Moving quickly, and what the court will want to see.
Esshaki Legal Media TeamCurrent as of June 2024
Enforcement of a covenant is a preliminary injunction case, decided within weeks
of the departure.
Act immediately. Delay undercuts irreparable harm. An employer that waits
two months is met with its own timeline, and courts say so.
The showing. Likelihood of success — a valid covenant, a breach, and a
protectable interest; irreparable harm; the balance of hardships; and the public
interest, which in these cases includes the employee’s ability to earn a living.
Irreparable harm established through loss of customer relationships and
goodwill, and through the risk of disclosure of confidential information — not
through lost sales, which are compensable.
Evidence. The agreement with proof of execution and consideration; the
employee’s role and access; the forensic evidence of what was taken; customer
contacts after departure; and the new employer’s competing business.
Relief to request. Specific and operational — no contact with identified
customers, no work in a defined role, return and certification of materials —
rather than a general order not to compete.
Bond, and the risk of wrongful injunction damages.
Against the new employer. Tortious interference, with notice given promptly
so that continued employment is knowing.