By Jerry Carter. A September 7, 2012 Order offers a glimpse into the circumstances under which a Washoe County Business Court will enforce, at least temporarily, a covenant not to compete. The Court found that two individuals signed covenants not to compete with the Plaintiff employer for one year following termination of their employment. The Plaintiff employer presented affidavits indicating that the employees voluntarily terminated their employment with the Plaintiff employer and then went to work for the Defendant employer. While with the Defendant employer, the employees began soliciting customers and employees of the Plaintiff employer. Allegations of misappropriation of trade secrets and confidential information were thrown into the mix.
The Washoe County Business Court entered a temporary restraining order temporarily restraining the employees and the Defendant employer. The order restrains them from soliciting employees and customers of the Plaintiff employer, doing business with customers that were previously solicited, and from using trade secrets and confidential information of the Plaintiff employer.