A national provider of technical services that require specified training in a discreet industry hired us to pursue a covenant not to compete issue. Our client requires various employees who have access to confidential and trade secret information, along with insider’s knowledge of the client’s operations, business and business relationships (collectively, the “legitimate business interests”), to execute covenants not to compete, which specify permitted activities of the employee during, and for a period of time after, his or her employment with the client.
While still employed, two of our client’s employees formed a competing business in direct violation of their written agreements. Shortly after forming the new business, both employees voluntarily terminated employment with our client and proceeded to unfairly compete in violation of their valid and enforceable covenants not to complete.
Spotting an opportunity to avoid the time and expense of costly litigation for these matters, we built a strategy in support of enforcing each former employee’s agreement. After issuing cease and desist notices to each former employee, we worked with our client and the former employee’s counsel to draft settlement agreements designed to recoup economic damages for our client and require the former employees to comply with their respective agreements. Through diligent negotiation efforts, we were able to settle with both former employees, allowing our client to achieve their business objectives without unfair competition.