Eastern District Court of VA Grants Motion to Dismiss Employer’s Non-Compete Complaints

Wednesday, November 18th, 2009 | Breach of Contract, Noncompete Litigation, Noncompetition Litigation, Tortious Interference | No Comments

On November 16, 2009, Judge Trenga of the U.S. District Court for the Eastern District of Virginia granted defendants’ Motions for Summary Judgment in a suit brought by an employer against former employees for breach of non-compete agreements.  The suit also alleged various breach of contract and tortious interference with business claims. 

In the case, Deltek, Inc. v. Iuvo Systems, Inc., the Court applied a balancing test.  The Court acknowledged Deltek’s legitimate interests in preventing former employees from competing with its proprietary services through the use of Deltek’s confidential and proprietary information as well as the employees’ Deltek funded training and expertise.  However, the Court found that the agreements were too broad and held that Deltek’s interests were eclipsed by the employees’ interests and public policy.  In deciding, the Court took an unusual approach of comparing the agreements of two employees which extended one and two years.  The Court drew a negative inference and found the existence of a one year agreement to suggest “that Deltek itself recognizes that a two year restriction is longer than its legitimate interests require.”

Employers have a legitimate interest in protecting their proprietary information and investment in their labor force.  This interest must be balanced with the public’s interest in promoting gainful employment and economic growth.  Anyone asked to sign a non-compete agreement should give it careful consideration and realize the potential for long-term consequences.

For information on The Employment Law Group® law firm’s Non-Compete Practice, click here.

The Employment Law Group® Law Firm Publishes Article on Non-Compete Litigation

Wednesday, June 17th, 2009 | Noncompete Litigation | No Comments

Litigation News has published an article by Scott Oswald and Jason Zuckerman of The Employment Law Group® law firm on non-compete litigation.  The article discusses strategies for defending non-compete claims, including filing a declaratory judgment against the employer; asserting the “unclean hands” defense; seeking sanctions against an employer attempting to enforce an invalid non-compete; and potential claims available where an employer tries to enforce an invalid non-compete.  To read the article, click here.  Additional information on The Employment Law Group® law firm’s Non-Compete Litigation Practice is available at http://www.employmentlawgroup.net/PracticeAreas/NonCompeteLitigation.asp.

Saint-Gobain Claims Ex-Employees Stole Trade Secrets

Friday, November 14th, 2008 | Noncompete Litigation | No Comments

Saint-Gobain Ceramics & Plastics, Inc. (“Saint-Gobain”) is suing two former employees and their new employer for allegedly stealing trade secrets and proprietary information related to the design and manufacturing process of high temperature gas tubes that are used to detect radiation. 

Saint-Gobain is seeking an injunctive relief, lost profits, punitive damages, and attorneys’ fees and costs.  For information about The Employment Law Group® law firm’s Non-Compete Litigation Practice, click here.

District Court Orders Former IBM Executive to Cease Employment with Apple

Friday, November 14th, 2008 | Noncompete Litigation | No Comments

On November 7, 2008, a federal judge granted IBM’s motion for a preliminary injunction against Mark Papermaster and ordered the former senior executive to immediately cease employment with Apple Inc. (“Apple”).  In the complaint, IBM alleged that Papermaster breached the terms of his noncompetition agreement by accepting an executive position with Apple, a competitor of IBM and that his continued employment with Apple would cause IBM irreparable harm because Papermaster had access to IBM’s trade secrets and other confidential information.

This case highlights the importance of closely evaluating the terms of a noncompetition agreement before accepting a new job and being prepared to defend against a former employer’s attempt to enforce a noncompetition agreement.  The Employment Law Group® law firm has successfully represented executives and managerial employees in litigation concerning the enforceability of noncompetition agreements.  For more information about the firm’s Non-Compete Litigation Practice, click here.