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contractinjunctionmotion
injunctionmotion

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AM Medica Communications Group v. Kilgallen, 261 F.Supp.2d 258

Facts

Kilgallen was employed by AMM from 1995 until her resignation in December 2002 to work for Agenda West, LLC, a competitor. During her employment, she signed a contract that included a restrictive covenant preventing her from soliciting AMM's clients for two years and a confidentiality covenant requiring her to keep AMM's confidential information secret for seven years. AMM alleged that Kilgallen violated these covenants by working with Pfizer, a client of both AMM and Agenda, but Kilgallen argued that the covenants were unenforceable and that AMM had not shown any irreparable harm.

Kilgallen was employed by AMM from 1995 until her resignation in December 2002 to work for Agenda West, LLC, a competitor.

Issue

Did Kilgallen violate the restrictive and confidentiality covenants in her employment agreement with AMM, and is AMM entitled to a preliminary injunction?

Did Kilgallen violate the restrictive and confidentiality covenants in her employment agreement with AMM, and is AMM entitled to a preliminary injunction?

Rule

To obtain a preliminary injunction, a party must demonstrate irreparable harm and either a likelihood of success on the merits or sufficiently serious questions going to the merits of the claim. Restrictive covenants in employment contracts are enforceable only if they are reasonable in time and geographic scope and necessary to protect legitimate business interests.

To obtain a preliminary injunction, a party must demonstrate irreparable harm and either a likelihood of success on the merits or sufficiently serious questions going to the merits of the claim.

Analysis

The court found that AMM did not sufficiently demonstrate that Kilgallen's employment with Agenda threatened its business or reputation. It noted that Kilgallen's departure occurred after Pfizer had already chosen Agenda for the Meeting, and there was no evidence that she had solicited clients or used confidential information inappropriately. The court also determined that the restrictive covenant was overly broad and unreasonable, as it imposed significant limitations on Kilgallen's ability to work in her field.

The court found that AMM did not sufficiently demonstrate that Kilgallen's employment with Agenda threatened its business or reputation.

Conclusion

The court denied AMM's motion for a preliminary injunction and dismissed the complaint, concluding that AMM failed to prove irreparable harm and that the restrictive covenant was unenforceable.

The court denied AMM's motion for a preliminary injunction and dismissed the complaint.

Who won?

Kilgallen prevailed in the case because the court found that AMM did not demonstrate irreparable harm and that the restrictive covenant was unreasonable.

Kilgallen prevailed in the case because the court found that AMM did not demonstrate irreparable harm and that the restrictive covenant was unreasonable.

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