Preliminary Injunction Entered After Texas Federal Court Concludes That Ex-Employee “Inevitably” Will Disclose His Former Employer’s Trade Secrets

An employee entered into non-compete and confidentiality agreements with his employer.  Following his resignation from that company, he went to work for a competitor.  His job functions and territory with both employers were similar.  In a suit for violation of the non-compete and confidentiality agreements, a Texas federal court held recently that — absent an injunction — disclosure to his new employer of his former employer’s confidential information was inevitable.  The court concluded that all of the prerequisites were met for a preliminary injunction. Brink’s Inc. v. Patrick, Case No. 3:14-cv-775-B (N.D. Tex., 6/26/14).

Summary of the Case

Greco was employed by Brink’s, a provider of secure money transport services.  Shortly before resigning from Brink’s to go to work a competitor, he allegedly transferred confidential files from his Brink’s office computer to his personal thumb drive and then deleted the files from the computer.  Brink’s sued him in a Texas state court, and he removed to the federal court.  Brink’s claimed that disclosure of its trade secrets was inevitable unless Greco was enjoined from competing with Brink’s for the entire two-year term of the non-compete.  The court granted the motion in part, limiting the scope of the covenant and enjoining Greco only while the litigation is pending.

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