WorldVentures, a travel membership company, secured a preliminary injunction on April 6th against its former executive, Kenneth E. Head. The order prevents Head from participating in Seacret Direct's newly launched travel platform, alleging breach of his prior employment contract.
The injunction specifically prohibits Head, recently appointed President of Seacret Direct, from any involvement with the competing company's travel platform. The court's order accepted WorldVentures' argument that Head, after resigning via email on December 31, 2020, took a senior position with Seacret Direct, LLC.
Seacret qualifies as a "Competing Business" under Head's WorldVentures employment agreement. The court found WorldVentures has a substantial likelihood of success in showing Head breached Paragraph 3.02(e) of that agreement through his employment in a senior role with a competitor.
Head's submitted declarations asserted his transition to Seacret Direct was, at the time, part of WorldVentures' corporate plans. The court disagreed, holding Head to his WorldVentures contract. A separate Confidentiality and Proprietary Rights Agreement between Head and WorldVentures did not supersede the terms of the employment agreement.
The court determined WorldVentures would likely sustain immediate and irreparable harm due to Head's breaches of his employment agreement's non-compete restrictions. This harm would impact WorldVentures' business, membership-based travel operations, employees, customers, members, and sales representatives. Any potential harm to Head at this stage was deemed outweighed by the imminent and irreparable damage to WorldVentures.
Pending the resolution of WorldVentures' case against Head, he is prohibited from participating, either directly or through an affiliate, in any competing business, including Seacret's travel activities. Head cannot engage in activities related to WorldVentures' current business.
To ensure compliance with the order, Head's counsel must notify WorldVentures' counsel in writing regarding any marketing activity Head intends to undertake for Seacret. Head must receive written approval from WorldVentures before engaging in any such activity, with WorldVentures required to respond within three business days of notice.
Head remains free to assist Seacret Direct in marketing its non-travel products. The lawsuit against Head is scheduled for a four-day trial beginning June 28th.
