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The Virginia Supreme Court has complicated the valuation of lost goodwill damages in trade secrets matters in its June 7, 2012 decision in 21st Century Systems, Inc. v. Perot Systems Government Services, Inc., No. 110114.
The matter arose from the departure of several employees from Perot Systems Government Services, Inc. (“Perot”), who subsequently joined a competitor company. Perot filed suit
A collaboration between Beacon Wireless Solutions and Garmin International, to integrate Beacon’s Global Positioning System fleet management vehicle tracking program into Garmin’s personal navigation devices, went awry. Allegedly without Beacon’s knowledge or consent, in order to boost Garmin’s sales, Garmin allegedly published to Beacon’s competitors Beacon’s confidential integration application specifications. Beacon sued, alleging trade secret misappropriation, breach of contract, and unjust enrichment. A few days ago
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In its latest opinion dealing with trade secret issues, the Virginia Supreme Court ruled that the Virginia Uniform Trade Secrets Act, Va. Code §§ 59.1-336 through 343 ("VUTSA") protects trade secrets even if they are used by an entity that is not demonstrably "in competition with" the plaintiff. Collelo v. Geographic Services, Inc., No. 101411, 101421. The
Although Virginia is already generally hostile to non-competition agreements, enforcing only those that are very limited in function, geographic scope, and duration, a bill has been proposed in the 2012 session of the Virginia General Assembly that would severely restrict the enforceability of non-compete agreements. House Bill 1187 proposes to add to the Code of Virginia a
Continue Reading Virginia Bill Proposes to Ban Most Non-Competes
As previously reported on this blog, the Virginia Supreme Court recently issued an important new non-compete decision which impacts the enforceability of non-compete agreements in Virginia and serves as a reminder that employers may want to review their agreements with employees and update them as appropriate. Here is a Seyfarth One Minute Memo on this important new case.Continue Reading Virginia Employers Should Update Their Non-Compete Agreements In Light of New Virginia Supreme Court Ruling
By Marcus Mintz
Earlier this month, the Virginia Supreme Court issued an opinion in which it clarified the burdens an employer must meet to enforce a non-compete against a former employee. Specifically, that the employer must demonstrate that the non-compete is no broader than necessary to protect the employer’s “legitimate business interests” and does not “unduly burden” the ex-employee’s right to