MORGAN STANLEY DW, INC. V. FRISBY 163 F.Supp.2d 1371 (2001) CASE BRIEF

MORGAN STANLEY DW, INC. V. FRISBY

163 F.Supp.2d 1371 (2001)

NATURE OF THE CASE: Morgan Stanley (P), former employer sought a temporary restraining order against Frisby and Lovell (D) former employees for allegedly violating a non-solicitation agreement.

FACTS: P hired Ds as brokers in one of its Atlanta, Georgia offices. Ds signed employment agreements that included a non-solicitation covenant providing that the Ds would not, for one year after their termination or resignation from P, solicit those clients within a 100-mile radius of their north Atlanta office whom they serviced or learned about while employed by P. Ds resigned to go to PaineWebber. P sued and sought a temporary restraining order. P discovered that: (1) the phone numbers of many of the P clients whom D had serviced during their employment were now incorrect in P's computer database; (2) immediately after leaving P, the Ds began a swift and methodical effort to solicit, by overnight mailings, the customers with whom they did business while at P; (3) over 30 P customers with whom Ds had dealings while employed by P have contacted P to terminate their brokerage relationship and transfer their accounts to Ds at PaineWebber; and (4) Ds' efforts at solicitation have included financial incentives to P clients such as Paine Webber's agreement to pay all costs of transfer and/or reduced commissions. P initiated arbitration proceedings available to it under the NASD Code, and it requested that the Court restrain Ds from continuing their unlawful solicitations.

ISSUE:

RULE OF LAW:

HOLDING AND DECISION:

LEGAL ANALYSIS:

Get free access to the entire content for Mac, PC or Online

for 2-3 days and free samples of all kinds of products.

https://bsmsphd.com

© 2007-2016 Abn Study Partner