Civil Procedure II Outline 2 (Best)

Civil Procedure II Outline 2 (Best) - -1- -1- CIVIL...

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- 1 - - 1 - C IVIL P ROCEDURE II O UTLINE EQUITABLE REMEDIES Specific Remedies Equitable relief (injunctions, etc.) is primarily only available in the absence of an adequate legal remedy or when the I will suffer irreparable harm. This is discretionary relief that is granted only after a balance of the hardships. Non-compete covenants and Confidentiality agreements Sigma Chemical (ED Mo., 1985) - Harris, an employee of Sigma, signed a covenant not to compete and to maintain confidentiality regarding any confidential information he received during employment with Sigma. He left Sigma's employ and went to work for a competitor, and began using information regarding chemical suppliers, breaching his agreement. Sigma sought injunctive relief. Question: Whether the covenant not to compete and confidentiality agreement will be enforced if 1.) the court finds the agreements to be reasonable and 2.) the hardship on the plaintiff if relief is denied is greater than the hardship which is placed upon defendant by granting it? Yes 1.) a covenant not to compete is reasonable if: (i) the agreement must be reasonably necessary to protect the employer's legitimate interest; (ii) must be for a reasonable time; and, (iii) must be reasonable in geographic scope . The Court decided that the Sigma agreement was reasonable. 2.) To determine if a permanent injunction was proper, the court balanced the hardships imposed on the 2 parties and considered if the plaintiff had an adequate legal remedy. The would have a serious hardship in that Harris would be contributing knowledge to a service or product that is competitive w/ and similar to a svc. or product on which Harris worked at Sigma, and Harris would be in a position to disclose secret trade info. that he learned from Sigma’s product files. (No adequate remedy at law b/c irreparable injury would be possible. Damages would be difficult to calculate and Harris wouldn’t have the money anyway, so an equitable remedy instead of legal is simpler and will work.) The ? would also incur hardship in that he wouldn’t be able to work for the competitor, and would be permanently barred from utilizing his knowledge of Sigma’s sources so long as the information remains secret. This is diminished by the fact that other former employees have been able to find work w/ non-competitors, and further by the fact that Harris knew of the restrictions imposed by the contract and decided to violate it anyway. The injunction was granted under the terms of the agreement; defendant was not allowed to work for ICN until November 22, 1985. ***Covenants not to compete and protect confidentiality of trade secrets agreements will be enforced if such are found to be reasonable and the granting of the injunction, on balance, is justified because the Plaintiff has no adequate remedy at law. Declaratory Relief
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This note was uploaded on 06/15/2009 for the course LAW 577 taught by Professor Staff during the Spring '08 term at University of Arizona- Tucson.

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Civil Procedure II Outline 2 (Best) - -1- -1- CIVIL...

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