Supervalu Sues Former Executive for Breach of Non-Compete
Posted on Jan 01, 2016
The former president of Supervalu Inc.’s independent business division, Leon Bergmann, has been sued by the company for breach of his non-compete agreement. The company aims to prevent the former executive from sharing its secrets now that he has gone to work for a competitor.
Bergmann served in his role with Supervalu for approximately 15 months. He led the company’s food and service sales to roughly 2,200 independent grocers throughout the country. In October of 2012, Bergmann issued his resignation to Supervalu’s CEO, Wayne Sales. In the written resignation, Bergmann stated that he had lost confidence in the company’s turnaround efforts.
In early December, it came to light that Bergmann had accepted a new position as senior vice president of sales at Unified Grocers Inc. That company is Supervalu’s largest competitor in the western United States. As a result, Supervalu filed a lawsuit against Bergmann, seeking an order to bar him from working for Unified Grocers. It also sought to bar him from violating his confidentiality agreement and his non-compete agreement. The term of the non-compete agreement is 12 months. Supervalu alleges that Bergmann’s new role will put him in a position to take advantage of the extensive knowledge he gained pertaining to Supervalu’s pricing, strategy, and customer information.
In November, however, Unified Grocers filed a separate lawsuit against Supervalu in an attempt to invalidate the non-compete. Of note, Unified Grocers has hired other former Supervalu executives in the recent past.
Contact a New York non-compete attorney today at (888) 497-3410 for more information about non-compete agreements and other business litigation matters.