News & Analysis as of August 8, 2025

Breach of Contract

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Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a certain industry or locale. The purpose of these agreements is to protect employers or business purchasers from competition stemming from former employees or former owners of a business. less -

Missouri Federal Court Grants Franchisor’s Motion for Preliminary Injunction for Alleged Violation of Noncompete

Lathrop GPM on 7/11/2025

A federal court in Missouri recently granted a franchisor’s motion for a preliminary injunction, finding that the franchisee’s operation of a competing business demonstrated irreparable harm. Three Dog Bakery, LLC v. Crit,...more

Franchisee 101: Dog Days of Operations

Lewitt Hackman on 6/30/2025

A federal court in Missouri granted franchisor’s motion for preliminary injunction against its former franchisee, enjoining the former franchisee from operating a competing business from the former franchised location....more

Two business court rulings offer insights on trade secret pleadings, employment agreements, and credibility

Fox Rothschild LLP on 4/25/2025

Maven Advantage, Inc. and Square One Storm Restoration, LLC are competing roofing businesses. Maven alleged that two employees (Couch and Daniels) stole Maven’s trade secrets (customer lists) and then quit to work for Square...more

Georgia Federal Court Denies TRO and Motion to Dismiss in Trade Secrets Case

Proskauer - Trade Secrets on 4/18/2025

On March 27, 2025, in Stimlabs LLC v. Griffiths, the U.S. District Court for the Northern District of Georgia ordered a former executive, Sarah Griffiths, to face claims related to her alleged theft of Stimlab’s trade secrets...more

Employee pirates can plunder a business. Arrrgh ye ready?

Constangy, Brooks, Smith & Prophete, LLP on 4/8/2025

Piracy is defined as robbery by ship- or boat-borne attackers upon another ship or a coastal area, with a goal of stealing cargo or other valuables. During the Golden Age of Piracy, from the 1680s to the 1720s, infamous...more

Employment Litigation Roundup: April 2024

Seward & Kissel LLP on 5/3/2024

Employer sues former traders for using an allegedly confidential trading strategy but loses bid for emergency injunctive relief. On April 12, Jane Street Group LLC (“Jane Street”) sued two of its former traders and...more

Franchisee 101: Braking The Competing Business

Lewitt Hackman on 5/2/2024

A Massachusetts federal district court enforced a non-compete provision in a franchise agreement to enjoin former franchisees from operating a different branded automotive business at the same location as the former...more

Delaware Supreme Court Upholds Forfeiture-for-Competition Provision in Limited Partnership Agreement

Jackson Lewis P.C. on 2/7/2024

Stemming a tide of Delaware decisions closely scrutinizing and refusing to enforce non-compete agreements, Delaware’s Supreme Court held that forfeiture-for-competition provisions arising out of a Delaware limited partnership...more

Employment Litigation Roundup: November 2023

Seward & Kissel LLP on 12/4/2023

Ex-employee’s golf outing with customer does not violate non-solicit - An auto parts manufacturer in Michigan sought a preliminary injunction against a former sales employee for violating his restrictive covenants,...more

A Cautionary Tale from arrivia Inc. v. Rowley

Holland & Knight LLP on 11/30/2023

Enforceability of releases for unknown claims at the time of settlement is a well-established legal principle, as highlighted in the recent case, arrivia Inc. v. Rowley, No. CV-23-01039-PHX-DLR, 2023 WL 7386384 (D. Ariz. Nov....more

Pennsylvania Federal Court Rules It Has Subject Matter Jurisdiction to Decide Trade Secret Claim but Dismisses as Untimely...

Lathrop GPM on 10/9/2023

A federal court in Pennsylvania granted in part and denied in part a former franchisee’s motion to dismiss a franchisor’s allegation that she misappropriated trade secrets and breached the franchise agreement. JTH Tax, LLC v....more

Franchisee 101: An UnBakeable Non-Compete

Lewitt Hackman on 9/29/2023

A Minnesota federal court denied cookie dough franchisor Cookie Dough Bliss Franchising’s motion for a temporary restraining order and preliminary injunction against a former Minnesota franchisee and its owners....more

Do I Have Standing Under the TCPA? - McGlinchey Commercial Law Bulletin - July 11, 2023

McGlinchey Stafford on 7/12/2023

Standing- Dickson v. Direct Energy, LP, 6th Cir. Case No. 22-3394. In this putative class action, the appellant appealed the district court’s decision to dismiss his Telephone Consumer Protection Act (TCPA) claim for...more

LADR Case Notes (August 2022-October 2022) and FLJ Currents (Winter 2023)

Bradley Arant Boult Cummings LLP on 6/12/2023

A gym franchisor recently secured a preliminary injunction against its former franchisee prohibiting the franchisee from operating an independent gym on the same location and using the franchisor’s trade secrets. Chris...more

Franchisor 101: Court Hits Brakes on Former Franchisees

Lewitt Hackman on 4/28/2023

An Ohio appellate court upheld the state trial court’s decision to grant a permanent injunction against two former franchisees of an auto body shop franchise working for a competitor in violation of the franchise agreement’s...more

Preliminary Injunction, Meet Irreparable Harm

McDermott Will & Schulte on 4/13/2023

The US Court of Appeals for the Fifth Circuit, in a case where an ex-employer sought preliminary injunctive relief based on an alleged breach of non-disclosure and non-compete agreements and alleged misappropriation of...more

Stryking Noncompete Preliminary Injunction

McDermott Will & Schulte on 3/10/2023

The US Court of Appeals for the Sixth Circuit upheld a district court’s grant of a preliminary injunction restricting a former employee from working for conflicting organizations or communicating with a competitor’s counsel....more

Protecting Trade Secrets In States That Disfavor Noncompetes

Foley & Lardner LLP on 12/22/2022

Federal and state laws are becoming increasingly unfriendly to employers' efforts to impose post-employment restrictions on workers via nonsolicit and noncompete agreements. However, even in states that have historically...more

Unintended Consequences of Franchise Rescission Rights

Fox Rothschild LLP on 11/16/2022

The right to rescind (or void) a contract is an extraordinary remedy. However, as franchise lawyers know, certain states provide franchisees a right to rescind a franchise agreement in certain situations, particularly where a...more

Lessons from a Staffing Misappropriation and Non-Compete Trial

Seyfarth Shaw LLP on 11/10/2022

Cases don’t try very often. Doubly so in trade secret/non-compete litigation. So many of these disputes get resolved at the injunctive relief phase of the proceeding that, when one goes the distance, it is almost always worth...more

Florida Still Strongly Favors Employer’s Non-Compete Agreements

Rumberger | Kirk on 4/1/2022

Non-compete and confidentiality clauses have long been a fixture in employment agreements in Florida. However, there has been some dissention as to whether such restrictive covenants continue to apply where an employment...more

Franchise Memorandum - Issue #270

Lathrop GPM on 10/8/2021

Second Circuit Affirms Dismissal of Franchisees’ Minimum Wage and Unjust Enrichment Claims - A divided panel of the Second Circuit Court of Appeals has concluded that claims of improper wage deductions and unjust...more

When is hiring a competitor’s employee ‘racketeering’?

McAfee & Taft on 9/24/2020

When hiring new employees – especially those who are currently employed or who recently have been employed by a competing company or organization – it’s always a best practice to ask them if they are subject to an employment...more

Courts Across the Country Continue to Address Trade Secrets Issues

Seyfarth Shaw LLP on 6/12/2020

The “return to normal” in courts across the country has brought with it a flurry of trade secrets decisions that address some interesting and instructive issues, both procedurally and substantively....more

Texas Jury Rejects Digital Marketing Company’s $50 Million Trade Secret Misappropriation Claim

Orrick - Trade Secrets Group on 7/17/2019

After a weeklong June trial, a Texas federal jury awarded Six Dimensions, Inc. (“Six Dimensions”), a digital marketing firm, $287,000 for its breach-of-contract claim against its former employee but rejected its behemoth $50...more

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