Judge Grants Injunction in Steinberg Suit

Former agent Dunn cannot use trade secrets learned while a partner with Steinberg, Moorad

Los Angeles, August 30, 2001 -- Judge Ronald Lew has issued a preliminary injunction barring agent David Dunn and his newly formed firm, Athletes First, from using trade secrets Dunn learned while a partner in the firm of, Steinberg, Moorad and Dunn.

The injunction precludes Dunn from enticing Leigh Steinberg's clients to switch to Athletes First with the use of such secrets. It does not, however, prohibit Dunn and his company from conducting business, according to a report by the Los Angeles Daily News. Both sides have expressed satisfaction with the decision as directed by the federal judge, after Steinberg's lawyers had presented their case alleging violations of trade secrets, proprietary information and unfair competition.

A Steinberg spokeswoman conveyed feelings of vindication over the decision, which is just a small step in an ongoing legal dispute between the two former business partners after Dunn left the firm in Feb. The attorney for Dunn expressed equal pleasure over the injunction, stating, "My guys are not gangsters. They're sports agents who want to represent clients." He says Steinberg essentially had sought to prevent Dunn from being allowed to continue to pursue clients.

Steinberg, one of the NFL's top player agents for many years, claims in his lawsuit that Dunn has intentionally stolen dozens of his clients, while at the same time, participated in racketeering activities. Dunn's response accuses Steinberg of unethical and unprofessional behavior.[click here for more]

Source : Los Angeles Daily News, August 28, 2001.

David Burkey
E-mail : daveywriter@hotmail.com