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Company Entitled to Nominal Damages for Former Employee’s NDA Breach

January 6, 2022


Asoftware developer breached a nondisclosure agreement (NDA) with his former employer by using confidential information to develop a product he sold to a third party. However, the employer did not show that it was harmed by the employee’s misuse of the information, so it was not entitled to a $10,000 jury award, a California appeals court ruled. Instead, the former employer was entitled only to nominal damages.

The employee worked for his former employer from 2005 to 2011. His duties included building labor compliance program (LCP) software and adding new features as its client base expanded. LCP software helps to automate reporting, monitoring and compliance with federal and state-specific prevailing wage laws for public works projects.

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