By Peter Steinmeyer
A federal judge in Chicago recently wrestled with two issues that we
frequently blog about: what constitutes misappropriation of confidential
information, and to what extent can a current employee prepare to
compete with his employer without breaching his fiduciary duty?
In Chicagoland Aviation, LLC v. Richard R. Todd, et al.,
flight instructor Richard Todd left his job and started a rival
business. Shortly thereafter, Chicagoland Aviation sued him for, among
other things, breaching his fiduciary duty by allegedly misappropriating
confidential information and starting a competing business while still
employed by Chicagoland Aviation. Chicagoland Aviation eventually
requested a preliminary injunction, which the court denied.
The court began its analysis of Chicagoland Aviation’s breach of
fiduciary duty claim by summarizing the background legal principles:
“[g]enerally, employees have a duty not to improperly compete with their
employer, solicit the employer’s customers, entice co-workers away from
the employer, divert business opportunities, engage in self-dealing,
and/or otherwise misappropriate the employer’s property or funds.”
Regarding the purported theft of confidential information, the court
concluded that the information at issue was either not confidential or
not misappropriated.
Read more: http://www.tradesecretsnoncompetelaw.com
Case: 1:12-cv-01139 Document #: 137 Filed: 11/27/12
MEMORANDUM OPINION AND ORDER
http://www.chicagolandaviation.com
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