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Pennsylvania Opinion Highlights Need to Ensure Appropriate Geographic Scope and to Lay Groundwork for Protecting Interest in Specialized Training in Noncompetes

In Peter Zimmerman Architects, Inc. v. Toates, No. 3022 EDA 2013 (Aug.19, 2014), a firm specializing in custom, residential architecture sought to enforce a noncompetition agreement against a former employee and the new architectural firm he founded.  As written, the noncompete would have prevented the former employee from (1) participating in the business of residential architecture for three years within an area extending 25 miles from the company’s office and (2) engaging in residential architecture for the renovation or new construction of one-of-a-kind properties for five...

Canada: Circumventing the Disdain for Non-Competes

The Ontario Superior Court of Justice recently upheld a contract requiring a senior executive to provide six months’ prior notice before resignation.  The court agreed with the employer that the senior executive could not move to a competitor during the notice period, effectively prohibiting him from competing during a contractual notice period.  Continue reading on Littler's Global Employment Law blog.

Federal Court's Practical Approach to Enforcement of a Restrictive Covenant Provides Business-Friendly Decision

On April 11th, a North Carolina federal court granted an insurance business’s motion for preliminary injunction against six of its former independent insurance agents and enjoined further violations of a restrictive covenant.  In Superior Performers, Inc. v. Meaike, 2014 U.S. Dist. LEXIS 50302 (M.D.N.C. Apr. 11, 2014), the court took on a number of discreet legal issues related to the drafting of employee restrictive covenants in North Carolina and, in a refreshingly practical manner that prioritized substance over form, reached several employer-friendly conclusions. The...

Reversal of Nearly $1 Billion Award and 20-year Injunction Illuminates the Importance of Maintaining the Confidentiality of Trade Secrets

Companies seeking to protect their trade secrets should take note of the U.S. Court of Appeals for the Fourth Circuit’s decision to vacate a $920 million dollar jury verdict and 20-year non-compete injunction awarded to the plaintiff DuPont Company in E.I. DuPont De Nemours & Co. v. Kolon Industries, Inc.  No. 12-1260 (4th Cir. Apr. 3, 2014).  The Fourth Circuit held that the District Court for the Eastern District of Virginia, “abused its discretion and acted arbitrarily” when it excluded evidence defendant Kolon Industries sought to introduce at trial to...

D.C. Court Addresses Inevitable Disclosure Doctrine for the First Time, Leaves Open Possibility for Future Use in Trade Secret Litigation

Addressing the “inevitable disclosure doctrine” for the first time, the U.S. District Court for the District of Columbia’s recent decision in Info. Strategies, Inc. v. Dumosch1 left open the possibility of the doctrine’s use in establishing trade secret misappropriation claims.  A shorthand method of proof, the inevitable disclosure doctrine creates an inference that a former employee will inevitably disclose trade secrets while working in similar employment with a competitor.  Although the Info. Strategies court did not fully adopt the doctrine, the...

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Format: 2014-09-01
Format: 2014-09-01