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Pennsylvania Sup. Court on No-Poach Clauses in Contracts


Friday, May 7, 2021
At the end of April, the Pennsylvania Supreme Court decided whether no-hire, or “no-poach,” provisions that are ancillary to a services contract between business entities are enforceable under the laws of this Commonwealth. It held that they are not.[1]
Pittsburgh Logistics Systems, Inc. (“
PLS”) is a third-party logistics provider that arranges for the shipping of freight with selected trucking companies. Beemac Trucking (“
Beemac”) is a shipping company that conducts non-exclusive business with PLS.
In 2010, PLS and Beemac entered into a Motor Carriage Services Contract. It contained both a non-solicitation provision and the no-hire provision. While the contract was in force, Beemac hired four PLS employees. On November 29, 2016, PLS filed an action in the Court of Common Pleas of Beaver County against Beemac alleging breach of contract, tortious interference with contract, violation of the Pennsylvania Uniform Trade ....

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Pennsylvania Supreme Court Strikes Down No-Hire Agreement - Anti-trust/Competition Law


In
Pittsburgh Logistics Sys, Inc. v. Beemac
Trucking, LLC, No. 31 WAP 2019, 2021 Pa. LEXIS 1853 (Apr.
29, 2021), the Pennsylvania s Supreme Court concluded that a
no-hire provision in an agreement between two companies was not per
se unlawful; however, the Court ultimately concluded that this
particular restriction was unenforceable as an unreasonable
restraint on trade because it was too broad and because it would
harm parties not to the contract.
No-Hire Provision
The dispute centered on a contract between Pittsburgh Logistics
Systems, Inc. (PLS), a logistics provider that arranges for the
shipping of its customers freight, and Beemac Trucking
(Beemac), a shipping company that did non-exclusive business with ....

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Supreme Court Of Pennsylvania Finds No-Hire Provision Between Two Businesses


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The state Supreme Court agreed with the Superior Court s
determination, concluding that the no-hire provision at issue
is unreasonably in restraint of trade and therefore
unenforceable.
In its April 29, 2021, opinion, 
Pittsburgh Logistics
Systems v. Beemac Trucking,?A.3d?, No. 31 WAP 2019, 2021 WL
1676399 (Pa. Apr. 29, 2021), the Supreme Court of Pennsylvania
weighed in on whether no-hire, or no-poach, provisions
that are ancillary to a services contract between business entities
are enforceable under Pennsylvania law. The court declined to hold
such provisions 
per se  unenforceable. Its
answer for the clause at issue, however, was a resounding ....

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Recent Developments in Trade Secrets Damages | Fish & Richardson


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With the dramatic increase in trade secret cases since the 2016 passage of the Defend Trade Secrets Act (DTSA), and the large damages awards in many of these cases, it is now more crucial than ever to properly understand how to assess and calculate damages in trade secret cases. Trade secrets can mean big business for companies that hold them, and damages awards for trade secret misappropriation can reach into the hundreds of millions of dollars. For example, a jury in a recent New York trade secret misappropriation case awarded the plaintiffs an $855 million verdict.[i] In a recent webinar, Fish attorneys Esha Bandyopadhyay and Tommy Jacks discussed the current landscape of trade secret damages, both under the DTSA and various state laws, as well as some recent developments in trade secrets damages law. Below is a summary of those developments. For more information about trade secrets damages, please find a recordin ....

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