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Vol. II, Issue No. 5 
October 31, 2013
Happy Halloween! This month's briefing relates a recent non-compete case highlighting the importance of choosing remedies.  News of Kenny Lee's Florida Bar admission, some awards and our mayoral preference is also found below. Thanks for allowing us to e-mail you.  


Non-Compete Agreement: Liquidated Damages or Injunction? Choose Wisely

A recent Kent County Michigan Business Court case teaches a good lesson on drafting damages clauses in employment agreements: like the Indiana Jones movie line, "choose wisely."


In Conway, Dierking & Hillman v. Eric Inch and Apex Digital Solutions, Inc., the plaintiff sought to enforce a non-compete provision in the defendant's employment agreement.  It requested the Court to issue a preliminary injunction prohibiting the defendant from working for his new employer. The non-compete provision included a liquidated damages clause requiring the employee to pay plaintiff 75% of his compensation for the preceding 12 months in the event of a breach.


While the Court concluded that the plaintiff and the defendant's new employer "almost certainly will compete at least on occasion, for business opportunities," it refused to prohibit the defendant from working for his new employer.  It found there was no irreparable harm because the parties agreed to a legal remedy in the form of liquidated damages to redress any breach of the non-compete provision. The Court determined an injunction was only appropriate with respect to confidential and proprietary information that the employee may have retained and therefore ordered that information to be returned and not disclosed.

Any employer would be wise to consider whether liquidated damages are more important than prohibiting an employee from working for a competitor.
Kenny Lee Becomes Licensed In Florida
Kenny Lee recently became the fourth HSP attorney to become licensed in Florida. Kenny's admission provides us with another resource to serve our Florida clients.  He was sworn in to the Florida Bar by Collier County Judge Vince Murphy on October 4th. We then hosted a reception for our Florida clients and business contacts near our Naples office. Thanks to all who joined us to help celebrate - and congratulations, Kenny!
HSP Lawyers Honored 
John Hubbard, Eric Parzianello and Gavin Fleming were honored as 2013 Michigan Super Lawyers! Super Lawyers is a rating service of outstanding lawyers who have attained a high degree of peer recognition and professional achievement comprising no more than 5% of the attorneys in the state.  The Super Lawyers Magazine was included as a special insert in Crain's Detroit Business earlier this month.
HSP Supports Mike Duggan
HSP is a proud supporter of Detroit Mayoral Candidate Mike Duggan. The firm participated as a host committee member for a recent Detroit Chamber Breakfast Fundraiser.  There are many great things happening downtown which are creating opportunities for new businesses and we believe Mike will be able to continue that momentum.

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Lee Sworn In
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