Execs Refuse To Sign Confidentiality Agreement, Company Argues Conduct Constitutes Consent: RedLPR VS HTS

By Isabella Cheng, Published Nov 04, 2021, 09:52am EDT

If executives refuse to sign confidentiality agreements, can companies effectively force them to abide by them if the executives continue to work at the company? This is a core question in current litigation between HTS and RedLPR.

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In this report, IPVM examines HTS' and RedLPR's positions on whether the ex-HTS employees had confidentiality obligations (implied or otherwise) and the actual agreements signed, including feedback from a co-founder of RedLPR and HTS's counsel.

This is a companion to IPVM's report: HTS LPR Sues Ex-Employees for Allegedly Stealing Trade Secrets, Including "Flux Capacitor".

Fundamental ************ ** *************** ***********

*** *** ****** *** litigating ******* ** *** Sagy **** *** ****** Barker's ********** ********** **** HTS ********* *************** ***********. Although ******'* ******** ** that **** *** ****** had ** *************** *********** to ***, *** ****** this.

***'**** ** ********** ** RedLPR's ****** *** ******* Judgment (***)******:

*. **** *** ******’* employment ********** **** *** contain ** *************** *********** and *** ***** ********* that **** *** ****** retain *** *************** ** any ***********.

***’ ********: ******.*****, **** ****’* *** Barker’s ******** ********** ********** dictate:

**** *********** ** **** employment*** *********** ** *** ******* all *********, ********* *** documents ***** ** *** by *** ******* ** generated ****** **** ********** with *** *******.

Amit *** ******'* ********** ********** ********

**** ****** *** ** 2016, *** ****** ****** in ****. **** ****** very ******* ********** ********** (****'* **** *********;******'* **** *********) **** **** **** hired.

**** ********** ********** ******* a "***********" ******* **** states ********* **** ** returned ***** ***********:

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*******, **** ** *** only ******** ** *** contract ***** ****-*********** *******. There *** ** ******* explicitly ********** ***************.

RedLPR: ** *************** ***********

** * ******, ******'* position ** **** **** and ******'* ********** ********** contained ** *************** ***********. The ******* ******* **** in* ***** ******:

********** ******* **** *** Barker’s ******** ********** ********** contain *************** *********** ****** because **** ******* **** “‘Upon *********** ** **** employment *** ***** ****** to *** ******* *** equipment, ********* *** ********* given ** *** ** the ******* ** ********* during **** ********** **** the *******.’”

*** ********** *********does *** **** *******, *** ********* **** *** ********, *** ************ ***********. Instead, it simply requires departing employees to return “equipment, materials and documents,” presumably for the company’s continued use and to ensure an orderly transition after the employee’s departure.[******** *****]

****** ********** **** *** provision ** *** ********** contract **** ********** **** Amit *** ****** ****** their ********* ***** ***********, but **** ***** *** no ***** *********** "**********."

** ****, *** ****** states **** ******* ** the ********* ** ******* Amit *** ****** **** "publishing ** *** ******** every **** **** ******* while ******* *** ***":

******, ******* ***** *** provision ***** ******** **** and ****** **** ******* copies ** *** ********* returned ** *** ***/** publishing ** *** ******** every **** **** ******* while ******* *** ***.

*******, ****** **** **** when **** **** ***, the ******* ****'* *** for *** ********* **** nor *** *** ******* ask *** ** **** the *********** ************:

** *** ****** ***** is *** ********* ** the *********, *** ***** is ****, ***’* ****** of ******* ******* *** such *********.When **** **** ***, *** *** *** **** ****** ********** **** **** ****** *** *********, ********* ** *********, **** **** **** ** ******* ** ********* ******* *** ************ *********. [******** *****]

**** ******* **** **** that *** ****** ********* to ******* *** ***** Amit ******** ** ******* exchanging *** *** ********* Amit ***** ********* *** the ************ **** *** owed ** ****, *** HTS *** *** *******:

**** * ********, ** lawyer ******* *** ** them *** ****, ** you *** ***** ** pay ** ******, *** the ********** *****, *** 401k *****, *** *** health **** ************, **'** interested ** ******* *** conferring *** ********* *** the ****** *** **********. They *** *** ******* to ****.

*** *********, **** **** and ****** ************ ***************

*** *********,*********** ***** ******* *** HTS, **** *** ****** "received ********* *** ***** materials ************* ********** ** confidential" *** "************ ***** *************** *********** in ************** **** **** other *** **** ***** parties":

*** *******, **** *** Barker ********* ******** ********* prominently ********** ** “************” such ** ***’ “**** Core ***** **** *** 12 ****” *********** (*** “HTS *********”). *********, ** correspondence **** ******* *********, Amit **** ******** *** pricing *********** *********** ********** as “*** ******** *** Only” *** “************.”

***' *******,***** *******, **** ****:

**** *** ******’* ******** employment ********** **** ****** and ******** *************** ***********.

********** ***** **********, **** and ****** **** *** received **** ******** *** documents *** ************** **** and ***** *** ********* explicitly ********** ‘************.’ **** were ******** ** ************** and ************ ********* ***** various “***” **********. ** sum, **** *** ****** were **** ***** **** HTS ********** **** ** its ******** ********* *** business *********** ** ** confidential.

************, **** *** ****** now ***** ** ** free ** ** ** they ****** **** ***’ confidential ***********, ********* ********** it ** *** ********. This ********* ********* ** contrary ** *** ***, as ************** *. * (**: the ********** ** ******** confidentiality ** ************ *********** obtained ****** **********, ************ ******* *************** *********).

** ** ******* ******* acknowledgment ** ****** ****** explicitly ******* *** *** signed *************** *******. ** HTS *** ****** ************* disagree ** *** *****, the ***** **** **** to ****** ***** ************** is ******* ***** ** evidence **** *********.

2018 ********** ********* ******** ******** *************** ******

*** **** ********** * newer **** ********** ********* as * ****** *** Amit *** ****** ****** be ******** ** *************** obligations. **** **** ********* was ********* ********* ** Amit *** *********** *** *** ******** earlier **** ****,*** ****:

** ***** **** *** forwarded ******* ********** ********* to **** *** ******, including ** “*** *** Inc. ******** *********” (*** “2018 ******** *********”) *** “HTS *** ***. ******** Handbook” (*** “******** ********”).

******** ********** ************* ******* ** ******** "confidential ***********" *******, ****** the ****/**** ********** **** did *** ********** ******* "confidentiality.":

2. ************ ***********.

*.******* ***********. * ***** ** all ***** ****** *** term ** ** ********** and **********, ** **** in ********* **********, *** not ** ***, ****** for *** ********* ******* of *** *******, ** to ******** ** *** person, **** ** ****** without ******* ************* ** an ********** ******* (***** than ******), *** ************ Information ** *** *******....

Amit *** ****** ******* ** **** **** *********

******** *** **** ********* does ********** **** * confidentiality *********, ******* **** nor ****** ****** *** 2018 *********. **** *** continue ** **** ** HTS *** ~* ****** after **** **** **** aware ** **** **** agreement.

********* * ******* ******* HTS** ********* **** ***** he **** *** ******* alleging *** **** *** $130,000+ ** ****** *********** and ***(*) *** ****** benefits. **** ******* *** ultimately******************* ** ***** ****, ********** **** **** ************* **** *** ****** actively ******* ** **** the **** ********* ******* they **** ******* **** the *********'* *****.

************ ** *** ******** ***** ** **** to**** **********, *** *** ** HTS, *** ******** **** the **** *********, ********* compensation ****** *** ************ questions:

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*** ****** ********:

*** ***** ***** ***** that ** ***** *** sign *** ******** ********** Agreement ****** *** *****: (i) ** ******* ********** its *****; *** (**) HTS ******** ******* ****** regarding *** “************ *****,” including ****** ******* ** HTS’ ******* ** *** my **** *********** *** various ***** ****** ********** in ***** *-* ** that *****.

*******, *** ****** ******* that **** *** ****** continued ** "**** *****" that **** ***** *** consider ******* *** **** agreement ***** *** *** issues ** *** ***** email **** ********:

***** ****** **** **** email, ****** *** * had ******** ************* **** Lustgarten *** ****** ********* these ******. ****** ***** communications, ****** *** * continued ** **** ***** to ********** *** ****** thatwe ***** *** ******** ******* *** ******** ********** ********* ***** *** ****** ********** ** *** ***** **** ********* ** *** ************ and we further discussed the terms of the Proposed Employment Agreement. In ******** ** *** ********, ********** *** ****** *********** ** ** **** ***** *** ** **** ** **** *** ******** ********** ********* ***** *** ** ***** ****** **** ******** and until we have had a chance to otherwise discuss and address any and all other issues with the Proposed Employment Agreement. [emphasis added]

****, *** **-******* ** RedLPR, ********** ** **** that **, *** *** other *** ********* ** the ****, ******** ******* to **** *** **** agreement ******* ** *** subpar *****:

The **** ** ** ******** ******* ** **** ** ******* ** *** ******** ** ** ** ****'* ***** **, like the year non-compete, giving them the authority to go through our personal phones and personal computers. The four employees in the US got together and we talked about it and said **'** *** ******* ** **** ** ** **. We tried to get together with the new management team and get them to have a discussion about it, and we could never pin them down. For the eight months that the company was managed by Teamtronics, we couldn't have a conversation about it, then that's why I resigned and then Jeremy resigned. [emphasis added]

HTS: ******* *************** ***********

******** **** *** ****** did *** **** *** 2018 ********** *********,*** ********** **** *** ******'* actions "********** **********" ** the *** ***** *** of *** **** ******** agreement:

****, **** *** ****** received *** **** ******** Agreement *** *** ******** Handbook, ************ ******* ** these *********, ********* ******* employment *********, *** **** continued ******* *** *** for *********** ******* ** time. **** ******* “*********** [Amit’s *** ******’*] **********” of ***’ *****.**. *** *************** *********** contained ** *** **** Employee ********* *** *** Employee ******** *** **** binding ** **** *** Barker.

***' ****** ********** **** *** ****** both ********* *** ********* their *-* *** *-* documents ** ***. *-* and *-* ***** *** typical ********** ***** **** US ********* **** *** when **** ***** * new ***. *** *-* form ******** *** ******** and ********** ************* ** individuals ***** ** *** US. *** *-* ** a *** **** ********* fill *** ** *** employers **** *** **** tax ** ******** **** their *********.

***' ******* ********* ** IPVM **** "**** *** Barker ... ********* *** forms":

**** *** ****** **** HTS ********* ***** **** and ****, ************. **** Quest ********* ******** *** in ***** ****, *** HTS ********* (********* **** and ******) **** ******** a ******* ** ‘**********’ documents. ***** ********* ******** standard ******** ************ + tax ***** *** ** updated ******** ********* *** employee ********. **** ***’ other *********, **** *** Barker ************ ********* ***** documents *** ********* *** forms. **** **** ********* working *** *** *** 5 *** * ******, respectively.

*******, ** ** *****, neither **** *** ****** signed *** **** ********** agreement.

HTS ***** ***** **** ***

*** ****** **** ************* *. ****** ******, ******** **** ******'* "brazen ********" ** "****** inconsistent **** *** ***." The **** ******** * Wall ****** ******* ********** advice ****** ****** *** gave ************ *********** ***** to *** ******'* *********** to * ***********. *** stockbroker **** ****** *** sold ****** ***** **** information **** *** *** unknown ** *** ****** and ***** *** ******* with *** *** ******.

*** ***** *** *****'* recognition **** "**** ** the ******* ** * written ********, ** ******** has * ********* ********** to ******* ************ *********** obtained ****** *** ****** of *** **********." ** the **** ****,***** *. ****** ******, *** ***** ********* wrote **** "*** ** those ***********, **** ********** by *** ****** *** even ** *** ******* of * ******* ********** agreement, ** *** **** to ******* ************ ** "classified" ***********."

*******, ***** ** *** question **** ** ******* a ********* ************ ******* between *** *** **** and ******. * **** case****** ******** *********, ***. v. *********, ***.****:

***** ** ********* **** not ******** * ********* for * ********* ************, courts ********* ** *** impute ***. ******** **** an ********'* **** ******** accessing ** ******** ************ information ** ************ ** its *** ** ****** a ********* ************.

*** ***** **** ********** decide ***** ***** ** right *** ** ****** project ****.

Case ********* ** *********

*** **** ** ********* in *********. **** **** continue ** ***** *** progress *** **** ****** on *** ************ ***********.

Comments (4)

*** ******* *** ***** by ***************. * **** heard **** ***** **** non ******** *** **** difficult ** ******* ******, regardless * ***** ** will ** **** **** to ***** **** *** simple *********** ****** *********** a *** *******, *** not * ******

Agree: 1
Disagree
Informative
Unhelpful
Funny

***' ******* ********* ** IPVM **** "**** *** Barker ... ********* *** forms"

*** ******* ********* ** ignore ******** ****** ** **** Vs. ******** ******, *** *** of *********** ** *** time ***** ** ***** our **** ** **** a ************* ***** (*** 2018) ******** ** **** of ****:"Defendants *** ***, ***., **** ********** *** ******** ******'* ****** ** ****** *********** ** ******. *********

***:

"********* ****** **** ******************* ******* ** **** prior ** ******* *** agreement, *** *** ** for *** ******. "** brought ********* ****** *** continued *** ********** ** the **** ******** ** occupied **** *** *********** company *** ** *********** period ** ****..." (****** decl., ¶*.) *********, ****** plaintiff ********* ** ****, at **** ***** ** an ********* ******* ** continued ** **** ***** the **** ******** ********* with *** ****** ********.This ** ********** ** *** ** *** ********'* ******* ** **** *** ********* *********** ** ******** **** and the continued negotiations over the terms of his employment."

Agree
Disagree
Informative
Unhelpful
Funny
Agree
Disagree
Informative
Unhelpful
Funny

“****** **** ************ ** forgot, *** ***** ******* to ****?”

Agree
Disagree
Informative
Unhelpful
Funny
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