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United States: Recent Judgment In Massachusetts Case Shows That Cases Involving Faithless Employees Sometimes Go To Trial And Result In Big Money Verdicts
As reported by
Massachusetts Lawyers Weekly last week (subscription required),
late last year a Middlesex County jury found a defendant
company liable for over $1.3 million in damages to the plaintiff
competing company in a case involving the plaintiff's former
employee. The plaintiff, an energy broker, alleged that its
former employee, while working
for the plaintiff, secretly affiliated with the
competing company, another energy broker, to divert the
plaintiff's customers and one of its energy programs to the
defendant company. The jury found the defendant company
liable for aiding and abetting the plaintiff's former employee
in the breach of his fiduciary duties to the plaintiff and for
tortiously interfering with the plaintiff's relationship with
its employee. The employee was also liable for $355,000, but
that amount was offset by an award for the employee against the
plaintiff. The verdict was only reported recently because a
dispute over the form of judgment delayed the final judgment for
several months.
This verdict shows that, although most noncompete-type cases are
effectively resolved at an early stage by a judge
deciding a motion for a preliminary injunction to stop an employee
and a competing company from improperly harming a plaintiff's
business, sometimes these cases continue all the way through
the trial phase, where big money might be at stake.
To view Foley Hoag's Massachusetts Noncompete Law
Blog please click
here
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