Corporations typically rely on employees to handle and safeguard confidential business information, including trade secrets. Under Florida law, a business can seek protection contractually, most often a non-compete agreement, to restrict an employee or former employee from competing by joining a competitor’s business, starting a competing business, or facilitating competition by using confidential or trade…
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A fundamental tenet of corporate law is that corporations exist to limit liability of their shareholders, thereby encouraging investment and free enterprise. Sometimes, however, the corporate form is used as an instrument of fraud or other improper purpose. In such situations, parties sometimes seek to “pierce the corporate veil,” going behind the curtain of the…
Continue reading ›The Uniform Fraudulent Transfer Act, Chapter 26, Florida Statutes, sets forth remedies for a plaintiff to recover transfers determined to be fraudulent, as that term is defined by statute. Section 726.108(1)(c)(3), Florida Statutes, states that a movant may, in addition to remedies specifically enumerated, be entitled to pay “[a]ny other relief the circumstances may require.”…
Continue reading ›To prove a claim under the Florida Uniform Trade Secrets, the plaintiff “must demonstrate that (1) it possessed a trade secret and (2) the secret was misappropriated.” Yellowfin Yachts, Inc. v. Barker Boatworks, LLC, 898 F.3d 1279 (11th Cir. 2018). Florida law defines a trade secret (at Florida Statutes § 688.002(4)) as information that: (a)…
Continue reading ›Under Florida law, non-compete agreements between employers and employees are allowed when they comply with the requirements of Florida’s restrictive covenant statute, Section 542.335, Florida Statutes. For years, Florida law has allowed non-compete agreements to protect apparent “legitimate business interests” referenced in Section 542.335(1)(b), such as, for example, protecting an employer’s interests in retaining trade…
Continue reading ›The Internet allows a free flow of information that sometimes is defamatory and with intent to harm persons and businesses. Sometimes the party posting defamatory content is located in a state or place outside Florida, but a Florida person or business suffers harm in Florida. Florida businesses have sometimes sued for defamation, and the defendant…
Continue reading ›Where a plaintiff considers a lawsuit against a corporation for breach of contract, an important strategic consideration is whether the victorious plaintiff will be able to collect the judgment against the corporate defendant. In other words, will the corporation will have the financial means to pay the what is owed to the plaintiff? In Florida…
Continue reading ›Most litigation over restrictive covenants are resolved at the conclusion of the temporary injunction hearing. At that stage, the trial judge has made a decision whether the plaintiff is substantially likely to succeed on the merits of the case. The parties usually are motivated to settle the case at that point. However, in some cases…
Continue reading ›Florida’s non-compete statute goes hand-in-hand with Florida law prohibiting trade secret misappropriation. Under Florida’s statute governing non-compete agreements, a trade secret is a “legitimate business interest” to restrict employees and former employees from competing against their former employers. Florida Statutes § 542.335(1)(b)(1) (legitimate business includes “trade secrets”). A restrictive covenant in Florida is given an…
Continue reading ›Florida’s Deceptive and Unfair Trade Practices Act, commonly referred to as “FDUPTA,” prohibits “[u]nfair methods of competition, unconscionable acts or practices, and unfair or deceptive acts or practices in the conduct of any trade or commerce.” Florida Statutes section 501.204(1). A central feature of the statute is the statutory aim to protect consumers. A deceptive…
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