News & Events

News & Events

10.7.2014

Check Your C-Suite Employee at the Door — Managing Competitor Misconduct

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Lane Powell Shareholder Susan K. Eggum authored an article in Oregon Business magazine’s October 2014 issue titled “Check Your C-Suite Employee at the Door — Managing Competitor Misconduct.” In the article, Eggum addressed managing the risks of trade secret misappropriation when a C-suite employee joins or leaves a company in possession of highly proprietary, non-public information. Despite best efforts to manage the risks, forming and ending C-suite employment relationships in industries that leverage proprietary data can involve demands, claims and litigation. Depending on whether you lost or gained the executive, even where no non-compete was signed and even where the information at stake may not qualify as a trade secret, common law tort remedies are also available to address management of these risks.

In short, forming and ending C-suite employment relationships in industries that leverage proprietary data frequently involve demands, claims and litigation, despite best efforts to manage the risks. For better or for worse, depending on whether you lost or gained the executive, even situations lacking a non-compete agreement or qualifying trade secrets, tort remedies are just as sweet to the courts as contract and statutory claims.

Read the article (PDF).