Trade secrets: Think your business is too small?

West Virginia Business Litigation Blog reported on May 16 about a Connecticut case. Smaller mortgage company gets allegedly raided by larger company for employees and trade secrets.

Charter Oak Lending Group, LLC of Danbury, Connecticut alleges that CTX Mortgage Company induced several of its employees to leave and to take confidential proprietary information with them. As a result, besides the loss of employees and information, Charter Oak lost about 150 pending loans, which represented $1 million in fees. Charter Oak alleges that its business was decimated in a matter of weeks due to the departures and losses.

West Virginia Business Litigation Blog spoke with Charter Oak's president and reports on the conversation. I think this part of the conversation is pertinent and educational:

She also told me that CTX has since closed its Danbury office, which it had staffed with the employees raided from Charter Oak. Ms. Killian said her company has never rebounded from the effects of the defections, but remains in business, and she is committed to seeing the lawsuit through to its conclusion.

Still thinking that trade secrets could never apply to your business? Then ask yourself how well your business could survive an event like what happened to Charter Oak.