20.02.2012

JLG wins ruling in trade secrets litigation

A legal team at Schiff Hardin has won a ruling for its client JLG, in a trade secrets litigation battle against a former employee.

JLG claims that the employee had copied computer files shortly before resigning from the company last September to join a competitor. The company instructed Shiff Hardin to file law suits against both him and the competitor, who has not been named in Shiff Hardin’s release, we understand that the company concerned is North American based.

JLG's complaint alleged that the employee had extensive knowledge of JLG's confidential information and that his employment with the competitor threatened disclosure of its confidential information. Temporary restraining and evidence preservation orders were granted.

In a subsequent hearing in December, the court was persuaded by the testimony of forensic experts that computer files had indeed been copied and that Baxter had failed to disclose them in breach of the restraining order. The judge therefore agreed that the employee was in contempt of court and issued a deadline by which the location of the files be disclosed, with a daily cash penalty if the deadline was not met.

In a further hearing last week, the court found that the employee had violated the court order deadline and therefore issued a demand that a fine be paid immediately and that the daily penalty continue to accrue until the location of the files is revealed.

At the same time JLG announced that it had reached a settlement with the unnamed competitor and that the employee is now the sole remaining defendant in the litigation.

We did manage to reach the ex employee, who declined to make any comment, in light of the on-going litigation. He did though refer us to his lawyers who have been contacted.