Maryland Live! Casino Sues to Stop Poaching of Its Customers
Information is often a business’s most valuable asset. A recent lawsuit is a reminder of what can happen when an ex-employee shares a customer list with a competitor.
According to a lawsuit filed in U.S. District Court for the District of Maryland, Maryland Live! Casino host, Helena Wong, resigned from her position and then, days later, accepted a job as a host at the new Horseshoe Casino Baltimore.
At her new post, she used customer data from her former employer to contact its biggest spending clientsso called “Chairman Club” and “Black Card” customersinviting them to gamble at the Horseshoe. In one of her e-mails to prospects, she wrote, “PLEASE DO NOT repeat or show this email to any of MD Live!’s personnel.”
Arundel Mills-based Maryland Live! sent her a cease-and-desist letter, asking her to destroy or return the stolen Maryland Live! property. The casino’s lawsuit against her alleges that she violated a confidentiality agreement and Maryland’s Uniform Trade Secrets Act
The lawsuit does not name the Horseshoe as a defendant, only Wong. The district court has, however, granted Maryland Live!’s request for a temporary restraining order prohibiting Wong or others working with her from using Maryland Live!’s lists or contacting its customers.
Beyond the TRO, Maryland Live! has asked the court to order Wong to return all originals and copies of the proprietary data. They have also asked the court to order her to turn over personal computers and cell phones, so Maryland Live! can have them erased by an expert. It wants an injunction forbidding Wong from contacting Maryland Live! customers for two years. Last but not least, Maryland Live! has asked for compensatory and punitive damages, attorneys’ fees, and any other monies Wong may have obtained from the use of the data.
Whether a company is software giant or a small local business, it usually has trade secrets in need of protectioncomputer code, chemical formulas, client lists, recipes, or other business methods. Non-compete, non-solicitation, and confidentiality agreements can be helpful, as can an employee handbook and other procedures and policies. In some cases, a sales representative may consider his contacts his own. If so, there needs to be a clear understanding of what a representative can and cannot take to a new employer.
Knowledgeable counsel can advise employers on proactive steps to prevent misappropriation of proprietary information and can help both employers and employees defend their legal rights should a problem arise. The experienced attorneys at Longman & Van Grack handle all types of civil litigation and commercial disputesin the Bethesda and Rockville, Maryland area. Contact (301) 291-5027 for legal advice and legal representation today.
