An architecture and construction company, Tesla Wall Systems LLC, has been awarded $14.5 million in damages in a claim against its former president. Among other things, the claim alleged breach of contract based on the trade secret/restrictive covenant clause in the employment contract. The contract contained post-employment restrictions barring the ex-president from interference with company business relationships for six months, and from soliciting employees for nine months.
Tesla Wall alleged that the breach of confidentiality began as early as September 2012 when the defendant bought three laptops. The company maintained that he did not ask to be reimbursed for his purchase because he was using them to steal trade secrets. In the complaint, Tesla employees said that after his departure, the defendant continued to pursue Tesla projects and customers with his new company. The list of proprietary information that he allegedly took with him included everything from software and technology, to technical data and research, engineering designs, internal bids and proposals, as well as customer lists and internal pricing information.
Many claims involving restrictive covenants never make it to trial as the parties often opt for a settlement. However in this case, the employer decided to pursue the claim to its conclusion. After sitting through more than ten days of trial, a federal jury in the Southern District of New York returned a verdict in favor of Tesla Wall LLC.
Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Represent Clients in Breach of Contract Matters, Restrictive Covenant Actions and Trade Secret Claims
The Philadelphia business lawyers at Sidkoff, Pincus & Green P.C. have experience in contract law, restrictive covenants and trade secrets. Please call us at 215-574-0600 or contact us online. Our offices are in Philadelphia and we serve clients nationwide.