Capsicum Group, LLC v. Rosenthal

Capsicum Group, LLC – a legal services consulting group – brought this action against against two former employees and a competitor – “SSR” – to prevent those employees from working for SSR . Capsicum relied on a restrictive covenant entered into by the two employees which restricted their ability to compete with Capsicum for a period of two years following the end of their employment relationship. Believing that certain provisions of this covenant were unenforceable, SSR nevertheless hired the two employees. The Hon. William H. Yohn, Jr., U.S.D.J. held that SSR did not possess the requisite mens rea but nevertheless enforced certain provisions of the covenant.

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