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First Western Capital Management Co. v. Malamed, Case Nos. 16-1434, 16-1465 & 16-1502 (10th Cir. Oct. 30, 2017)

Articles Discussing Case:

Tenth Circuit Significantly Narrows Scope of Injunction Cases Where Irreparable Harm is Presumed

Littler Mendelson, P.C. • November 07, 2017
On October 30, 2017, the U.S. Court of Appeals for the Tenth Circuit held that a moving party is not excused from showing irreparable harm prior to the issuance of a preliminary injunction in a trade secret misappropriation case. First Western Capital Management Co. v. Malamed, Case Nos. 16-1434, 16-1465 & 16-1502 (10th Cir. Oct. 30, 2017). The Tenth Circuit reversed a trial court’s decision that issued an injunction without a showing of irreparable harm, which was presumed based on a statutory violation. Departing from prior Tenth Circuit precedent, the court found that the only circumstance where a trial court can excuse the moving party from demonstrating irreparable harm is where the statute calls for mandatory, not permissive, injunctive relief. As a practical result, employers within the Tenth Circuit's jurisdiction must now prove that monetary relief is insufficient, and that only an injunction can provide adequate protection.1