A U.S. magistrate recommended holding a regional sales manager and his employer in civil contempt for their violation of a preliminary injunction filed by a direct competitor and former employer who sued for breach of contract and tortious interference.
Casey Jenkins was employed by Edwards Moving & Rigging as a regional sales manager for two years, abruptly quit then joined competitor Sims Crane & Equipment despite having signed a non-compete agreement, according to Edwards’ complaint filed in the Middle District of Florida.
“Sims was well-aware both of Jenkins’s non-compete agreement with Edwards and that Jenkins necessarily would bring with him keen insight into Edwards’s bidding process and pricing strategy—information of considerable competitive value to Sims,” wrote Edward’s attorney Brett J. Preston in his client’s complaint against Jenkins, Sims Crane & Equipment Co., and Sims HD, LLC.
At a Jan. 27 hearing, defendants admitted they had violated the preliminary injunction but argued that it was light and short-lived, according to the April 1, 2020 Report and Recommendation issued by Magistrate Sean P. Flynn.
“Having considered the Motion, responsive filings, and the argument of counsel, it is recommended, for the reasons that follow, that an order be entered holding Defendants in civil contempt for their violations of the Preliminary Injunction and awarding Plaintiff its attorneys’ fees incurred in prosecuting Defendants’ violations,” Flynn wrote in his opinion.
The magistrate further recommended that if Edwards prevailed at trial that Defendants should disgorge the profits earned from any Sims HD contracts for which a quote was furnished with Jenkins’ assistance and upon which Plaintiff also bid.
“It is further recommended that the non-compete period contained in Jenkins’ employment agreement be extended for two (2) years from the date of the contempt finding if trial in this matter results in a verdict in favor of Plaintiff on its claims to enforce the non-competition restrictive covenant contained in Jenkins’ employment agreement,” Flynn wrote.