In a 2-1 decision, the U.S. Court of Appeals for the Ninth Circuit recently reversed a district court’s order enjoining the enforcement of California Assembly Bill 51 (“AB51”), which is codified as Labor Code section 432.6. The statute prohibits requiring arbitration of California Fair Employment and Housing Act (“FEHA”) and Labor Code claims as a […]
Ecolab Sues Former Employee For Allegedly Stealing Trade Secrets
In another high profile trade secret case, water treatment giant Ecolab, Inc. sued one of its former marketing managers, Preston Alexander, and his new company, One Degree Medical, alleging they stole trade secrets to set up a competing business in violation of both the employees’ employment agreement, and state and federal trade secrets laws. EcoLab’s […]
Courts Differ on Where Website Operators are Subject to Personal Jurisdiction
Courts are increasingly being asked to decide when website operators are subject to personal jurisdiction in a particular state, a potentially vexing problem because websites generally lack a specific location and can be accessed from almost anywhere on the globe. In June 2020, the U.S. Fourth Circuit Court of Appeals, in UMG Recordings, Inc. v. […]
Delaware Court Rules that Stockholder Right to Inspect Books is a Matter of “Internal Affairs”
On August 13, 2020, the Delaware Court of Chancery issued an opinion in JUUL Labs, Inc. v. Grove, holding that a stockholder could not use Section 1601 of the California Corporations Code to inspect the books and records of a Delaware corporation because the “internal affairs doctrine” dictated that Delaware law must apply. The case arose when Daniel […]
What to Do When an Employee Steals Company Trade Secrets
If an employee of your company stole an item of tangible company property when he left to start another job – like a car, or computer, or airplane – would you just let it go? Of course not. Yet, studies show that 50 percent of departing employees take confidential business information from their employer before […]
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