Management Recruiters of New River Valley v. Rowe

Nov 01, 2008

OUTCOME:

Our client, a successful recruiter, (think head-hunter) was sued in the spring of 2008 for over $300,000 in alleged damages by her prior employer. The employer alleged she breached her contract and non ... -compete when she started her own recruiting business within a 50 mile radius of her old office. In addition, it was alleged she misappropriated trade secret information and proprietary information. As the contract required arbitration, the case was heard and decided by an arbitrator rather than the local circuit court. The contract was held to be an unreasonable restriction on our client's right to make a living as well as being overly broad and not limited to protect the employer's legitimate business interest. Lastly, the Arbitrator held the franchise owner failed to provide specific proof of financial loss or damages. Defendant employee was able to keep working at her new business and did not pay her prior employer one cent.