Abraham Lincoln once noted that if he had six hours to chop down a tree, he would spend the first four sharpening the axe. For employers, that sort of up-front attention to details is especially important when it comes to non-compete agreements. Otherwise, as a recent Michigan Court of Appeals illustrates, the only thing likely
Common Mistakes that Derail Enforcement of a Noncompete Agreement
Our law firm was recently hired to represent clients – former employees – being sued for allegedly violating a noncompete agreement, trade secret misappropriation, and other business related claims.
As is typical with these sorts of cases, the Plaintiff, the former employer, was seeking injunctive relief in the form of a temporary restraining order (TRO)
Is Your Non-compete Agreement Enforceable? Not Without a “Reasonable Competitive Interest”
“Sticking feathers up your butt, does not make you a chicken.“
Tyler Durden, Fight Club
Under Michigan law, one required element for having an enforceable non-compete agreement is a “reasonable competitive business interest.” But, like the chicken quote, business owners can’t expect to just stick the phrase “reasonable competitive business interest” into an
The Wildcard in Noncompete Litigation – The Judge
One of the most common questions I get asked by both business clients and individuals is whether their non-compete agreement is enforceable. As explained below, a number of points will determine the answer, but none are more important than what essentially amounts to a “wild card” — the judge deciding your case.
Attorney Brett Snider
What Steps Can Your Business Take to Avoid Becoming a Victim of Trade Secret Theft?
Trade secret theft continues to be a major concern (or it should be) for businesses. And the numbers back up this conclusion; In an article by by Will Yakowicz, appearing in Inc., “How to Avoid Becoming a Victim of Trade Secret Theft,” it’s noted that:
Criminal theft of corporate trade secrets is reaching epidemic levels, experts say … the number of trade secret cases in U.S. federal courts doubled between 1988 and 1995, doubled again from 1995 to 2004, and is projected to double again by 2017.
Mr. Yakowicz’s article goes on to provide business owners with great advice on how to reduce trade secret thefts in your business. Having recently wrapped a trade secret misappropriation trial filed in Michigan state court, I can definitely say that the article is worth reading and the recommendations should be meaningfully considered by any business with information worth protecting.
What happens when a trade secret misappropriation lawsuit falls apart.
For background purposes, I represented a company and its executives who were sued for claims involving trade secret misappropriation, breach of a non-compete agreement, and other business related claims. One problem with any sort of lawsuit is that often times the facts get in the way.
This became clear as two days after the trial began, the lawsuit settled on terms very favorable to my clients (Plaintiff had requested over $860,000 at Michigan’s case evaluation procedure, which resulted in the evaluation panel awarding $175,000 against my clients). However, the parties settled the lawsuit for $8,500.00 payable over time.
Continue Reading What Steps Can Your Business Take to Avoid Becoming a Victim of Trade Secret Theft?
Enforcing Noncompete Agreements – What Law Will Apply?
Enforcing noncompete agreements will depend upon state law. What law applies will be critical for determining if a noncompete agreement is enforceable.
Continue Reading Enforcing Noncompete Agreements – What Law Will Apply?
Playbook to Avoid Trade Secret & Noncompete Agreement Violations Involving New Hires
An employer making a job offer to a new employee needs to have in place best practices for avoiding being sued in a noncompete agreement dispute or a trade secret misappropriation claim.
Continue Reading Playbook to Avoid Trade Secret & Noncompete Agreement Violations Involving New Hires
Enforceable Noncompete Agreement Key to $2 Million Judgment Against Former Employee
A recent Michigan trial court decision from the Oakland County Circuit Court illustrates the significance that noncompete agreements can have for employers and individuals who sign such agreements.
Specifically, Crain’s Detroit Business reported that an Oakland County Circuit court entered a judgment in excess of $2 million against Matt Prentice, a former employee and a well-known Metro
Noncompete Agreements – A Hurdle to Employment and Innovation?
Noncompete agreements and other restrictive covenants are customarily found in employment agreements and provided for in the sale of a business.
In the employment context, companies simply do not want a former employee to take its business and set up shop or to go work for a competitor. In connection with the sale of a
Enforcing Noncompete Agreements: How to Avoid Wasting A+ Resources on the C- Employee
Noncompete agreements have become a staple of the employment relationship. These agreements are intended to give employers the ability to protect their business against unreasonable and unfair competition. Such competition usually takes the form of a former employee directly competing against the employer either by starting a similar business or jumping ship for competitor.