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Temporary Restraining Order Precludes Loss of Vice President to Major Competitor

Barnes & Barnes, P.C., successfully secured a Temporary Restraining Order precluding a Client’s former Vice President of Global Business Development from starting work as President of a competitor located less than two miles from the Client’s office

Challenge

B&B’s client (a world-renown modeling agency with offices throughout the United States and in Europe), had engaged an Individual as its Vice President of Global Business Development pursuant to a written and executed employment agreement.

Without advance notice, the Individual resigned via email at 10 p.m. one weeknight and purported to start employment the next morning as President of one of the Client’s competitors, at an office less than two miles away. During the course of employment, the Individual was one of the Client’s most senior and top-performing revenue generating individuals who maintained a direct nexus, and close relationships, with the Client’s most highly-valued models, talent, and clients. In fact, the individual had unfettered access to the Client’s customer lists, client lists, scouting plans, etc.

Solution

The Employment Agreement contained certain restrictive covenants, including non-compete and non-solicitation obligations owed by Defendant to B&B’s Client. Accordingly, B&B immediately filed a lawsuit in the Commercial Division of the Supreme Court against the Individual, asserting that the scheme to unlawfully resign under cover of night, in violation of the non-compete, was illegal. In addition, B&B filed an Order to Show Cause and requested a Temporary Restraining Order precluding the Individual from commencing employment as President of the competitor entity.

Results

After the filing of papers and oral argument concerning the request for a Temporary Restraining Order, the Judge agreed with B&B’s arguments and entered an Order precluding the Individual from commencing employment with the competitor. 

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