First Western Capital Management Co. v. Malamed
United States Court of Appeals for the Tenth Circuit
874 F.3d 1136 (2017)

- Written by Rich Walter, JD
Facts
First Western Capital Management Co. (First Western) (plaintiff) sued its former employee, Kenneth Malamed (defendant), for trade-secret misappropriation in violation of the federal Defend Trade Secrets Act of 2016 (DTSA) and the Colorado Uniform Trade Secrets Act (CUTSA). First Western moved for a preliminary injunction against Malamed. The federal district court concluded that First Western could not prove that it would suffer irreparable harm in the absence of such an injunction because monetary damages could compensate Federal Western for any misappropriation that took place. The court also concluded, based on then-controlling precedent, that because both the DTSA and the CUTSA authorized preliminary injunctive relief, the court could simply presume irreparable harm from Malamed’s alleged violation of those statutes. The court issued its injunction, and Malamed appealed to the Tenth Circuit. The appellate court noted that, three weeks after the district court’s ruling, the United States Supreme Court narrowed the precedent on which that ruling was based.
Rule of Law
Issue
Holding and Reasoning (Matheson, J.)
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