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Note: Pursuant to an employment and separation agreement, Covidien LP and Covidien Holding Inc. (Employer) sued Brady Esch (Former Employee) for various remedies including a preliminary injunction to prevent disclosure of confidential information relating to a patent application. The United States District Court for the District of Massachusetts, Gorton, J., granted the preliminary injunction against Former Employee and ordered Employer to post a USD 312,000 security bond in the event of damage due to the wrongful entry of the injunction.

Employer moved for permission to substitute a standby letter of credit for the security bond. The Judge denied this motion, stating that “although other district courts may have allowed plaintiffs to satisfy Fed. R. Civ. P. 65(c) with a letter of credit, in the absence of controlling authority to that effect this Court will decline to do so.” The Judge ordered that Employer “shall post a security bond [USD 312,000] as soon as reasonably practicable whereupon this injunction shall be deemed in full force and effect.”

[KCM/ARB/ACA]

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