ATMEL CORP. V. VITESSE SEMICONDUCTOR CORP. 30 P. 3d 789 (2001) CASE BRIEF

ATMEL CORP. V. VITESSE SEMICONDUCTOR CORP.

30 P. 3d 789 (2001)

NATURE OF THE CASE: Vitesse (Ds) appealed from an order granting Atmel (P) a preliminary injunction and denying arbitration.

FACTS: P is a semiconductor company with a manufacturing facility in Colorado Springs. It employs over two-thirds of the semiconductor labor force in that area. D, also a semiconductor company, recently built a manufacturing facility and began to hire employees. Many of its new employees had worked at P, including Ds. P and D make different products but they do compete for employees in an extremely tight labor market. When Jenkins, and Alejo were hired at P, they were required to sign an employment agreement that contained a 'non-solicitation clause' pertaining to Pl employees. At D, they assisted in D's efforts to hire qualified employees. P sued D for raiding its work force. The trial court entered a TRO that prohibited the individual defendants from using P's 'confidential information' and from soliciting, recruiting, or attempting to persuade P's current employees to leave their employment. The trial court granted P a preliminary injunction that was to remain in effect until March 5, 1999. The individual defendants could not solicit P employees, screen resumes, conduct interviews, participate in hiring decisions, or make employment offers. These activities were prohibited even if employees of P first initiated contact. D appealed the injunction. Ds contend that, if the non-solicitation clauses were interpreted correctly they would prohibit only the initiation of contacts with P's employees.

ISSUE:

RULE OF LAW:

HOLDING AND DECISION:

LEGAL ANALYSIS:

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