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

Tag Archives: Delaware

Missouri Federal Court Finds Forfeiture-For-Competition Provision in Stock Option Agreement Enforceable

Posted in Non-Compete Enforceability, Practice & Procedure

A recent Missouri federal court decision highlights the different standards that courts employ in evaluating forfeiture-for-competition provisions contained in stock option plans. 

Summary.  Many courts testing the validity of a contractual forfeiture-for-competition provision use a “reasonableness” standard.  Recently, however, a Missouri district court judge aligned himself with the minority view and held that regardless of whether the provision in an …

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 …

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 …

Delaware Chancery Court Rules That Former Employees Are Not Indispensable Parties in Non-Compete Case

Posted in Non-Compete Enforceability, Practice & Procedure

On July 11, 2012, the Delaware Court of Chancery found that former employees are not indispensable parties for purposes of dismissal pursuant to Chancery Court Rule 19 in an action against their new employer for breach of covenants not to compete, misappropriation of trade secrets, and aiding and abetting a breach of fiduciary duty, based on allegations that the new …

Colorado Federal Court Decision In Non-Compete Dispute Demonstrates Importance Of Drafting Enforceable Forum Selection Provisions In Business Transactions

Posted in Non-Compete Enforceability, Practice & Procedure

By Robert Milligan and Jeffrey Oh

As part of the process of acquiring of a business and retaining key employees of the acquired business, multiple agreements surrounding the parameters and contingencies of the transaction are often drafted, including asset purchase agreements and employment agreements. These agreements sometimes overlap in scope and ensuring that all material aspects of the deal align in …

Delaware Court Enjoins Use of Ex-Employers Trade Secrets

Posted in Trade Secrets

           Delaware Court of Chancery Vice Chancellor J. Travis Laster, faced with an unreasonable non-compete/non-solicitation agreement, indicated that he would have preferred to hold it invalid but said that he had no choice other than to modify its terms because its Maryland choice-of-law provision requires judicial “blue penciling.” He did enjoin the ex-employee from using his ex-employer’s customer list, a trade secret, …