The Lawletter Vol 43 No 6
A federal district court sitting in Pennsylvania has held that an employer may proceed with its unfair competition suit asserting contract and tort claims against a former employee and the employee’s current employer. The employer adequately stated claims of common-law breach of fiduciary duty and unfair competition against the employee, and of aiding and abetting the same against the competitor. However, the employer’s claim of tortious interference with prospective contractual relationship against the employee would be dismissed because the complaint failed to allege a sufficient likelihood of a prospective contract. Neopart Transit, LLC v. CBM N.A., Inc., 314 F. Supp. 3d 628 (E.D. Pa. 2018).
The plaintiff in the case, an American corporate distributor of parts for transit buses (“employer”), brought suit against a former employee and the employee’s current employer, a Canadian corporation (“competitor”), alleging that the employee stole confidential and proprietary information before resigning to go to work for the competitor, which then used the stolen information to compete with and harm the employer’s business in the United States.Read More