Preliminary Injunction Denied in Competitor Hiring Case
The Eastern District of Missouri denied a preliminary injunction in American Equity Mortgage, Inc. v. First Option Mortgage LLC, 2006 WL 3032417 (E.D. Mo. 10/23/06).
First Option opened a branch in Indianapolis by hiring away 7 of American Equity's employees, even though all these employees had signed noncompete agreements. American filed suit against First Option claiming tortious interference with these contracts.
The court found no likelihood of success because the employees themselves contacted First Option to seek new employment. The court also found lack of irreparable harm in that Americna Equity has a long history of not enforcing its noncompete agreements.
