News & Analysis as of

Confidential Information Duty of Loyalty

Winstead PC

Presentation: Issues Involving the Attorney-Client Privilege and Trustees in Texas

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The law of trusts originated in equity to evade the constraints of common law; it was a part of property law in which one person held legal title to assets and another held equitable title. The person holding legal title...more

Mintz - Bankruptcy & Restructuring Viewpoints

Early- and Growth-Stage Companies in Distress: What Directors Need to Know about their Fiduciary Duties

Most high-growth companies find themselves in a race against the clock, trying to use whatever capital they may have to achieve milestones prior to hitting their cash-out date. When markets are tight, as they have been over...more

Proskauer - Minding Your Business

CA Federal Court Awards Biomedical Companies $62M Following Jury Trial Involving Confidentiality-Related Claims

On November 1, 2023, a jury in the U.S. District Court for the Central District of California awarded damages to Skye Orthobiologics, LLC (“Skye”) and Human Regenerative Technologies, LLC (“HRT”) for breach of contract,...more

Stark & Stark

Employee’s Duty of Loyalty to Employer

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While everyone is undoubtedly aware that an employee is not lawfully permitted to steal from his/her employer, the next logical question concerns what specifically are an employee’s legal obligations during their course of...more

Fox Rothschild LLP

Time to Revisit Your Confidentiality Agreement

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As you surely know by now, non-compete and non-solicit agreements, and related provisions in settlement or other types of agreements, will be even more heavily scrutinized in California in 2024. So enough about what you...more

Venable LLP

Fourth Circuit Holds That Government Contractors Can Rely on Fiduciary Duty of Loyalty to Prevent Employees from Direct...

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The U.S. Court of Appeals for the Fourth Circuit has found that employees can breach their duty of loyalty to their employers and tortiously interfere with a business expectancy by competing against their employer for the...more

PilieroMazza PLLC

Disloyal Employees: Disgorgement Offers Employers Some Reprieve

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In many states, employees owe a duty of loyalty to their employer as long as they remain on the employer’s payroll. In other words, employees must generally act in the best interests of their employer—and not solely for their...more

Butler Snow LLP

Court Allows Company to Surreptitiously Monitor Former Employee’s Social Media Account to Support its Trade Secrets Claim

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A federal court of appeals recently found that there was nothing wrong with a company monitoring a departed employee’s Facebook account and using that information to pursue a trade secrets claim against four former employees....more

Littler

Colorado Court of Appeals Confirms the Broad Scope of “Arising Under” Arbitration Agreements and Expands Duty-of-Loyalty Claims

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On September 20, 2018, the Colorado Court of Appeals issued an impressive 41-page decision on the scope of arbitration agreements and the duty of loyalty in Colorado, Digital Landscape Inc. v. Media Kings LLC, 2018 COA 142...more

Fisher Phillips

California Jury Punishes Former Employees for Unfair Play-Only Lawful Competition is Sacrosanct!

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Notwithstanding California's strong public policy in favor of lawful competitive behavior, California employees' duty of loyalty to their current employer reigns supreme. A violation of that duty can lead to costly jury...more

Proskauer - Minding Your Business

No TKO: California Judge Refuses to Disqualify Counsel from Patent Litigation

Last week, a federal judge in California denied the plaintiff’s motions to disqualify the defendant’s counsel, finding that the firm’s former representation of the plaintiff was not sufficiently recent, substantial, or...more

Spilman Thomas & Battle, PLLC

An Argument for the Use of Stock Options with Forfeiture Clauses for Breach of Duty of Loyalty

Introduction Jimmy John’s In 2014, Emily Brunner (“Brunner”) and Caitlin Turowski (“Turowski”) filed a complaint in Illinois against the sandwich company, Jimmy John’s, and its franchise affiliates. The complaint was amended...more

Orrick - Trade Secrets Group

The Duty of Loyalty Awakens

If you’re a Star Wars fan, loyalty probably means waiting ten years for “The Force Awakens.” (Or even longer if you prefer not to count Episodes I-III). For an employee looking to leave her current employer, however, loyalty...more

FordHarrison

Appellate Decision Teaches New Jersey Employees How To Remove Confidential Documents and Trade Secrets from Employers

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Like the hit show "How to Get Away with Murder," the recent New Jersey ruling in Spencer Sav. Bank SLA v. McGrover (App. Div. March 5, 2015), instructs employees looking to remove their employers' confidential documents and...more

Jackson Walker

Dissident Director Who Harms Corporation To Further Personal Objectives Violates Duty Of Loyalty

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I. Director Duty of Loyalty - Directors owe fiduciary duties to a corporation on whose Board of Directors (“Board”) they serve and effectively to all of its stockholders. The fiduciary duty of loyalty dictates that...more

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