A recent decision in Denver District Court, Business Network Consulting v. Perkins, demonstrates the risks taken by aggressive employers when they seek to impose restrictions on a former employee that aren’t set forth in any written agreement.

BNC, a computer consulting company, sprung into action when it learned that one of its customers had offered a job to its former employee, Perkins. BNC contacted its customer and threatened litigation even though the customer had never signed BNC’s form contract that barred customers from hiring BNC’s employees for a limited time after an employee left BNC. Reluctant to get involved in litigation, the customer conferred with Perkins about BNC’s threats and Perkins elected not to go to work for the customer. The customer then reached a settlement with BNC under which the customer disclosed its communications with the employee and agreed not to employ Perkins for several years.


Continue Reading

Mark Twain may have been right when he said that there were three kinds of lies: lies, damned lies and statistics. Nonetheless, it’s helpful to consider the statistics from the Annual Statistical Report on Colorado court filings when considering how a court approaches a noncompete or trade secret case. 

According to the 2013 annual statistical

In a noteworthy, but dated, decision from July 2013, Judge Daniel on the federal district court bench ruled that an employer had failed to prove that a "referral source list" was a trade secret. Accordingly, in Continental Credit Corp v. Dragovich, Judge Daniel held that the employee’s noncompete was not enforceable and denied employer’s

Location, location and location. That’s true with noncompete cases just as it is with real estate. 

Employees typically want to stay in Colorado. They want a Colorado court to apply Colorado law to their noncompete. Employees want to avoid the stress and expense of hiring counsel in another state. Employees hope to have the court apply Colorado law