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Total Articles: 5

Tennessee Federal Court Refuses To Apply Inevitable Disclosure Doctrine

Williams-Sonoma is embroiled in a contentious trade secret theft case with its former executive and direct competitor. On June 18, 2015, a federal district court in Tennessee granted a preliminary injunction motion to enjoin Williams-Sonoma’s former vice president and direct competitor from using confidential business information, soliciting Williams-Sonoma employees, and destroying electronic evidence. But the federal court refused to give Williams-Sonoma everything it requested.

Federal Court Invalidates Tennessee Choice-of-Law Clause in Louisiana Employee’s Non-Compete

The federal district for the Western District of Louisiana added to the growing list of decisions that have applied Louisiana’s non-compete statute to invalidate choice-of-law or forum-selection clauses. These decisions have struck down clauses that, on their faces, would have required Louisiana employees of non-Louisiana employers to litigate under the law or in the courts of some other state. The decisions should also serve as a reminder that employers should not take a one-size-fits-all approach when drafting non-competes for employees residing in multiple states.

Tennessee Court Of Appeals Issues New Guidance On Trade Secret Issues

On August 19, 2014, the Tennessee Court of Appeals became the first Tennessee appellate court to address the scope to which Tennessee’s Uniform Trade Secret Act (TUTSA) preempts common law claims related to unfair competition and misuse of confidential information. In Ram Tool & Supply Co., Inc. v. HD Supply Construction Supply, Ltd. the Tennessee Court of Appeals adopted the reasoning and rationale of one the most influential opinions in the country on TUTSA’s preemptive scope: Hauck Manufacturing Co. v. ASTEC Industries, Inc. The Hauck opinion was authored by Judge Collier of the U.S. District Court for the Eastern District of Tennessee at Chattanooga.

How to Protect Confidential Business Information in Tennessee

A dilemma employers often face when key employees leave and join a competitor is how to stop the employee from taking and misusing the employer’s confidential business information.

New Law Specifies Physicians' Non-Compete Agreement Requirements.

On June 21, Governor Phil Bredesen signed House Bill 240/Senate Bill 1688, which was the General Assembly’s response to a 2005 case in which the Tennessee Supreme Court declined to enforce a non-compete provision in an employment contract between a physician and a clinic. In Murfreesboro Medical Clinic, P.A. v. Udom, the state’s highest court held that, except for restrictions specifically provided for by Tennessee’s corporate practice of medicine statute, “covenants not to compete are unenforceable against physicians.”