When Is a Trade Secret Not a Trade Secret? When You Don’t Protect It Like One

Non-compete, confidentiality clauses, nondisclosure, employment agreements, Illinois

In Abrasic 90 Inc. v. Weldcote Metals, Inc., 364 F. Supp.3d 888 (N.D. Ill., 2019), U.S. District Court Judge Tharp of the Northern District of Illinois provides a virtual checklist of the steps a company should consider if it wants its important information to be treated as a trade secret. Alternatively, the decision serves as a valuable reminder of what happens if an employer fails to implement appropriate protective measures. Continue reading

The Devil Is in The Details: Second Circuit Reverses Injunction For Lack of Specificity Required by Rule 65

rules-1752415_1280

A recent decision by the U.S. Court of Appeals for the Second Circuit serves as a timely reminder of the importance of complying with Rule 65’s requirement that injunctions describe the prohibited conduct “in reasonable detail.” Fail to comply and you could find yourself with an invalid injunction. Continue reading

Inevitable Disclosure Is No Substitute For Post-Employment Non-Competition Provision

Non-Compete, Nondisclosure, Trade Secrets, Illinois, Inevitable Disclosure

In reversing the trial court’s grant of a preliminary injunction, the Illinois Appellate Court in Archer Daniels Midland Company v. Sinele et al., (2019 IL App 4th 180714, decided February 1, 2019) reminds employers that the doctrine of inevitable discovery is not a foolproof substitute for enforceable post-employment restrictions on competition.  Continue reading

Forfeiture of $2.6MM in Comp for Failing to Clean Out Home Office May Not Pass Muster

Non-Compete, Nondisclosure, Employment Agreements, Minnesota, Restrictive Covenants

In the recent case of Capistrant v. Lifetouch National School Studios, Inc., No. A16-1829, 2018 BL 263415 (July 25, 2018), the Minnesota Supreme Court had occasion to consider whether a 25+ year employee’s failure to return all of his employer’s property immediately upon termination justified the forfeiture of $2.6MM in compensation. The case reminds us once again that employment agreements will not always be enforced as drafted. Continue reading

Don’t Let Your Nondisclosure Provisions Convert Your Employment Agreement Into An Unenforceable Non-Compete

Nondisclosure, Non-Compete, Fay v. Total Quality Logistics, DTSA

In Fay v. Total Quality Logistics, LLC, the South Carolina Appellate Court determined that the confidentiality provision in an employment agreement was so broad that it needed to be reviewed under the standards applicable to non-competition agreements and, because it lacked a durational provision, held it unenforceable.   Continue reading