On November 10, 2006, The Wall Street Journal ran the story "The Breakup: When Brokerage Houses Attack, " chronicling the lawsuit filed by Milwaukee-based Robert W. Baird & Co. against three former employees who left to start their own rival firm.

If a departing employee is subject to a non-competition agreement, litigation will often result unless the departing employee/agent complies with the terms of that contract. Even absent a non-competition agreement, litigation may result where the employee/agent takes with him to a competitor trade secrets or other confidential or proprietary business information. In that case, the legal action will seek the return of the confidential business data and a court order barring any future misuse of that data. At times, an employee/agent has held such a unique position in a business that his departure to a competitor will inevitably lead to the disclosure of trade secrets or other confidential or proprietary business information. In that unique situation, a court might block the new employment even if a non-competition agreement does not exist. Also, any departing employee/agent who steals or destroys electronic data may be in violation of certain federal and state laws. See, for example, The Computer Fraud and Abuse Act, 18 U.S.C. § 1030, et seq., and The Electronic Communications Privacy Act, 18 U.S.C. § 2510, et seq.

For more information, please contact James M. Sconzo at (860) 392-5022, Paul A. Fischer at (202) 965-8126 or Waldemar J. Pflepsen, Jr. at (202) 965-8133.