U.S. Judge Lifts Hiring Ban in Positron Case

A federal judge in Santa Ana on Monday lifted an injunction that had prevented a Riverside County firm from hiring five Canadians, thus ending for now a debate over a company’s right to restrict the movements of former employees suspected of industrial espionage.

By lifting her order, U.S. District Judge Alicemarie Stotler cancelled part of an injunction she issued April 4 and gave Temecula-based Plant Equipment Inc. the right to hire five engineers who were formerly employed by the Montreal-based Positron Inc.

The action is the latest chapter in an unusual legal dispute that began late last year when Plant Equipment tried to hire the five engineers and one Positron salesman. Plant Equipment President John Fuller says he wants to hire the engineers because they have the experience needed to rapidly develop new equipment for 911 emergency telephone lines. However, Positron President Reginald Weiser has accused Fuller and the six former employees of conspiring to steal his company’s trade secrets.

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The alleged secrets involve the design features in specialized emergency telephone line equipment that allows a caller to be traced even if she or he cannot speak. Armed with an alleged “smoking gun letter” written by one of the former employees--evidence of a conspiracy, according to Weiser--and buoyed by a temporary Canadian court ruling that barred the six from working in the industry, Positron also sought and obtained an unusual U.S. court injunction: an order prohibiting Plant Equipment from hiring the Canadians. Judge Stotler also prohibited Plant Equipment from using any Positron trade secrets.

Plant Equipment’s lawyers, who had contested Positron’s claims, later asked Judge Stotler to modify that ruling after a Canadian court completed its review of the case. The Quebec court maintained its own prohibition on stealing Positron secrets, but removed restrictions barring the six from the industry.