Years-long arbitration ends in favor of IMcP client in business dispute

An arbitration tribunal awarded a decisive win to an IMcP client, a former Director of Operations who began the case as a defendant but ultimately recovered more money than his former employer. Following a two-week final hearing and years of litigation and arbitration activity, the award granted greater damages to the Director, dissolved prior injunctive relief, and denied the claimant’s requests for any further injunction.

Case background

The prior employer (“OldCo”) filed suit in Dallas against a former Director, who departed and started a competing business. OldCo alleged breach of contract (noncompete, nonsolicit, and nondisclosure), tortious interference, breach of fiduciary duty, and trade secret misappropriation. OldCo obtained a TRO and applied for a preliminary injunction in federal court. The Director then hired IMcP.

Temporary injunction

OldCo’s preliminary injunction application sought to stop the Director from competing and running his new business. That failed. The order enjoined certain solicitation but the Director was not prohibited from running his new business and competing.

Arbitration

The case then proceeded solely in arbitration for a year on (a) OldCo’s claims and (b) counterclaims filed by the Director. After lengthy discovery and pre-trial proceedings, the final arbitration hearing lasted about two weeks. The arbitration award resulted in damages for both sides but awarded much more in damages to the Director. The case had fully flipped. Moreover, the arbitrator dissolved the injunction and denied OldCo’s request for any further injunctive relief.

Greg McAllister served as lead counsel, working closely with IMcP partner Joshua Iacuone. Their work transformed a case that began with the Director on the defensive into a result where he secured both greater damages and complete relief from injunctive constraints.