Gallagher Benefit Services, Inc. v. De La Torre

MEMORANDUM *

James De La Torre (“De La Torre”) and his current employer, Andreini & Company (“Andreini”), appeal from the district court’s grant of a preliminary injunction barring De La Torre and Andreini from soliciting, placing, or accepting business from ten prospective or current clients of De La Torre’s former employer, Gallagher Benefit Services, Inc. (“Gallagher”). We affirm the injunction in part, and vacate and remand in part.

We may reverse the grant of a preliminary injunction only when the court abused its discretion, or based its decision on an erroneous legal standard or clearly erroneous findings of fact. Stuhlbarg Int’l Sales Co., Inc. v. John D. Brush & Co., Inc., 240 F.3d 832, 839 (9th Cir.2001). The party moving for a preliminary injunction must show either (1) a combination of probable success on the merits and the possibility of irreparable injury, or (2) that serious questions are raised and the balance of hardships tips sharply in favor of the movant. Id. at 839-40 . Here, the court evaluated Gallagher’s motion for a preliminary injunction under the first prong.

The district court based its order on Gallagher’s claims of trade secret misappropriation and…