Trade Secrets and Unfair Competition

Success Stories

Protecting Client’s Business from Former Employee

On behalf of a California-based, international wealth-management firm—whose client list includes several high-net-worth individuals—we quickly obtained a temporary restraining order (TRO) to stop one of its Arizona-based former employees from taking an entire segment of our client’s business to his new employer. The case was ultimately resolved favorably for our client, a few months after the court entered the TRO.

Defending Our Client from Restrictive Covenant Lawsuit between Employee and Former Employer

When our client, a provider of medical-claim and quality-care software and services, hired a new employee, she filed a lawsuit to have the restrictive covenant with the former employer declared unenforceable. The former employer subsequently filed claims against both the employee and our client. We successfully argued that our client did not tortiously interfere with any agreement between the employee and her former employer, and our client was dismissed from the lawsuit.

Obtaining TRO to Protect Business Information from Competitors

In a significant case involving an attempted large-scale raid on our client, a leader in the title insurance industry, we obtained a Temporary Restraining Order to prevent a former branch manager from taking copies of customer files and other confidential business information—along with nearly all of the employees of that particular branch office—to a competitor. The court’s order required our client’s former employees and their new employer to return all of the items that had been taken from our client. In addition, the restraining order not only prevented the use of those files and other confidential information, but prevented the former employees and our client’s competitor from contacting or soliciting business from our client’s customers.

Helping Clients Negotiate Claims

A manufacturing representative company sued its former vice president and two salesmen (and the companies they formed after leaving its employment) for breach of fiduciary duty, tortious interference with contract and business relationships, and related claims and asserted damages of several million dollars. Quarles & Brady represented the salesmen and their companies who brought a counter-claim for tortious interference with contract and business relationships. The manufacturing representative refused to acknowledge the counter-claim as a viable claim and believed that it could defeat the counter-claim on summary judgment and then convince a jury to award it damages. Instead, Quarles & Brady's clients prevailed on the motion for summary judgment against their counter-claim and utilized fact and expert evidence to diminish the claimed damages considerably. Through those maneuvers and other factors, the parties reached a resolution one month before trial. The outcome represented a positive result for Quarles & Brady's clients because they negotiated a global release of all claims and avoided the uncertainty of the jury trial.