Question
Scherer Design Group, LLC (SDG), provides telecommunications services. Chad Schwartz, an SDG employee, sought to obtain an ownership stake in the firm. When this proved
Scherer Design Group, LLC (SDG), provides telecommunications services. Chad Schwartz, an SDG employee, sought to obtain an ownership stake in the firm. When this proved unsuccessful, Schwartz quit to start a competing firm, Ahead Engineering, LLC, and recruited Dan- iel Hernandez, an SDG colleague, to join him. Hernandez used an SDG computer to transmit his employers client information to Schwartzs firm via Facebook. One of SDGs largest clients, ExteNet, left SDG to become Schwartzs client. After Hernan- dez resigned, SDG used his company laptop to surreptitiously (secretively) access his Facebook account, which revealed the actions Hernandez had taken to secure SDGs client informa- tion and trade secrets. SDG filed a suit in a federal district court against Schwartzs firm and Hernandez, claiming a breach of the duty of loyalty and seeking an injunction to stop their solicitation of SDGs clients. The defendants argued that SDGs hacking of Hernandezs Facebook account barred the plaintiffs right to injunctive relief (under the equitable doctrine of unclean hands). [Scherer Design Group, LLC v. Ahead Engineering, LLC, 764 Fed.Appx. 147 (3d Cir. 2019)] (See Employee Privacy Rights.)
(A) Should SDGs use of a company laptop to access Hernan- dezs Facebook account bar SDGs right to an injunction? Explain.
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