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Private Medical Services Skirmish Over INS Contract
A Delaware Chancery Court denied a motion to dismiss filed by Prison Health
Services, Inc. The motion sought to dismiss the complaint of Up and Up
Health Services, Inc. Both companies were bidding for a contract to provide
managed health care services to the Immigration and Naturalization Services
(INS). The complaint, stated a Vice President of Up and UP in charge of'
its INS project was recruited by PHS with an offer of double his salary and
a promise of a substantial bonus if UP and UP was awarded the INS contract.
PHS used the Vice President's knowledge of Up and Ups trade secret to bid
the project, which remained ongoing. Up- and Up sought injunctive relief.
Precluding PHS from using its propriety information in furtherance of the
INS bid effort and use of the Vice President with his confidential
information in the effort; also sought was monetary damages for the harm.
The court held that as the bidding process was ongoing, injunctive relief
could be granted to stop the use of the trade secrets, and as monetary
damages alone would not be adequate relief, dismissal was inappropriate.
See: BCE Emergis Corporation v. Prison Health Services, 2001 WL 695538
(Del. Ch. 2001).
Services, Inc. The motion sought to dismiss the complaint of Up and Up
Health Services, Inc. Both companies were bidding for a contract to provide
managed health care services to the Immigration and Naturalization Services
(INS). The complaint, stated a Vice President of Up and UP in charge of'
its INS project was recruited by PHS with an offer of double his salary and
a promise of a substantial bonus if UP and UP was awarded the INS contract.
PHS used the Vice President's knowledge of Up and Ups trade secret to bid
the project, which remained ongoing. Up- and Up sought injunctive relief.
Precluding PHS from using its propriety information in furtherance of the
INS bid effort and use of the Vice President with his confidential
information in the effort; also sought was monetary damages for the harm.
The court held that as the bidding process was ongoing, injunctive relief
could be granted to stop the use of the trade secrets, and as monetary
damages alone would not be adequate relief, dismissal was inappropriate.
See: BCE Emergis Corporation v. Prison Health Services, 2001 WL 695538
(Del. Ch. 2001).
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Related legal case
BCE Emergis Corporation v. Prison Health Services
| Year | 2001 |
|---|---|
| Cite | 2001 WL 695538 (Del. Ch. 2001) |
| Level | State Trial Court |
| Attorney Fees | 0 |
| Damages | 0 |
| Injunction Status | N/A |