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Davis+Gilbert LLP

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Non-Competes, other Restrictive Covenants, Trade Secrets and Raiding

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  • Overview
  • Advertising Disputes and Challenges
  • Commercial Litigation
  • Employment Litigation, Arbitration and Mediation
  • Insolvency and Financial Products Litigation
  • Intellectual Property Litigation
  • Non-Competes, other Restrictive Covenants, Trade Secrets and Raiding
  • Real Estate Litigation and Disputes

The ease with which talent can move from company to company presents a clear threat to the viability of any business whose key people are its principal assets. Our attorneys, steeped in the firm’s long history of serving “people businesses,” represent clients in disputes involving the enforcement of restrictive covenants and the protection of trade secrets. We are adept at representing either side of employee mobility disputes, whether seeking to enforce or strike these covenants. Our lawyers are widely known as thought leaders in this area, including several who have written leading treatises and participated in industry committees that shape evolving executive employment contract provisions.

Day-to-Day Dispute Avoidance

Our clients turn to us for pre-litigation counsel in connection with restrictive covenant disputes. As recognized authorities in this area, we are known for our ability to swiftly assess the risk associated with seeking to enforce or challenge restrictive covenants and develop creative approaches to resolving these disputes in light of each client’s unique needs.

Taking Charge in Mobility Cases

Disputes over employee mobility tend to be front-loaded and are generally won or lost in their fast-moving early stages. They usually involve one or more individuals moving from one company to a competing firm, or soliciting customers or employees of a former employer, with the former employer seeking an injunction preventing the move or the solicitation. The court’s decision to grant or deny that injunction informs the rest of the case. Accordingly, our clients count on our ability to file or oppose the injunction application and then resolve the dispute through settlement or, when necessary, litigation.

Protecting Trade Secrets

When key people walk out the door, they often take key secrets or other confidential or proprietary information with them. Our lawyers handle a large volume of these cases, and through our extensive experience, we are able to determine whether the information at issue is protectable and, if it is, develop a strategy for promptly securing that information and pursuing monetary and nonmonetary remedies.

Countering Personnel Raids

In the midst of or after so-called group lift-outs, where a company can be crippled by a raid on its workforce, our litigators go into action, piecing together how it happened and how to mitigate any damage. Working from each ex-employee’s contract, we create strategies to enforce post-employment restrictions, remediate the company’s loss and win compensation.

Representative Experience

  • Represented a prominent bank against a group of employees who resigned en masse to join a major competitor. Established that the former employees not only had resigned with confidential information in their possession, but also had conspired to solicit clients and transactions being handled by their former employer. We immediately designed a forensic review protocol that uncovered all company confidential information and ensured that information’s deletion from their devices. We also obtained standstill agreement, preventing the competitor from soliciting additional bank employees for several months.
  • Established at trial that an inventor's financial stock selection model was not unlawfully derivative of a model developed by his former employer and further established that our client's model was itself a trade secret, awarding him substantial monetary damages for his new business. The case made law both in the trade secret and damages area in New York and is frequently cited as leading precedent.

  • Represented a global healthcare technology company in an AAA arbitration trial regarding a covenant not to compete in a business partner agreement with another software company. Defeated the plaintiff company’s attempt to obtain an injunction that would have forced our client to shut down a component of its software, and defeated a motion to vacate in the Southern District of New York.

  • Won a temporary restraining order for a major transportation company to enforce a restrictive covenant against key employees who formed a competing transportation company. Negotiated standstill agreements in which the defectors agreed not to solicit our client’s customers or employees for 15 months after the TRO.

  • Defended a former computer programmer against a restrictive covenant lawsuit and arbitration brought by a hedge fund. Defeated the fund's application for a temporary restraining order and preliminary injunction preventing our client from starting a competing company and defeated its application to extend the life of the restrictive covenant. Then secured a favorable settlement, permitting our client to operate a competing company.

  • Represented a former executive of a global modeling agency against allegations of post-employment restrictions and conspiracy. Secured award of legal fees from a former employer in a state court lawsuit and favorable outcome in a subsequent arbitration for failure to pay wages.

Key Contacts

  • Attorney Neal Klausner

    Neal H. Klausner

    Partner/Co-Chair

    Area Of Focus

    • Litigation + Dispute Resolution
    212 468 4992
    nklausner@dglaw.com
  • Attorney Gregg Gilman

    Gregg A. Gilman

    Partner/Co-Chair

    Area Of Focus

    • Labor + Employment
    212 468 4840
    ggilman@dglaw.com
  • Media item displaying Michael C. Lasky

    Michael C. Lasky

    Partner/Co-Chair

    Area Of Focus

    • Litigation + Dispute Resolution
    • Public Relations
    212 468 4849
    mlasky@dglaw.com
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Meet The Team

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  • Overview
  • Advertising Disputes and Challenges
  • Commercial Litigation
  • Employment Litigation, Arbitration and Mediation
  • Insolvency and Financial Products Litigation
  • Intellectual Property Litigation
  • Non-Competes, other Restrictive Covenants, Trade Secrets and Raiding
  • Real Estate Litigation and Disputes

Insights + Events

  • Alert FTC Rule to Ban Non-Competes Draws Swift Challenge

    May 6, 2024

  • Alert California Pushes the Boundaries of Its Ability To Limit Employer Use of Restrictive Covenants Agreements

    December 20, 2023

  • View More

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