Physiotherapy Associates Inc v. Deloach

Physiotherapy Associates Inc, a provider of physical therapy services, filed a lawsuit against its former employee Deloach in the United States District Court for the Northern District of Georgia. Deloach had signed employment agreements containing non-compete, non-solicitation, and confidentiality clauses. After resigning, Deloach began working for a direct competitor and allegedly solicited PTA's patients and used its confidential information. PTA sought emergency relief. On September 17, 2018, the court issued a temporary restraining order prohibiting Deloach from engaging in competitive activities, soliciting clients or employees, and using or disclosing PTA's trade secrets pending a preliminary injunction hearing. The case highlighted the tension between protecting business interests and an individual's right to work.

The court granted Plaintiff's motion for a temporary restraining order, imposing immediate restrictions on Defendant's competitive activities to prevent irreparable harm until a full hearing on the preliminary injunction could be held.

Whether the restrictive covenants in the employment agreement were enforceable, and whether the defendant breached those covenants by working for a competitor and soliciting former clients.

The case serves as a precedent for employers seeking swift judicial intervention to enforce non-compete and confidentiality agreements against former employees in the healthcare and professional services sectors. It underscores the importance of well-drafted restrictive covenants and the courts' willingness to grant temporary equitable relief to preserve the status quo.