preliminary injunction

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In Direct Biologics L.L.C. v. McQueen, et al., the U.S. Court of Appeals for the Fifth Circuit vacated a lower court’s dismissal of a trade secret and restrictive covenants suit, but nonetheless stressed the need for movants seeking a preliminary injunction in trade secrets cases to provide specific evidence of the irreparable harm caused by both actual and potential…

Continue Reading Fifth Circuit Spares Trade Secrets Suit, But Clarifies That Specific Evidence of Irreparable Harm Must Support Request for Preliminary Injunction

In a recent Texas federal court ruling, a competitor closely aligned with, and seemingly assisted by, a signatory of a non-compete covenant narrowly avoided a preliminary injunction because the assistance was not shown to have been substantial.

Summary of the case.  In connection with the purchase and sale of a partnership’s assets, a partner of the seller signed a covenant…
Continue Reading Competitor Avoids Injunction Because Competition Was Not Significantly Aided And Abetted By A Signatory To Non-Compete

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 Liquidated Damages, A Permanent Injunction, and Attorneys’ Fees Awarded For Violating Non-Disclosure/Non-Compete Agreement And Preliminary Injunction

An employee entered into non-compete and confidentiality agreements with his employer.  Following his resignation from that company, he went to work for a competitor.  His job functions and territory with both employers were similar.  In a suit for violation of the non-compete and confidentiality agreements, a Texas federal court held recently that — absent an injunction — disclosure to his …
Continue Reading Preliminary Injunction Entered After Texas Federal Court Concludes That Ex-Employee “Inevitably” Will Disclose His Former Employer’s Trade Secrets

The Eleventh Circuit recently dismissed an appeal of a preliminary injunction order on the grounds that the appeal was moot because the injunction had expired.

Summary of the case.  Leedom Management, a credit card processing company serving automobile dealers, sued a former employee and charged her with violating covenants not to (a) compete with Leedom, (b) solicit its clients, and …
Continue Reading Federal Appellate Court Lacks Jurisdiction To Hear Appeal of Expired Non-Compete Preliminary Injunction

A federal district court in Nebraska recently issued a significant preliminary injunction preventing trade secret misappropriation and unlawful competition in a contentious dispute between two freight companies.  West Plains, L.L.C. v. Retzlaff Grain Co., Case No. 8:13CV47 (D. Neb., Feb. 26, 2013).

A group of freight forwarders employed by CT Freight allegedly resigned en masse and went to work…
Continue Reading Preliminary Injunction Issued By Nebraska Federal District Court To Level The Playing Field in Trade Secrets Dispute

By Jessica Mendelson and Grace Chuchla

Employers in the Second Circuit are thankful for a recent non-compete summary order in which the Court found that an employee’s challenge of his non-compete agreement by way of a preliminary injunction motion failed because he failed to show irreparable injury.

Specifically, the Court found that an employee’s potential loss of income does not…
Continue Reading Employers Thankful For New Second Circuit Non-Compete Decision

A private medical transport service was recently unsuccessful in persuading the U.S. District Court for the Northern Mariana Islands to enter a preliminary injunction prohibiting two ex-employees from competing with and soliciting customers of their former employer. The judge cited Section 188 of the Restatement of Contracts (Second) as authority for denying injunctive relief where the potential harm to the…
Continue Reading Paramedics Defeat Noncompete and Customer Nonsolicit Preliminary Injunction on Grounds of Potential Harm to Public and Paramedics

A reporter for a business publication somehow obtained information contained in a privately held company’s confidential interim financial statements. As the reporter was about to disseminate that information in an email alert to the publication’s subscribers, the company sued, described the financials as trade secrets belonging to the company, and obtained from a Louisiana state court judge a TRO enjoining…
Continue Reading “Prior Restraint” Doctrine May Preclude Enjoining A Newspaper From Publishing Misappropriated Trade Secrets

On March 21, 2012, in the case of Pyro Spectaculars, Inc. et al. v. Souza, Case No. 12-CV-00299-GGH, Magistrate Judge Gregory G. Hollows of the USDC for the Eastern District of California (Sacramento Division), issued an order preliminarily enjoining a former Account Executive for a pyrotechnics company from soliciting the customers of his former employer.  There are several notable…

Continue Reading Fireworks Fly, California District Court Enjoins Former Pyrotechnics Company Employee From Soliciting Former Employer’s Customers