Preliminary Injunctions in breach of Non-Compete/NDA

searcher profile

May 09, 2024

by a searcher from SDA Bocconi - School of Management in Fort Lauderdale, FL, USA

Has anyone ever seen an arbitrator or judge actually grant Preliminary Injunctions in the case of breach of a Non-Compete or NDA?

I have heard from an experienced deal maker that the Injunction/TRO is very rarely issued, even when breach causes financial harm and the agreement is in alignment with the statues, case law and is clear & unambiguous.

I have not had to deal with this issue as of today (Thank God)!


Enforceability is always a concern for me.
If I don't trust them I don't give them anything obviously.

Still, in reality, a Court or arbitrator's order could mean nothing really.

If they violate the Injunction/TRO they could get an arrest warrant issued and IF they happen to get pulled over while Driving for some moving violation, I believe then they get arrested (like unpaid child support).

But they could also flee the country!
(Or even leave to Mars in a few years ;)

Thx

=)

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commentor profile
Reply by a professional
from The Johns Hopkins University in Basking Ridge, NJ 07920, USA
For better or worse, I litigate these matters often so I have enough comments to bore the entire community to death. The answer depends on jurisdiction and state (federal courts in NJ and NY are less likely to enter a TRO/PI). Further, non-compete claims also often involve other claims including breach of confidentiality (the NDA you mentioned) and breach of a non-solicit that help in carrying the day. Given the new posture on non-competes, these related arguments may solely carry the day going forward.

Happy to discuss with anecdotes if of interest.
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