Rob Smeltzer Successfully Obtains Temporary Restraining Order

"Rob Smeltzer successfully obtained a temporary restraining order ("TRO") in Cook County Circuit Court on behalf of an insurance brokerage client in a restrictive covenant case. The TRO precludes our client's (an insurance brokerage) former employee from soliciting his former customers. The former employee argued that the insurance brokerage did not have a "protectible interest" in or "near permanent relationship" with the customers that the former employee had brought to the brokerage. The former employee also argued that the restrictive covenant lacked consideration and that the existence of a liquidated damage provision in the employment contract containing the restrictive covenant meant that injunctive relief was inappropriate and that there was an adequate monetary remedy for breach of the covenant. In rejecting this argument, the Court held that the insurance brokerage did have a protectible interest in its confidential information and trade secrets (e.g. premium information, amount of commission, policy expiration and renewal information) concerning those customers, such that the former employee would be able to unfairly compete with the insurance brokerage in the absence of an injunction. The Court further found that the restrictive covenant was narrowly drawn to promote this protectible interest."