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Is Insurance Coverage Available for Trade Secret Litigation?

An accomplished employee leaves to start her own business, and rapidly succeeds in attracting customers. Although California favors employee mobility, she and her new company are sued by her former employee for trade secret misappropriation. As the employee and her company face the immediate threat of a motion for preliminary injunction and temporary restraining order, the potential of insurance coverage to defend against the action may be overlooked.

The California Evidence Code and Trade Secrets

The important relationship between the California Uniform Trade Secrets Act and the California Evidence Code may not be readily apparent to parties engaged in trade secret litigation. When an employee leaves their employment, the subsequent lawsuit by a former employer often involves issues relating to nondisclosure agreements, noncompetition clauses...

Avoiding the Trojan Horse When Onboarding Employees

Hiring a new employee who has outstanding work experience and qualifications, stellar performance in multiple interviews with management, and fits a critical part of the firm’s business is an exciting experience, indeed, like a gift. While employers that retain promising new employees may not suffer the same fate as the Trojans...