Metro Traffic Control, Inc. v. Shadow Traffic Network

Good Law
1994 Cal. App. LEXIS 137·22 Cal. App. 4th 853·27 Cal. Rptr. 2d 573·94 Daily Journal DAR 2107·30 U.S.P.Q. 2d (BNA) 1684
Court of Appeal of CaliforniaFebruary 17, 1994B064697California4,020 words

Opinion

Opinion

Vogel, J.

—Metro Traffic Control, Inc., appeals (Code Civ. Proc., § 904.1, subd. (f)) from an order denying its request for a preliminary injunction to restrain respondent Shadow Traffic Network from soliciting Metro’s employees to violate the noncompete and trade secret clauses of their employment contracts. We affirm and hold that the clauses are unenforceable absent evidence that Metro possesses a protectible trade secret.

Factual Background

Metro is engaged in the traffic reporting business, contracting with radio stations to gather and broadcast local traffic information to stations’ audiences. In 1990, Metro had a one-year written contract with radio station KFWB to provide traffic reporting services for the Los Angeles area. Unless renewed, the contract terminated on December 13, 1991. The contract includes an acknowledgment by KFWB that Metro’s employees have agreed in writing to treat all traffic gathering and reporting procedures as confidential trade secrets of Metro and to not compete with Metro in the traffic reporting business during their employment and for one year following their termination.

In September, KFWB notified Metro it might not renew their contract…

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