RLM Communications, Inc. v. Amy E. Tuschen; eScience and Technology Solutions, Inc.

No. 14-2351
Federal Court
4th Circuit
United States District Court for the Fourth Circuit

Plaintiff RLM Communications, Inc. (“RLM”) is a government contractor that provides cyber security, information technology and information assurance services. Defendant Amy Tuschen (“Tuschen”) worked at RLM for six years. During her time with RLM, Tuschen managed an information assurance contract with the U.S. Government. She resigned from RLM in 2013, roughly one year before the government contract expired, and joined Defendant eScience and Technology Solutions, Inc. (“eScience”) a competing company. While RLM did not initially object to Tuschen’s new job, it took issue with her new employment when it discovered that eScience was bidding against it on a government contract. The contract at issue was similar to the one Tuschen managed at RLM.

RLM filed suit in North Carolina state court against Tuschen and eScience (collectively “defendants”) seeking a temporary restraining order and asserting multiple claims, including unfair and deceptive trade practices, misappropriation of trade secrets, and several other breach of contract claims. After the state court granted the temporary restraining order, defendants removed the case to federal court and moved to for summary judgment. The district court granted defendants’ motion on all claims and denied RLM’s motion for a permanent injunction.

On appeal, the United States Court of Appeals for the Fourth Circuit affirmed the district court’s decision. First, the Fourth Circuit rejected RLM’s claim that Tuschen violated her noncompete agreement, which was a part of her employment contract. The court found that the noncompete agreement was invalid because it prohibited direct and indirect participation in similar businesses, and was therefore overly broad. Second, the court stated that RLM failed to provide sufficient evidence that Tuschen breached her confidentiality agreement with the company. Similarly, the court rejected RLM’s misappropriation-of-trade-secrets claim because it admittedly gave Tuschen access to its trade secrets, and does not establish that she accessed them without its authorization. The court also affirmed the district court’s decision with respect to the remaining breach of contract and tort claims.

INC., RLM Communications
Amy E. Tuschen, eScience and Technology Solutions
Common Law (Restatement), Other state statute