Legal Recruiting Firm Sues Former Employee, Citing Non-Compete Clause

A legal recruiting firm has accused one of its former account executives of violating the firm's non-compete clause in their employment agreement.

The Arlington, Va.-based company The McCormick Group filed a suit against Ed Lee, founding principal of Whitehaven Strategies, in the Circuit Court for Arlington County on June 7. The firm is seeking damages of $100,000 and an injunction against Lee to enforce his employment agreement.

According to the complaint, Lee's employment agreement, which he signed when he started at McCormick in January 2006, does not allow him to "engage in competitive activities against The McCormick Group within his law and government affairs specialty field for twelve (12) months and restricts his ability to engage in competitive activities with a competing executive search firm within 100 miles of The McCormick Group's office for a period of six (6) months."

The firm claims that the limitations were a consideration when hiring Lee. On March 14, Lee resigned from McCormick to strike out on his own. The complaint said Lee subsequently solicited former clients he had worked with while at McCormick.

According to a news release on McCormick's website, Lee received the Account Executive of the Year Award from the firm in October. "Ed not only led the office for the year but established a new single year revenue record for the McCormick Group," the release said.

Representing McCormick are Tyson's Corner, Va.-based Venable partners William D. Dolan III and Michael Robinson. Neither Dolan nor Robinson responded to a request for comment.

Lee, who is representing himself, filed a motion to dismiss June 11. In it, Lee does not dispute the binding relevance of the non-compete clause, but instead points to two recent Virginia Supreme Court cases that outlawed overly broad non-compete clauses.

"While Plaintiff's wording is not exactly identical, the intent and plain language meanings are identical," Lee wrote in his motion. "Wherefore, in light of Plaintiff's non-compete clause having the exact intent and plain language meaning as those struck-down in Shaffer and Simmons, the Defendant respectfully requests the Court to sustain this demurrer and grant Defendant's motion to dismiss."

"It's an unfortunate lawsuit, one I believe is based on desire to stifle a new competitor," Lee said in a statement to Legal Times. "I've had to dust off my trial skills as a former Marine Corps JAG Captain and look forward to trial."

Comments

[Frank Jerich]

I also served on active-duty in the United States Marine Corps with Ed Lee and must emphatically state he is a remarkably outstanding individual of the highest moral character and personal integrity. The McCormick Group should be ashamed of themselves for this ill-conceived attempt to bar Mr. Lee from making a living, especially considering the fact he made a lot of money for the McCormick Group over the years as one of, if not, their most productive employee.

[Former TMG Recruiter]

Alan or whatever your real name is.

I used to work at McCormick Group and can simply state Mr. Lee was a true professional who generated almost 100% of his own projects.

If his non-compete is the same as mine, then I and my attorney highly doubt it's valid in VA.

[Matthew Huisman]

Posters,

I would ask that we refrain from personal attacks on character and keep the discussion focused on the relevant facts of the case. Thank you.

[Alan Thornberg]

I'm sure the client you refer to was introduced to you while you were working at McCormick, so I guess you feel that doing the right (and legal) thing with one client mitigates your breach of contract with McCormick. I serously doubt your covenant not to compete contained a clause stating that if you only stole SOME of McCormick's clients (that you met while on McCormick's payroll) but maybe not all of them, then attempting to steal other clients from McCormick is somehow justified. You are breaking your promise made by you to McCormick as a specific condition for them agreeing to employ you. I know you may be able to find some legal loophole to excuse your actions, but nothing can excuse the moral issue of breaking your word. I hope you never need to find employment elsewhere because your word is not going to be worth much in the future. Sorry, you may be a nice guy, but you are really wrong on this issue.

[Ed Lee]

I agree with Mr. Kolomjec, I'm not dishonest, just ask my parole officer and my bookie.

Seriously, Alan you need to look at the law and know the facts before you open you mouth. In regards to stealing any business, McCormick Group just made a placement of $75k from a candidate I recruited to them and professionally handed off to them.

[Alan Thornberg]

Lee signed a restrictive covenant and he knew the terms were a condition of employment at McCormick. He used McCormick's training to learn their business and then quit, breaking his promise not to compete, and stole whatever business he could from his former employer. He is patently dishonest and being a former Marine is no excuse.

[Christopher Kolomjec]

Ed Lee is an outstanding individual. I served with him over 15 years ago when we were active duty. This is another example of corporate greed and oppression. I stand with my brother Marine and am sure all vets will do the same. Shame on McCormick!