Cases: Should have had a noncompete

Stealing your employer’s “generic” business forms to use in your competing business isn’t a problem, according to a new decision by the Sixth Circuit.

In the case, a gourmet food company called Tastefully Simple had hired a consultant named Lori Caruso.  In the course of her work Caruso got various training materials, including a consultant’s manual, order forms, and product return forms.  Caruso subsequently decided to open her own business with her sister-in-law.  She used the TS forms and created a business manual that looked like TS’s.  TS sued.

There was no noncompete clause in Caruso’s hiring agreement, said the court, so no breach of contract claim would lie.  Since the stolen forms were generic or were simply designed to record information, TS had no cause of action against Caruso.

Tastefully Simple, Inc. v. Two Sisters Gourmet, L.L.C., 2005 U.S. App. LEXIS 6095 (6th Cir., 2005).