Mercer Management Consulting, Inc. v. Wilde
United States District Court for the District of Columbia
920 F.Supp. 219 (D.D.C. 1996)
Wilde, Silverman, and Dewhurst (defendants) were vice presidents at a consulting firm that later merged to form Mercer Management Consulting (plaintiff). Their 1990 employment agreements barred competing with Mercer for three years post-employment and required them to discharge their duties "well and faithfully." In 1993, Wilde and Silverman incorporated a competing firm, Dean & Co., while still working at Mercer and attending confidential meetings; none of the three solicited Mercer's clients or performed competing work before resigning. After all three resigned, however, Wilde and Silverman performed work for several Mercer clients and hired two Mercer employees within a year — conduct that violated a separate 1982 non-compete agreement. Mercer sued for breach of fiduciary duty, breach of contract, and tortious interference.
Whether an employee breaches his fiduciary duty to his employer by preparing to compete against the employer while still employed.