Merrill Lynch, Pierce, Fenner & Smith, Inc. v. Stidham
United States Court of Appeals for the Fifth Circuit
658 F.2d 1098 (1981)
- Written by Josh Lee, JD
Facts
Merrill Lynch, Pierce, Fenner & Smith (plaintiff) hired Reese Stidham, Paige Scarborough, and John Bruner (defendants) as securities-account brokers. Stidham, Scarborough, and Bruner were each placed into a six-month training program, which provided the necessary qualifications to obtain licenses as dealers in securities. Stidham, Scarborough, and Bruner also entered into employment agreements stating that all of Merrill Lynch’s records were confidential, including names and addresses of clients, and that no Merrill Lynch clients would be solicited after termination. Later, Stidham, Scarborough, and Bruner agreed to join a new office of another securities firm. Prior to leaving Merrill Lynch, Stidham, Scarborough, and Bruner made copies of various records containing vital sales information, including client names and addresses. Five days after Stidham, Scarborough, and Bruner resigned, Merrill Lynch filed a lawsuit seeking an injunction to prevent the use of its confidential information.
Rule of Law
Issue
Holding and Reasoning (Hill, J.)
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