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Articles Posted in Business Litigation

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FORT LAUDERDALE NON-COMPETE AGREEMENTS: FLORIDA LAW REQUIREMENTS FOR INJUNCTIONS

Florida law sets forth the requirements for entry of a non-compete injunction, i.e., a court order barring competition under specified circumstances and duration.  Relevant here, section 542.335(1)(j), Florida Statutes, provides that a court shall enforce a valid “restrictive covenant by any appropriate and effective remedy, including but not limited to,…

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FORT LAUDERDALE BUSINESS LITIGATION: SEEKING DAMAGES UNDER THE FLORIDA UNIFORM COMMERICAL CODE

“In an action for breach of contract, the goal is to place the injured party in the position it would have been in had the other party not breached the contract so as to give the aggrieved party the benefit of its bargain.” Katz Deli of Aventura, Inc. v. Waterways…

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MIAMI BUSINESS LITIGATION: PIERCING THE CORPORATE VEIL TO HOLD INDIVIDUALS LIABLE FOR DEBTS OF A BUSINESS ENTITY

“A general principle of corporate law is that a corporation is a separate legal entity, distinct from the individual persons comprising them, and, absent some basis to pierce the corporate veil, there is no basis for imposing liability for corporate debts and obligations under the individuals.” Beltran v. Vincent P.…

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FORT LAUDERDALE BUSINESS LITIGATION: PREEMPTION UNDER THE DEFEND TRADE SECRET ACT VS. THE FLORIDA UNIFORM TRADE SECRET ACT

The Defend Trade Secret Act of 2016 (DTSA) provides civil remedies in federal courts for trade secret misappropriation. 18 U.S.C. §§ 1836 et. seq. Before the DTSA was enacted, trade secret holders were required to protect against and remedy trade secret misappropriation in state court. Most states have adopted some…

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MIAMI BUSINESS LITIGATION: FRAUD DAMAGES AND LOST PROFITS UNDER FLORIDA LAW

Under Florida law where fraud is alleged and proven, courts calculate damages using a a doctrine called the “flexibility theory” of damages.  Totale, Inc., v. Smith, 877 So. 2d 813 (Fla. 4th DCA 2004). Under this doctrine, the plaintiff in a fraud action may seek recovery of “out-of-pocket” expenses or…

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FORT LAUDERDALE BUSINESS LITIGATION: UNREGISTERED TRADEMARKS CANNOT BE GENERIC AND MUST BE DISTINCT

A prevalent issue in business litigation is whether a business’ unregistered name or mark qualifies for trademark protection. Under Florida’s common law, to “prevail on a common law trademark infringement claim, where the mark has not been registered, a plaintiff must show that it has trademark rights on the mark…

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MIAMI BUSINESS LITIGATION: DESCRIPTIVE TRADEMARKS REQUIRE A SECONDARY MEANING IF THEY ARE NOT INHERENTLY DISTINCT

Trademark infringement claims are common in business litigation. If a trademark application is still pending, or where a mark was never registered at all, then it is not presume that a given mark qualifies for trademark protection under Florida or federal law. Therefore, to establish a claim of trademark infringement,…

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FORT LAUDERDALE NON-COMPETE AGREEMENTS: SUBSTANTIAL BUSINESS RELATIONSHIPS MUST BE IDENTIFIABLE AND SPECIFIC

A prevalent issue in non-compete litigation is whether a company’s non-compete agreement is enforceable to protect its substantial business relationships. These business relationships must be specific and identifiable, but they are not required to be contractual in nature. Indeed, prospective substantial business relationships are protected if they fit these requirements.…

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MIAMI BUSINESS LITIGATION: BUSINESSES MUST TAKE REASONABLE MEASURES TO MAINTAIN THE SECRECY OF ITS TRADE SECRETS

In business litigation, a commonly litigated issue is whether a business took reasonable measures to maintain the secrecy of its alleged trade secret information. If such measures are not taken, then Florida courts routinely find that the subject information is not a protectable trade secret. Under Florida law, businesses must…

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FORT LAUDERDALE NON-COMPETE AGREEMENTS: ENFORCING REASONABLE RESTRICTIONS

The law regarding the enforceability of non-compete agreements varies by state. Under Florida law, three requirements must be satisfied for a restrictive covenant to be enforceable: (1) the restrictive covenant must be “set forth in writing signed by the person against whom enforcement is sought”; (2) the party seeking to…

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