Liquidated Damages, A Permanent Injunction, and Attorneys’ Fees Awarded For Violating Non-Disclosure/Non-Compete Agreement And Preliminary Injunction

In a well-written recent opinion concerning violation of both a confidentiality/non-compete agreement and a preliminary injunction, a federal judge explained in detail why she was awarding liquidated damages, entering a permanent injunction, and assessing legal fees.

Summary of the Case

Two financial planners, one an individual and the other a corporation, negotiated a merger of their businesses.  Before being provided with details concerning the corporation’s methodologies and strategies, the individual executed confidentiality and non-competition covenants.  When the merger negotiations collapsed, the financial planners went their separate ways.  However, the corporation subsequently sued the individual for breach of the covenants.  A preliminary injunction was entered against her which,  after a trial, she was found to have violated.  The court entered an order of contempt, issued a permanent injunction, and awarded the corporation liquidated damages and attorneys’ fees.  Retiree, Inc. v. Anspach, No. 12-2079-JAR (D. Kan., 7/2/14) (Robinson, J.).

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