|Jottings By An Employer's Lawyer|
Sunday, November 18, 2007
The Unloyal Employee - May End Up Owing a Tidy Sum
Interestingly even though the employees in question had non-competes, it was the broad Texas law on breach of a fiduciary obligation that was the basis for the recovery. The trial court had eliminated damages for misappropriation of trade secrets finding it duplicative of the breach of fiduciary claim.
One of the "bad acts" was negotiating and signing a 4 year lease and then using the lease as "leverage" against their employer in attempting to force a sale of the business to them. An additional "bad act" was that they had been negotiating with several buyers to sell the business that they were hoping to acquire.
Navigant Consulting is a good overview of the law in an area where I think we are going to see more litigation.
Labels: competing employees