Judge Sullivan found no evidence that former employees misappropriated confidential information or were positioned to unfairly compete, and concluded general knowledge and skills are not protectable. Rocket Mortgage disagrees with the opinion and plans to appeal. Numan said the noncompete provisions are unfair to loan officers trying to make a living and asserted no confidential or past-client information was used. Rocket sued in 2022 after employees joined Swift Home Loans, launched in 2020, which initially partnered with Rocket Pro then later signed with UWM. Rocket had sought broader restrictions and cited extensive training to justify them.
Numan said he's pleased with the decision, noting that the noncompete provisions in this case are not fair to the loan officers, because at the end of the day, they're just trying to make a living for themselves and their families. They should be allowed to make a living and not be handcuffed just because Rocket doesn't want someone to be a broker, Numan said in an interview. There's no confidential information being used or taken, nor any past client information, in this case.
But after extensive discovery, Rocket did not allege any violations of these clauses, he added. The judge also found no evidence the former employees were positioned to unfairly compete. Unfair competition resulting from misappropriation of confidential information can be a protectable interest, Sullivan wrote. But an unfair advantage cannot be based on an employee's use of general knowledge or skill which is learned or gained in working for any employer. Such action is not protectable.
Collection
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