In a post-script to the SEC’s April 1 cease and desist order penalizing KBR, Inc. for a confidentiality statement that failed to carve out protected federal whistleblower complaints (our alert on it here), SEC Office of the Whistleblower Chief Sean McKessy today made additional comments that suggest public companies as well as private companies that … Continue Reading
Delaware has long been one of the jurisdictions most friendly to the interests of corporations and is the state of incorporation for a significant majority of corporations. While that trend does not seem likely to change, a new Delaware Chancery Court decision should give pause to choice of law decisions of Delaware … Continue Reading
Status of the case. A multi-count complaint filed in the D.C. District Court charged two former employees of the plaintiff with breaches of contract and tort violations. The defendants moved to dismiss. The court held that some of the … Continue Reading
On Tuesday, March 10th at 12:00 p.m. central, in the second installment of our 2015 Trade Secret Webinars, Seyfarth attorneys Scott Humphrey, Jason Stiehl and James Yu will focus on trade secret and client relationship considerations in the banking and finance industry, with a particular focus on a firm’s relationship with its FINRA members. Topics will include:Practical steps financial… Continue Reading
A recent decision by the Georgia Court of Appeals, Holland Ins. Group, LLC v. Senior Life Ins. Co., 766 S.E.2d 187 (Nov. 20, 2014), includes several excellent reminders regarding the enforceability (and unenforceability) of restrictive covenants in Georgia.
Relevant Facts and Holding
William Holland and Senior Life Insurance Company entered into an agreement (“Agreement”) authorizing Holland to sell Senior Life’s … Continue Reading
The recent decision of the High Court in Re-use Collections Limited v. Sendall & May Glass Recycling Ltd. serves as a useful reminder for employers: restrictive covenants introduced during the employment relationship (rather than at the point of hiring) require specific consideration if they are to be enforceable. Under UK law, changes to employment terms require consideration if they are … Continue Reading
As many readers will know, non-compete clauses in employment contracts are only valid in France if, among other conditions, an employee receives a financial consideration of 40 to 60% salary depending on the sector and the role for the duration of the restriction. But do confidentiality clauses need to be subject to the same treatment?
The recently published decision of … Continue Reading
Several ex-employees now may compete with their former employer, and may solicit its employees and customers, after a federal judge in the Eastern District of Washington held that the restrictive provisions in their employment agreements are unenforceable.
The agreements, drafted by the former employer, contained a choice-of-law provision which the former employer tried unsuccessfully to invalidate. The court also held … Continue Reading
When & Where: This program will be held at three different locations.
November 13th at Seyfarth Shaw’s San Francisco Office (lunch and registration will begin at 11:30 a.m., program will begin at noon and go until 1:30 p.m.).
November 18th at Seyfarth Shaw’s … Continue Reading
An employee executed an employment agreement which included a two-year covenant not to solicit the employer’s customers. When the employer sold the company’s assets, the sale included that agreement. The employee then went to work for the assets purchaser but subsequently resigned. The Texas Appellate Court held that the two-year period began to run on the date the assets seller … Continue Reading
In an effort to preempt another “Bridgegate” scandal, New Jersey State Senator Loretta Weinberg has sponsored a bill to extend whistleblower protection to employees who disclose incidents of wasted public funds, governmental abuse, or gross mismanagement. On October 9, 2014, the New Jersey Senate’s Labor Committee approved Bill S-768, which, … Continue Reading
In many cases, the execution of a mutual release is often the last step in resolving a trade secret or non-compete case. Typically included in the release is an affirmation that all confidential information has been returned and the once former adversaries promise not to sue one another. Once the release is executed, the fight is usually over. Usually, but … Continue Reading
The plaintiff corporation — now a Delaware LLC based in Kansas — was headquartered in Alberta, Canada at the time its employees signed agreements containing confidentiality and non-compete covenants. The agreements designated the applicable law to be that of Alberta. When its ex-employees allegedly violated the covenants, the plaintiff sued them and their new employer in a Kansas federal court. … Continue Reading
The fifth webinar in the 2014 series, was presented by Wan Li, Ming Henderson, Justine Turnbull and Daniel Hart, focused on non-compete and trade secret considerations from an international perspective. Specifically, the webinar involved a discussion … Continue Reading
In Sunrise Brokers LLP v Rodgers  EWHC 2633 the High Court held that an employer does not have to accept that a ‘walk out’ by an employee will terminate the contractual relationship. The employer has … Continue Reading
They are scheduled to be joined by in-house counsel Pamela Davidson from U.S. Foods, Karen Tompkins from Stryker, Lisa Seilheimer from CDW, and Jerry Cohen from Burns & Levinson LLP.
The panel will … Continue Reading
On Tuesday, August 26, 2014 at 12:00 p.m. Central, Seyfarth attorneys Scott Humphrey, Jason Stiehl and Rebecca Woods will present the sixth installment in its series of 2014 Trade Secret Webinars. They will focus on trade secret and client relationship considerations in the banking and finance industry, with a particular focus on a firm’s relationship with its FINRA members. Topics … Continue Reading
In a well-written recent opinion concerning violation of both a confidentiality/non-compete agreement and a preliminary injunction, a federal judge explained in detail why she was awarding liquidated damages, entering a permanent injunction, and assessing legal fees.
Summary of the Case
Two financial planners, one an individual and the other a corporation, negotiated a merger of their businesses. Before being provided … Continue Reading
The traditional approach taken by the English Courts to restrictive covenants was confirmed in the decision of the Court of Appeal in Prophet plc v Huggett  EWCA Civ 1013. The Court of Appeal overturned a High Court judge’s decision that the words “or similar thereto” should be added to the relevant clause in order for it to make … Continue Reading
A few months ago, we reported on a federal court decision in the Southern District of Alabama declining to enforce a non-compete and non-solicitation agreement against a former employee who executed the agreement before he began his employment. Last week, a panel of the Eleventh Circuit affirmed the District Court’s decision in an unpublished opinion.
As we reported following … Continue Reading
In Seyfarth’s fourth installment of its 2014 Trade Secrets Webinar series, Seyfarth attorneys discussed the significant changes to several laws regarding trade secrets, restrictive covenants, and social media, as well as proposed legislation pending in other jurisdictions.… Continue Reading
In a decision marked not-for-publication, a Minnesota Appeals Court affirmed the trial court’s invalidation of a two-year non-competition agreement signed by a long time employee. He was discharged 11 years after he signed. He then went to work for a competitor of his former employer. The majority reasoned that the non-compete lacked independent consideration since it was not executed by … Continue Reading
Excited about the prospect of a talented new hire and think that her non-compete doesn’t affect you? Think again. Under Virginia law, a future employer, who is aware of a prospective employee’s non-compete agreement, risks legal liability for tortious interference of contract and, through that, business conspiracy.
In DePuy Synthes Sales, Inc. v. Jones, 2014 WL 1165852 (E.D. Va. Mar. … Continue Reading
Don’t want to sign that new non-compete agreement that your employer just rolled out? Unempoyment compensation may be an option at least according to one new court decision.
An employee does not necessarily forfeit unemployment compensation if he or she is discharged, or resigns rather than waiting to be discharged, for declining to sign a mandated restrictive covenant. Darr v. … Continue Reading