It took almost a year, but the breach of a non-compete agreement/misappropriation of trade secrets case against our client, a former sales executive, is finally over.
To be sure, there were a few heavy battles along the way, including the following:
- A court-ordered hearing (including live, in-person testimony) in response to the plaintiff/former employer's application for a TRO, seeking an order barring my client from operating his new (allegedly competing) business;
- A flurry of motion practice brought by plaintiff against my client for contempt of court based upon their (mistaken) belief that my client had been "less than forthcoming" with the Court in his sworn testimony; and,
- Motions for an open commission directing third parties that were located out of state to comply with our subpoenas (for the uninitiated, if you are based in New York, you can't simply subpoena a person or company that isn't based in New York - you need special permission from both the New York court, as well as a second one in the jurisdiction of the subpoenaed person/entity).
In the end, my client agreed to pay the plaintiff his anticipated cost of defense to see the case through the end of trial. Here's why this was a really good deal for my client:
- Though threatened with the shut-down of his new business by a plaintiff with much deeper pockets, he got to keep his new business going;
- He avoided having to fly back in from overseas (where he lives) for the purposes of trial;
- He avoided the uncertainty of what would/could happen at trial, including the possibility of an adverse verdict and/or an appeal (which would certainly add to the expense); and,
- The plaintiff was claiming millions of dollars in damages, claiming that my client misappropriated their proprietary software and unfairly competed with them. Our client's full settlement amount was a small fraction of that amount - a confidential sum in the mid-five figures.
