golf legend Jack Nicklaus’s intellectual property portfolio narrowed the claims against Nicklaus. In 2007, Nicklaus sold his intellectual property...more

PilieroMazza PLLC

Disloyal Employees: Disgorgement Offers Employers Some Reprieve

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In many states, employees owe a duty of loyalty to their employer as long as they remain on the employer’s payroll. In other words, employees must generally act in the best interests of their employer—and not solely for their...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

Proskauer - California Employment Law

Agreement Not To Compete With Employer While Still Employed Is Enforceable

Techno Lite, Inc. v. Emcod, LLC, 44 Cal. App. 5th 462 (2020) - Techno Lite employees Scott Drucker and Arik Nirenberg entered into an agreement with Techno Lite not to compete with Techno Lite while they were still...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

Farrell Fritz, P.C.

Advance! Amend! Retreat!

Farrell Fritz, P.C. on

The title of this post describes not an army maneuver, but the outcome of a recent lawsuit in Delaware Chancery Court for advancement of litigation expenses in which...more

Carlton Fields

New York Court Compels Arbitration of Commercial Marijuana Dispute

Carlton Fields on

The defendants moved to compel arbitration of a complex dispute concerning the parties’ investment in medical marijuana companies. The plaintiff claimed that the defendants breached a non-compete agreement and fiduciary...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

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...

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

Jones Day

Massachusetts Noncompete and Trade Secret Reform Will Have Far-Reaching Impact

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Businesses across the country are feeling the effects of a pair of laws recently enacted in Massachusetts. The "garden leave" clause in Massachusetts' new noncompete law dictates that during the period in which a departed...more

Littler

Littler Global Guide - Sweden - Q3 2018

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Policy Requiring All Employees to Shake Hands Discriminated Based on Religious Belief - Precedential Decision by Judiciary or Regulatory Agency - During a job interview, a job seeker refused to shake the company...more

Sunstein LLP

August 2018 IP Update - Non-Competition Agreements: Massachusetts Meets California Halfway

Sunstein LLP on

California has long led the nation in its disdain for noncompetition agreements. Pressed by venture capitalists who believe that this gives California an advantage over other states, the Massachusetts legislature has finally...more

Butler Snow LLP

Tennessee Court of Appeals Tackles Issues Surrounding Preparation to Compete

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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

Mintz - Employment Viewpoints

New Massachusetts Non-Compete Law Goes Into Effect October 1, 2018

Non-compete reform has come to Massachusetts, with wide-ranging legal and practical implications for any employers with workers in Massachusetts. Employers have just six weeks to consider and adopt a new approach to...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

Seyfarth Shaw LLP

Can Attorneys Be Liable For Directing Clients To Breach Non-Competes? One Federal Court Says Maybe

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In a classic example of bad facts creating bad law, a federal judge in Kentucky recently denied a motion to dismiss claims brought against attorneys who allegedly counseled employees to breach a non-compete agreement and...more

Jaburg Wilk

An Easy and Effective Way for Employers to Protect Themselves

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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

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...

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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

Butler Snow LLP

When Does Preparing to Compete Cross the Line?

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An employee or former employee who starts preparing to compete with his employer or former may get tripped up in one of two scenarios: (1) breaching a fiduciary duty of loyalty; or (2) running afoul of a noncompete...more

Spilman Thomas & Battle, PLLC

An Argument for the Use of Stock Options with Forfeiture Clauses for Breach of Duty of Loyalty

Introduction Jimmy John’s In 2014, Emily Brunner (“Brunner”) and Caitlin Turowski (“Turowski”) filed a complaint in Illinois against the sandwich company, Jimmy John’s, and its franchise affiliates. The complaint was amended...more

Winstead PC

Court Reverses Judgment Dismissing Breach Of Fiduciary Duty Claim Because No-Evidence Summary Judgment Motion Was Not Sufficiently...

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In Tex v. Iom, a former employer sued a former employee based on a covenant not to compete and breach of fiduciary duty and sued the new employer for tortious interference. No. 12-14-00254-CV, 2016 Tex. App. LEXIS 7317 (Tex....more

Winstead PC

Court Holds that Disgorgement Award for Breach of Fiduciary Duty Was Neither Punitive Nor Excessive and that Exemplary Damages...

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A court of appeals recently issued an opinion rejecting a fiduciary’s claims regarding the excessiveness of the trial court’s judgment that awarded disgorgement and exemplary damages. In Swinnea v. ERI Consulting Engineers,...more

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