Hollingsworth Solderless Terminal Co., a Corporation v. William Turley, an Individual and Hoffman Electronics Corporation, a Corporation

This diversity action principally concerns the circumstances in which California law permits a salesman who leaves his employer to solicit the employer’s customers by using various kinds of information acquired in his first position. Plaintiff-appellant Hollingsworth Solderless Terminal Company competes, in California and nationwide, with defendant-appellee Hoffman Electronics Corporation. Hoffman hired a former Hollingsworth salesman to work for it, and Hollingsworth then sued both Hoffman and the salesman, defendant-appellee William Turley. After some discovery, all parties filed for summary judgment and Hollingsworth moved for a preliminary injunction. The trial court ruled against Hollingsworth on all aspects of the case, and Hollingsworth now appeals.

We affirm portions of the district court’s judgment, but we also hold that summary judgment should not have been granted as to most aspects of the action. We therefore remand these claims for further proceedings. Finally, we vacate the court’s denial of plaintiff’s motion for a preliminary injunction and remand for reconsideration in light of the principles discussed in this opinion.

Facts

We state the facts most favorably to…