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PharMethod, Inc. v. Caserta, No. 10-1388 (3d Cir. June 2, 2010) (unpublished)

Articles Discussing Case:

Third Circuit sets forth the criteria to support the imposition of an injunction related to a non-compete agreement.

Ogletree Deakins • June 15, 2010
Non-competition, confidentiality, and non-solicitation agreements all are examples of restrictive covenants that are used to preclude an employee from taking certain proprietary information or customers and using it (or them) in a way that may adversely affect the individual’s previous employer. When a company determines that a former employee may be prepared to violate such an agreement, it often will ask the court for injunctive relief that can include ordering the individual to refrain from taking certain actions over the period of time during which the validity of the restrictive covenant is determined. The 3d U.S. Circuit Court of Appeals recently vacated a district court’s preliminary injunction, finding that the lower court insufficiently evaluated and supported its decision to enforce a noncompetition agreement