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Trading Secrets A Law Blog on Trade Secrets, Non-Competes, and Computer Fraud

Category Archives: Breach of Fiduciary Duty

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Security Breach Liability – Its Complicated

Posted in Breach of Fiduciary Duty, Cybersecurity, Data Theft, Trade Secrets

The security breach news cycle continues. There remains a deluge of news stories about point-of-sale terminals being compromised, the ease of magnetic stripes being cloned, and the need for Chip and PIN technology being deployed on credit cards. The legal ramifications of all these events is just starting to become apparent – and it’s complicated. Individual liability is beginning to … Continue Reading

Top 10 Developments/Headlines in Trade Secret, Computer Fraud, and Non-Compete Law in 2013

Posted in Breach of Fiduciary Duty, Computer Fraud, Computer Fraud and Abuse Act, Cybersecurity, Data Theft, Espionage, International, Legislation, Non-Compete Enforceability, Practice & Procedure, Privacy, Restrictive Covenants, Social Media, Trade Secrets, Unfair Competition

By Robert Milligan and Joshua Salinas

As part of our annual tradition, we are pleased to present our discussion of the top 10 developments/headlines in trade secret, computer fraud, and non-compete law for 2013. Please join us for our complimentary webinar on March 6, 2014, at 10:00 a.m. P.S.T., where we will discuss them in greater detail. As with all Continue Reading

How Do I Get a TRO Against a Former Employee If Arbitration in FINRA Is Mandatory?

Posted in Breach of Fiduciary Duty, Practice & Procedure, Restrictive Covenants, Trade Secrets

By Nicholas De Baun

Occasionally, you may need emergency relief against a former employee who has absconded with a client list, your confidential information, and the clients themselves. If you are very unlucky, you may need to get a TRO against his new employer as well. If you, the former employee, and the new employer are all required to arbitrate … Continue Reading

California Federal Court Ships Fiduciary Duty and Unfair Competition Suit to Delaware Based Upon Forum Selection Clause

Posted in Breach of Fiduciary Duty, Non-Compete Enforceability, Practice & Procedure

By Robert Milligan and Grace Chuchla

Using a forum selection clause to transfer a case out of California federal court may have become easier thanks to a recent order from Judge Koh of the United States District Court for the Northern District of California.  In her order, Judge Koh granted defendants’ motion to transfer plaintiff’s complaint to Delaware federal … Continue Reading

2012 Year in Review On Significant Trade Secret, Non-Compete, and Computer Fraud Cases, Legislation, and Developments Now Available

Posted in Breach of Fiduciary Duty, Computer Fraud, Computer Fraud and Abuse Act, Data Theft, Espionage, Legislation, Non-Compete Enforceability, Practice & Procedure, Restrictive Covenants, Trade Secrets, Unfair Competition

We are pleased to announce the publication of the Trading Secrets Blog 2012 Year in Review.

The 2012 Review is a compilation of our significant blog posts from 2012 and is categorized by specific topics: Trade Secrets; Computer Fraud and Abuse Act; Non-Competes and Restrictive Covenants; and Legislation.

As the specific blog entries, including our Top 10 Developments/Headlines in Continue Reading

2012 Trade Secrets, Computer Fraud, and Non-Competes Webinar Series – Year in Review

Posted in Breach of Fiduciary Duty, Computer Fraud, Computer Fraud and Abuse Act, Data Theft, Espionage, Legislation, Non-Compete Enforceability, Practice & Procedure, Restrictive Covenants, Trade Secrets, Unfair Competition

Throughout 2012, Seyfarth Shaw LLP’s dedicated Trade Secrets, Computer Fraud & Non-Competes Practice Group hosted a series of CLE webinars that addressed significant issues facing clients today in this important and ever changing area of law. The series consisted of eight webinars:

1) Employee Privacy, Social Networking at Work, and the Computer Fraud and Abuse Act Standoff;
2) Employee Theft … Continue Reading

Virginia Federal Court Finds For Employer on Fidicuary Duty Claim Against Former Employee

Posted in Breach of Fiduciary Duty, Computer Fraud, Computer Fraud and Abuse Act, Practice & Procedure

By Michael Baniak

A Virginia federal court district court recently issued a significant decision awarding lost profits to an aggrieved employer for breach of fiduciary duty by a former employee. The Court found that the ex-employee was not able to deduct his services for the company as an expense against the damages award. Further, the Court found that the employer’s … Continue Reading

Breach of Fiduciary Duty and Trade Secret Misappropriation Alleged In “Preppy Clothing Dispute” Involving Fashion Designer Tory Burch

Posted in Breach of Fiduciary Duty, Trade Secrets, Unfair Competition

A high profile trade secret dispute among the board members of one of the fashion world’s most well-known companies has the American fashion elite taking sides. Last month, Christopher Burch filed a breach-of-contract and tortious interference complaint against his ex-wife, fashion mogul Tory Burch, in Delaware Chancery Court. In response, Tory filed counterclaims in early November, in which she accused … Continue Reading

Despite Allegations That Something Fishy Was Occurring, Kentucky Federal District Court Rules That Texas Corporate Defendant Was Not Subject To Personal Jurisdiction In Trade Secret Misappropriation Suit

Posted in Breach of Fiduciary Duty, Non-Compete Enforceability, Practice & Procedure, Restrictive Covenants, Trade Secrets

 

MPI, a Texas company, went to Kentucky and allegedly attempted to hire two Luvata employees, Foster and Meredith. Foster joined MPI soon thereafter. Over the course of the next few months while Meredith remained a Luvata employee, he and Foster allegedly spoke by phone repeatedly. In addition, prior to leaving Luvata for MPI, Meredith allegedly copied his employer’s computer … Continue Reading

Alleged Breach of Non-Disclosure Agreement Related To 3-D Technology At Issue In New California Suit Involving Hollywood Heavyweights

Posted in Breach of Fiduciary Duty, Practice & Procedure, Trade Secrets, Unfair Competition

In a legal matchup involving some Hollywood heavyweights, Thomas Randolph filed suit in Los Angeles Superior Court recently, alleging he was defrauded out of his stake in a prominent 3-D movie technology venture.

Randolph sued William Sherak, the son of Motion Picture Academy of Arts and Sciences President Tom Sherak and a prior chairman of 20th Century Fox’s domestic film … Continue Reading

California Federal District Court Finds That Plaintiffs May Assert A Claim For Alleged Misleading Actions of Agent and Misuse of Confidential Information Not Rising To Level Of A Trade Secret In Youth Hostel Dispute

Posted in Breach of Fiduciary Duty, Practice & Procedure, Trade Secrets

By Robert Milligan and Jeffrey Oh

In business, as in life, trust and communication are key to healthy and productive relationships. When these crucial elements are lost, as in the case of What 4 LLC v. Roman & Williams, Inc., 2012 WL 1815629 (N.D.Cal.), the fallout is often contentious and requires court intervention.

In a recent decision granting in part … Continue Reading

North Carolina Federal District Court Confirms Importance of Alleging Actual Harm in Pleadings

Posted in Breach of Fiduciary Duty, Trade Secrets

On April 25, 2012, a federal judge in North Carolina issued a ruling granting in part and denying in part motions to dismiss involving claims for trade secret misappropriation, breach of contract, and conversion in a dispute between two pharmaceutical companies in the case of River’s Edge Pharmaceuticals v. Gorbec Pharmaceutical Services, Inc. This decision confirms, to an extent, the need to … Continue Reading

Ohio Appellate Court Upholds Entry of Temporary Injunction

Posted in Breach of Fiduciary Duty

The Ohio 12th District Court of Appeals recently uphelda lower court’s injunction against two former employees and their new employer in light of defendants’ apparent breach of duty of loyalty, misappropriation of trade secrets, and tortious interference with business relations. DK Prods., Inc. v. Miller, Case No. CA2008-05-060, 2009 WL 243089 (Ohio Ct. App. 12 Dist. Feb. 2, 2009)

System … Continue Reading

Supreme Court of Canada Upholds Verdict Against Employee Defectors

Posted in Breach of Fiduciary Duty

 In RBC Dominion Securities Inc. v. Merrill Lynch Canada Inc., 2008 SCC 54, the Supreme Court of Canada recently addressed a verdict against a group of departing employees by a British Columbia trial court.

RBC operated an office in Cranbrook, British Columbia. In November 2000, almost every employee in the office abruptly resigned and moved to Merrill Lynch.  Don Delamont, … Continue Reading

Massachusetts Federal Court Dismisses Claim Against New Employer for Aiding and Abetting Employee’s Violation of Fiduciary Duty of Loyalty to Former Employer.

Posted in Breach of Fiduciary Duty

TalentBurst, Inc. v. Collabera, Inc., Civ. No. 08-10940-WGY (D. Mass. July 25, 2008).

A federal court in Boston has dismissed a complaint brought by information technology temp agency TalentBurst against competitor Collabera for aiding and abetting a breach of fiduciary duty by TalentBurst’s former employee, who subsequently joined Collabera, on the ground that the employee owed no fiduciary duty of … Continue Reading

Two Senior Executives Liable for Millions in Misappropriation and Breach of Fiduciary Duty Case

Posted in Breach of Fiduciary Duty, Trade Secrets, Unfair Competition

Associated Press (Anna Jo Bratton) is reporting that a state district court judge in Lancaster County, Nebraska tagged two Nebraska Municipal Power Pool executives with millions of dollars in damages arising out of their scheme to use American Public Energy Agency’s "company information, financial data and copyrighted material."  View Article. It appears that Nebraska Municipal Power Pool ("NMPP") previously provided services to American Public Energy Agency.  … Continue Reading

Recent Headlines Underscore Need for Protective Measures

Posted in Breach of Fiduciary Duty, Computer Fraud, Computer Fraud and Abuse Act, Practice & Procedure, Trade Secrets

A company’s trade secrets may be some of its most important assets.  Recent headlines underscore their importance, and vulnerability: … Continue Reading

Recently, an employee was arrested at the airport and over 1,000 company proprietary documents containing trade secrets were seized that the employee was attempting to transport with her to her new job.

 A national retailer recently was hit with a $21.5 million

Home Builder Alleges Trade Secret Theft Of Strategic Plan By Former Executive

Posted in Breach of Fiduciary Duty, Trade Secrets

One of the nation’s large home builders recently filed suit against a former executive in federal court in Albuquerque, New Mexico for alleged misuse of the company’s trade secrets related to a highly confidential internal strategic plan.

Pulte Home Corporation filed suit against former executive Lynn Galindo, a former area vice president based out of Las Vegas, Nevada, in the … Continue Reading