When a company hires a direct competitor’s employees – whether it is an entire division or one executive or key employee – it is often followed by allegations of a breach of fiduciary duty, unfair competition, and/or trade secret misappropriation. Demands for injunctive relief that prevent or restrict a company from doing business are common in these cases.
Whether the company is a startup or has offices around the globe, the stakes are often high for all involved and emotions can run deep because distrust and anger are involved. The ability of workers to develop their careers or better their livelihoods, the ability for businesses to freely compete for clients, and the rights of companies to protect their methods, processes, customer information and reputation, are often in tension. Whether in defense or prosecution, success depends on knowledgeable and aggressive counsel.
The Trade Secret Litigation Employee Mobility team at Weintraub Tobin has ample experience in defending and prosecuting these types of claims. Our attorneys successfully defend and prosecute trade secret misappropriation, unfair competition, and “corporate raiding” cases involving millions of dollars in claimed damages. In these cases, our attorneys regularly obtain and defend against the issuance of injunctive relief.
Our team has walked this road before and knows the terrain.
Notable Cases
North American Title V. Liberty Title, et al. – Obtained defense verdict for a title company founder/executive after a 12-week jury trial. The plaintiff claimed that the hiring of dozens of its employees had been caused by breaches of fiduciary duty by its officers and executives and resulted in a massive misappropriation of its trade secrets. The plaintiff sought damages in excess of $20,000,000.
Hanger Prosthetics & Orthotics v. Capstone – Assisted with the successful defense of a start-up orthopedic company against trade secret misappropriation and unfair competition claims brought by a large national company.
Fafco v. Energy Laboratories, et al. – Obtained injunction in Federal District Court against a former employee and his new employer, enjoining and prohibiting the use of his trade secret information.
Comerica Bank v.Commercial Capital Bank, et al. – Defended 21 former employees accused of misappropriation of trade secrets, conspiracy, and unfair competition. Promptly obtained injunctive relief under counterclaims, and obtained supersedeas relief from the appellate court modifying the injunctive relief ordered by the trial court.
Gateway C.C. v. O’Leary – Obtained a preliminary injunction on behalf of a charter school against four former employees who were attempting to start up a competing charter school. Later obtained a jury verdict against the competing charter school for compensatory and punitive damages.
IonWays, LLC v. Phinneys – Assisted with obtaining a preliminary injunction in Nevada against former distributors of a multi-level marketing company after a two-day “mini-trial.”
In addition to the above cases, Weintraub Tobin has experience in the following trade secret cases:
Served as lead counsel for a design company that was sued for misappropriation of trade secrets and confidential information. Plaintiff requested more than $2 million in damages. After a two-week trial, the jury awarded just $47,000 in damages.
Obtained dismissal of a lawsuit against former employee of the plaintiff’s company in a trade secret misappropriation and unfair competition action involving Fortune 100 companies. Dismissal was secured based on favorable evidentiary rulings during a two-month jury trial.
Served as lead counsel for the world’s largest food manufacturing company which was sued in state court in Texas for trade secret misappropriation, interference with contract, and related claims. Plaintiff requested more than $330 million in damages. After more than two weeks of trial, the jury awarded approximately $1 million, well below the pre-trial settlement demands.
Counseling
Our attorneys also have the experience and know-how to counsel companies in hiring key employees of competitors, handling the departures of key employees, and developing policies and practices.
About the ProgramTrade secret litigation and employee mobility cases are the hottest areas of intellectual property and employment litigation. Employees are getting laid off in record numbers, more and more senior level executives and employees are leaving one company to start or join a direct competitor. This program will provide…
Don’t Wait for the Stork To Teach You What It All Means Summary of ProgramJoin the Employment Law Group of Weintraub Tobin for an informative and up-to-date discussion about the rights and obligations of pregnantemployees. Program Highlights Pregnancy Disability Leave (PDL) What is it? Which employers are covered? When is…
Employers are now faced with a variety of issues stemming from employees’ social media participation, such as: unproductive use of time during workers hours, making statements that may violate the company’s harassment/discrimination policies, and sharing confidential/proprietary information. Employers are often left asking: Just how far into the Internet do my…
Program Description Weintraub attorney Charles L. Post will speak on the following topics: “Is Your Employee Handbook Up to Date? Essential Components and Sample Policies for Today’s Workplace”Wage and Benefit Issues Stay up to date on the latest legislative changes and court decisions impacting your human resource practices! This essential…
Labor & Employment attorney Beth West will speak at this SACTO workshop, which will equip you with the resources, tools, and knowledge you need to get your business ready for a healthier, more productive, and compliant workplace. Learn more about the recent changes and new timeline for Healthcare Reform as…
Summary of ProgramThe ever increasing number of claims filed with the Department of Labor and California Labor Commissioner for unpaid overtime, and the increasing number of wage and hour class action lawsuits, highlight the importance of correctly classifying employees as exempt or non-exempt. This seminar is designed to help employers…
Summary of ProgramUnfortunately, both single-plaintiff and class-action wage and hour lawsuits continue to plague California employers. Often employers are sued because of technical violations that occur simply because the employer is unaware of its legal obligations. Come join the Labor and Employment Group at Weintraub Tobin as they discuss the…
Download: Exec Series – August 2013.pdf The Sacramento Asian Pacific Chamber of Commerce and Weintraub Tobin will host “Executive Series IV: 12 Most Common Mistakes Small Employers Make” on Wednesday, August 7th. Labor and employment attorney Duyen T. Nguyen will explain how you can prevent against these common business mistakes:…
Download: New Final.pdf Leavitt Group and Weintraub Tobin will host a “Summer Seminar Series for Restaurants” where we will examine the issues facing employers in the restaurant industry, health care reform and group captive alternatives. Whether it’s employer mandates, wage and hour class litigation or administrative actions, restaurant management has…
Download: labor law hiring and firing and conflict management 6-21-13__Final.pdf The Yuba Sutter Colusa Employer Advisory Council in partnership with the Employment Development Department will present the seminar, “Labor Law, Hiring and Firing, and Conflict Management,” on Friday, June 21st from 8 a.m. to noon at Peachtree Golf & Country…
Download: Flyer – OSHA Compliance. A Healthy and Safe Work Environment (1643744).PDF Summary of Program Federal and state OSHA laws protect California workers from unsafe working conditions. However, the federal and state statutes and regulations are complex and can be difficult to understand. This shortwebinar is designed to remove some…
Weintraub’s client, the exclusive distributor of a product, discovered that two of its two former employees who had been involved in selling and bidding on jobs to install the product, had, prior to their departure, taken company trade secret information including customer lists and strategic information relating to the client’s…
In a June 8, 2021 article in the Sacramento Business Journal, Sonya Sorich writes that Mattone Ristorante has been sued by Biba Restaurant, Inc. for creating “a false designation of association between their new venture and Biba Restaurant.” The complaint states that “Defendants have also stolen Biba Restaurant’s trade secrets,…
SACRAMENTO, California – Weintraub Tobin congratulates its 14 attorneys who have been included in Sacramento Business Journal’s Best of the Bar 2019. Attorneys selected to the 2019 Best of the Bar list include Gary L. Bradus, Kay U. Brooks ,Dale C. Campbell, Christopher Chediak, Janet Z. Chediak, Jim Clarke,Edward J.…
SACRAMENTO, California – July 19, 2018 – Weintraub Tobin Law Corporation congratulates its 24 attorneys who have been included in Sacramento Magazine’s 2018 Top Lawyer List. David Adams | Business/Corporate, Securities & Corporate FinanceBrendan Begley | AppellateGary L. Bradus | Banking & Financial Service, Business/Corporate, Mergers & Acquisitions, Securities &…
SACRAMENTO, California – July 26, 2017 – Weintraub Tobin Law Corporation congratulates its 21 attorneys who have been included in Sacramento Magazine’s 2017 Top Lawyer List. Brendan Begley | AppellateGary L. Bradus | Banking & Financial Service, Business/CorporateKay U. Brooks | Estate Planning & ProbateDale C. Campbell | Business Litigation,…
So what is a trade secret? Generally, a trade secret is information that the owner has taken reasonable measures to keep secret, derives independent economic value from not being generally known, and cannot be readily ascertainable by proper means, such as reverse engineering or independent development. Many businesses rely on…
Senate and House of Representatives Pass the Defend Trade Secrets Act (DTSA). First federal trade secret bill awaiting presidential signature. More details can be found at the following Forbes article: “The New Defend Trade Secrets Act is the Biggest IP Development in Years,” dated April 28, 2016.
Jo Dale Carothers Joins as Shareholder, Strengthening Firm’s IP Capabilities and Extending Reach into San Diego SAN DIEGO (January 14, 2015) – Weintraub Tobin, one of California’s leading full service law firms, announced that Jo Dale Carothers has joined the firm as a shareholder and will head the firm’s Intellectual Property…
Download: WTWB Merger Press Release FINAL.pdf Weintraub Tobin Chediak Coleman Grodin Law Corporation and Waldron & Bragg, a professional corporation, have jointly announced the merger of their business law and litigation firms. The combined firm will be named Weintraub Tobin Chediak Coleman Grodin and have offices in Sacramento, Calif., San…
For a third year in a row, Weintraub Tobin is working to raise funds for cardiovascular diseases and stroke by partaking in the American Heart Association Heart Walk on Saturday, September 21 at William Land Park. Our attorneys and staff work hard during the summer months to gear up for…
One of the most common forms of relief sought in trade secret litigation is an injunction preventing the defendants from using or disclosing the plaintiff’s trade secret information. Although temporary restraining orders and/or preliminary injunctions may be obtained that are in place during the lawsuit, a permanent injunction is entered…
For years, California courts have recognized the right of employers to use non-solicitation provisions in employment agreements to prevent employees from “soliciting” their coworkers to join them at a new employer. For instance, in 1985, a California appellate court in Loral Corp v. Moyes, 174 Cal.App.3d 268 (1985), held that…
As everyone knows, in June, the United Kingdom passed the BREXIT referendum (driven by British voters), voting to exit the European Union. What affect does BREXIT have on intellectual property rights in the United Kingdom and the European Union? There is a two-year process of negotiation between the UK and…
Crazy Horse was a legendary Native American chief of the Oglala Lakota tribe who lived during the second half of the 1800s. Unfortunately today, his name may be more familiar as a brand for various products, such as motorcycle gear, whiskey, rifles and strip clubs. In Russell Road Food &…
So what is a trade secret? Generally, a trade secret is information that the owner has taken reasonable measures to keep secret, derives independent economic value from not being generally known, and cannot be readily ascertainable by proper means, such as reverse engineering or independent development. Many businesses rely on…
Senate and House of Representatives Pass the Defend Trade Secrets Act (DTSA). First federal trade secret bill awaiting presidential signature. More details can be found at the following Forbes article: “The New Defend Trade Secrets Act is the Biggest IP Development in Years,” dated April 28, 2016.
When companies sue their former employees for theft they often claim that the former employee’s new employer has conspired with the former employee to misappropriate trade secrets, or that that new employer has aided and abetted the former employee’s breach of duty he/she owed to his/her former employer. Like Woodward…
In business, there are numerous opportunities for pitfalls, mistakes and errors and they come up in all different legal areas – from basic formation issues to labor and employment to intellectual property. Mistakes and missteps involving intellectual property can be particularly problematic because IP is a company asset; it constitutes…
California’s prohibition on non-competition agreements is less than absolute. For example, non-compete agreements may be enforced against partners or sellers of businesses. Additionally, in SingerLewak LLP v. Andrew Gantman (2015) 241 Cal.App.4th 610, a California Appellate Court affirmed an arbitration award that would be considered by most to be a…
Companies and employers around the country seek to protect their intellectual property by, among other things, using non-compete provisions in employment agreements. Generally, these provisions are intended to prevent an employee from soliciting or doing business with a former employer’s customer/clients over a set period of time and/or in regard…
In the bustling craft brew economy brewers are faced with new issues every day. One that recently came to my attention arises when the craft brewery’s brewmaster or head brewer decides to either start his own craft brewery, or go to work for another brewery. While this may not initially…