Successful Representation of Client Noted in New York Law Journal; Richard Reice Quoted

A front page article in the January 10, 2007 issue of the New York Law Journal ("Judge Faults Staffing Agency's Use of a Rival's Trade Secrets") reports that "A New York-based placement firm and three of its employees unlawfully stole and used a competitor's trade secrets in order to launch their own competing temporary staffing business, a state judge has found. Supreme Court Justice Herman Cahn in 24 Seven v. Fiorello, 600547/04, confirmed a special referee's finding that defendant, The Gromwell Group, and three of its employees violated two temporary restraining orders by continuing to retain and use client information taken from plaintiff, 24 Seven, and by engaging in systematic spoliation of evidence before 24 Seven was set to proceed with discovery. ... 24 Seven places temporary and permanent employees - primarily graphic designers, pattern makers and other design talent - with its clients in the fashion industry. Defendants Christian Fiorello, Sal Furia and Demitra Parets are former employees of 24 Seven who accepted employment with another placement firm, The Gromwell Group. Messrs. Fiorello and Furia and Ms. Parets all had signed contracts with 24 Seven that contained restrictive covenants. 24 Seven argued that after they left to work for Gromwell, they violated the covenants by using 24 Seven trade secrets to help Gromwell start a competing business. A temporary restraining order was issued in March 2004 enjoining Gromwell and Ms. Parets from "using confidential information or documents that Parets learned, obtained, created or assisted in creating while [an employee of] 24 Seven." Defendants were directed to deliver to 24 Seven "all originals and copies or computerized records . . . [or] documents reflecting or containing confidential information of 24 Seven." A second temporary restraining order was issued later that month enjoining Gromwell and Messrs. Fiorello and Furia from using confidential information or documents that Mr. Furia "learned, created or assisted in creating" while at 24 Seven in order to solicit business from its customers. On June 5, 2006, Special Referee Louis Crespo held hearings at which five former employees of The Gromwell Group testified. Three of the former employees, who later went to 24 Seven, testified that employees at Gromwell shredded and discarded confidential documents from 24 Seven in their possession prior to discovery. ... 24 Seven was represented by Richard Reice, a partner at Seyfarth Shaw. Mr. Reice said the decision could have broad application in the area of restrictive covenants. "Lawyers always say it is tough to enforce restrictive covenants, but this decision shows that the courts will be quick to enforce such agreements," Mr. Reice said."