Recovering Damages for Breach of Restrictive Covenants: Non-Competition, Non-Solicitation, and Non-Disclosure
Pursuing Lost Profits, Clawback Compensation, Inducement Payments, Loss of Good Will, and Other Damages
Recording of a 90-minute CLE webinar with Q&A
This CLE webinar will guide employment counsel for proving damages after a current or former employee breaches a restrictive covenant, whether that is a covenant not to compete with the employer, a non-solicitation of the employer's employees or customers, or a nondisclosure agreement regarding the employer's trade secrets or other confidential information. The panel will also discuss circumstances in which the breach of a restrictive covenant implicates the fiduciary duty of loyalty and potential resulting damages.
Outline
- Potential causes of action following the breach of a restrictive covenant
- Breach of covenant
- Breach of the fiduciary duty of loyalty
- Pursuing damages from the employee
- Lost profits damages
- Clawback compensation
- Restitution
- Goodwill impairment damages
- Liquidated damages
- Damages available under Defend Trade Secrets Act of 2016
- Pursuing damages from employee's new employer
- Evaluating when to seek damages from a new employer
- Tortious interference with contract
- Aiding and abetting breach of fiduciary duty
- Tips on drafting enforceable restrictive covenants
Benefits
The panel will review these and other high priority issues:
- What types of damages may employers pursue when a current or former employee breaches a restrictive covenant?
- How does the Defend Trade Secrets Act of 2016 address damages for disclosing trade secrets?
- What are the methodologies to establish damages?
- When can and should an employer go after a former employee's new employer for damages for breach of a restrictive covenant?
- What remedies and damages are available when the wrongdoing occurs outside the U.S.?
- How can employers draft enforceable covenants to maximize potential damages and equitable remedies?
Faculty

Jesse M. Coleman
Partner
Seyfarth Shaw
Mr. Coleman assists clients with breach of contract and general business tort litigation. He has handled numerous trade... | Read More
Mr. Coleman assists clients with breach of contract and general business tort litigation. He has handled numerous trade secret and noncompete matters for clients across the business spectrum from hospitality to telecommunications. He has further successfully litigated multiple trade secret and noncompete matters, assisting clients in protecting their trade secrets, obtaining injunctive relief, and defending against claims of misappropriation.
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Erik W. Weibust
Partner
Seyfarth Shaw
Mr. Weibust represents clients in commercial litigation matters, including franchise, distribution, and real estate... | Read More
Mr. Weibust represents clients in commercial litigation matters, including franchise, distribution, and real estate disputes, to name a few. He has substantial case management experience from the early stages of litigation through the appeals process, including investigations, discovery, mediation, and trial and arbitration, as well as litigation avoidance.
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