Malitz Victory: Protecting Business Clients and Trade Secrets from the Departed Employee

Malitz Victory: Protecting Business Clients and Trade Secrets from the Departed Employee

Partner Steven N. Malitz successfully represented a business in litigation where a terminated employee began soliciting and taking customers in violation of his employment agreement.

The company hired a key employee to service its largest customers. The employee had access to the company’s confidential information, including its customer list, pricing structure and customer requirements. The employee signed an employment agreement promising not to solicit company customers or compete.

Years later, the company terminated the employee due to his disparagement of the company and improper solicitation of the company’s customers. After termination, the employee began calling on and diverting company customers to his new business in violation of his employment agreement. Mr. Malitz filed for an emergency injunction to prevent the employee from stealing the customers and destroying the business.

In the article, Mr. Malitz analyzes the case and its successful result, and provides valuable takeaways, including:

  • What should a business do to prevent a terminated employee from courting and diverting customers
  • What should a business do if a terminated employee begins taking customers and there is no employment agreement
  • How can a business avoid such litigation