Oppression Plaintiff Obtains Injunctive Relief

Recent New York Decision Grants Injunction Pending Litigation of Oppression Claims

In a recently issued opinion in Feinberg v. Silverberg, 2011 NY Slip Op 32299 (Nassau Co. 2011), Nassau County Supreme Court granted injunctive relief preventing Defendant from continuing oppressive acts. The case strongly supports the proposition that when an oppressed shareholder stands to lose his stake in control and management of a corporation, money damages are not sufficient compensation and an injunction provides greater equity as relief.

L&E is a closely held corporation founded by Feinberg, Plaintiff, and Silverberg, Defendant, who are both 50% shareholders. Feinberg is the President and Treasurer; Silverberg is the Vice President and Secretary. Victor Hecht, another named Defendant, is the Chief Financial Officer of L&E, and Brian Barney is an employee with responsibilities involving the business of L&E in Asia.

Case Law Update: Trade Secret Confidentiality Outside the UTSA Context

Because trade secrets often have to be disclosed in connection to a litigation, it is extremely important to take the necessary precautions to prevent them from losing any chance of protection.

As an illistration of this point, last week, the Court of Appeals of California, Second Appellate District, Division Seven, rejected Respondents’ argument that court records from a 1998 California case should remain under seal because they contained documents relating to trade secrets.

In relevant part, the Court held:

Trade Secrets and Intellectual Property Rights. Courts have recognized trade secrets as a potential overriding interest for restricting public access to information. (In re Providian Credit Card Cases (2002) 96 Cal.App.4th 292.) However, a trade secret does not in itself require confidentiality as required by law unless the action is initiated pursuant to the Uniform Trade Secret Act. (Id. at p. 288.)