McNamee Hosea News & Press


Dispute Between Companies Resolved Before Trial

In our last post, we discussed the fact that employers should take into consideration several things before deciding for or against litigation in the event of a dispute. Failing to do so could wind up costing an employer much more than money.

Thankfully, many people have the help of an attorney when they find themselves involved in an employment dispute. An attorney can help people assess the reality of the situation and take a look at the bigger picture. Oftentimes, this means negotiating a settlement and avoiding litigation. That appears to be the route one company took recently.

According to reports, Standard Register Co. had filed a lawsuit against two former employees of the company who evidently left the company to start their own. Standard Register argued that the employees took sensitive client information with them and had plans to use that information to take away one of the company's primary customers.

The two former employees involved maintained that they did not steal any protected information and had no intention of luring any clients away from Standard Register. In fact, they stated, their new company is not in competition with their former employer.

Rather than take the case to trial, which was scheduled to happen later this month, the two sides agreed to a settlement. Reports indicate that the sensitive material in question would all be returned to Standard Register and the former employees will not be allowed to contact the primary customer until after September. Both sides will also pay their own legal fees.

This case can be considered an example of the way many employment disputes are resolved: Both parties walk away with something and can focus on using their resources for things other than litigation. In many situations (though not all, of course), this is in an employer's best interest because it can allow them to resolve messy disputes, minimize negative publicity and still protect themselves and the future of their business.

Source: Dayton Business Journal, "Standard Register drops lawsuit against former employees," Aug. 17, 2015