Trading Secrets : Trade Secrets Lawyers & Attorneys : Seyfarth Shaw Law Firm : Computer Fraud, Confidentiality Agreements, Corporate Espionage

Earlier this month, Starbucks Corp. filed a complaint in the U.S. District Court for the Western District of Washington to seek enforcement of a noncompetition agreement it entered into with former Division Senior Vice President Paul Twohig.

According to Starbucks, Twohig purportedly had accepted a position with Dunkin’ Donuts as its Brand Operations Officer, which would have been in violation of the non-competition agreement he entered into with Starbucks.

On Friday, October 23, 2009, Starbucks announced that it had resolved its dispute with Twohig. The settlement agreement included promises by Twohig that he would complete initial training at Dunkin’ Donuts, but would not otherwise work there until January 15, 2010, approximately ten months after Twohig left Starbucks’ employ.

In addition, Starbucks is to receive $500,000 as part of the settlement. Starbucks has not reported who will be responsible for this payment.

The case was Starbucks Corp. v. Paul Twohig, case number 09-01404, U.S. District Court for the Western District of Washington.

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Earlier this week, Starbucks Corp. sued a former executive in the U.S. District Court for the Western District of Washington, seeking enforcement of a noncompetition agreement. (Starbucks Corp. v. Paul Twohig, Civil Action No. 09-01404 (W.D. Wash.))

Former Division Senior Vice President Paul Twohig left Starbucks in March 2009, and, according to news reports, purportedly accepted a position with Dunkin' Donuts as its Brand Operations Officer.  According to the complaint, Twohig executed a noncompetition agreement in 2004, promising that he would not participate in the management, operation, or control of any direct competitors for 18 months after leaving Starbucks.

Starbucks alleges that, as Division Senior Vice President, Twohig controlled all aspects of Starbucks' retail operations in the Southeast, including developing the brand and creating business plans. And, Starbucks contends that after leaving the company in March, Twohig contacted Starbucks in August to ask whether it would release him from his noncompetition agreement, so that he could accept a position with Dunkin' Donuts. Starbucks declined to release Twohig from the contract.

Starbucks is seeking preliminary and permanent injunctive relief, damages and fees.

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