Noncompete and Trade Secrets

Our experience includes working with financial services companies, hospitality industry clients, technology and media entities, entertainment companies, service providers, energy companies, manufacturers and industrial interests, healthcare organizations, staffing services, executive search firms and recruiters, pharmaceutical companies and their sales and marketing professionals, and beyond. Some representative matters include:

• Prosecuting claims for a global consulting firm that lost 35 senior professionals due to competitor’s disregard of noncompete and nonsolicitation covenants and related business torts. Defeated competitor’s attempt to preemptively litigate the case in California, where noncompetes are not enforced, and successfully prevailed on all pretrial motions with case scheduled to be tried to a jury in 2021.
• Litigated cases for more than a decade for a Wall Street investment bank in state and federal courts in New York and nationally and FINRA arbitrations involving onboarding and exiting employees; theft of trading algorithms, customer lists and other trade secrets information; and solicitation of client relationships.
• Defending a large healthcare system in a matter involving claims brought by a former senior vice president of business development for failure to pay commissions, and counterclaims by the client for breach of noncompete and nonsolicitation covenants, tortious interference, and bonus repayment. On behalf of the company, we obtained a temporary injunction against the former employee and are further seeking a permanent injunction to prevent him from working for three years in violation of his restrictive covenants. In December 2019, we obtained summary judgment on liability against the former employee on breach of his noncompete and nonsolicitation covenants. On the eve of the trial, the matter settled at terms highly favorable to our client.
• Represented one of Ohio’s largest medical practice groups in a matter involving a former physician who violated noncompete provisions of his employment contract when he resigned to work for a competitor. After the court granted injunctive relief to our client, preventing the physician from practicing, the matter was settled at terms favorable to our client. In another matter for the same medical practice group, we were able to protect our client’s interests in opposing the enforceability of an employment agreement for a world-renowned physician it recently hired from a competitor so that he could practice for our client without restrictions. These matters represent successful results for our client that go beyond just the financial value and investment of millions of dollars, as they also involve the protection of public health and our client’s goodwill and its viability as the largest group employer of clinical specialists in the region.
• Defended a large integrated solid waste services company in a hotly contested trade secrets misappropriation, breach of agreement and tortious interference case brought against a former employee and his new employer in Atlanta. We initially obtained a temporary injunction and ultimately a permanent final injunction against both defendants, and a monetary settlement from the former employee.
• Represented an oil and gas company before the Texas Supreme Court in a precedent-setting case involving the Texas Uniform Trade Secrets Act. The case was significant because this opinion is the first published opinion specifically providing that under the Act, the court (upon a proper balancing test and inquiry) may exclude a competitor’s representatives from the injunction hearing while trade secrets testimony is elicited; and dicta in the case support the “inevitable disclosure doctrine” on a broader context.
• Defended a home health provider in a matter challenging the enforceability of the provider’s noncompete agreements with respect to referral sources. In a unanimous decision, the Florida Supreme Court agreed with our client’s position and upheld a Florida district court of appeal’s decision finding that referral sources in the home health industry are a legitimate business interest protectable under Florida law.
• Represented one of the world’s leading suppliers in the field of energy technology in a case against four former employees who collectively left our client and joined a new employer, a competitor, for trade secrets misappropriation, tortious interference and breach of contract. A stipulated permanent injunction was obtained against all defendants and monetary relief was awarded to the client.
• Represented a major financial institution in a case brought against three former employees and their new employer, a competitor, for breach of noncompete agreements, tortious interference and defamation. Obtained an extremely favorable settlement, including permanent injunctive relief against all defendants and a significant monetary payment to our client, the financial institution.