Kerr’s employment ended during an Augmeeting at which Kerr “was permitted to resign.” Shortly before the Augmeeting, Kerr printed confidential client reports. The Kerr opinion provides a useful primer for financial firms seeking to enforce post-employment restrictive covenants.įrom 1998 – 2019, Kerr was employed by Edward Jones. Although Kerr did not challenge the validity of the confidentiality and non-solicitation provisions, the court denied Edward Jones’ request for a temporary restraining order (“TRO”) because it found that RRs who change firms have a duty to notify clients of material changes to their accounts, which includes changes of employment. Edward Jones sued Kerr, a former RR, to enforce an employment contract that required him to return confidential information upon termination and prohibited him from “directly or indirectly” soliciting any Edward Jones’ client for a period of one year. ![]() 14, 2019), illustrates the unique challenges that broker-dealers may face when enforcing post-employment covenants that prohibit former registered representatives (“RRs”) from soliciting clients.
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