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Oct. 25, 2023

Eric R. McDonough

See more on Eric R. McDonough

Vedder Price

Eric R. McDonough is a shareholder at Vedder Price and specializes in trade secrets litigation, restrictive covenant claims, technology disputes and unfair competition disputes.

He recently represented the defendant in a case involving breach of contract, false advertising, trade secret misappropriation, trademark infringement and unfair competition claims involving former business partners in the "hypercar" industry. Orion Bailey, LLC v. Orion Aeromotive Company, LLC , 30-2021-1238236-CU-BC-CJC (Orange Sup. Ct., filed Dec. 27, 2021).

The plaintiff alleged that the defendants had misappropriated trademarks and trade secrets related to technology integrating a personal jetpack into a car. The defendants vehemently denied the allegations, and after extensive discovery and settlement discussions, the case was resolved on the eve of trial during the third mediation session.

In another matter, the plaintiff, Central Engineering and Energy, accused its former employee, Jack DiGiacomo, of stealing confidential information, committing fraud, breaching his contract, and interfering with its customers upon joining Lockheed Martin's energy division. Central Engineering and Energy v. Jack DiGiacomo and Lockheed Martin Corporation , S-150-CV-268447-SPC (Kern Sup. Ct., filed

The defendants vigorously contested these claims, which led to years of litigation, including numerous depositions, extensive document production and motions. Eventually, the case was resolved before trial. McDonough pointed out that Central Engineering was unable to provide any evidence of wrongdoing by Jack DiGiacomo or Lockheed.

These cases were significant due to their involvement in the unique and high-end hypercar industry, making the definition of trade secrets and proprietary information a complex task. McDonough emphasized the challenges of defining trade secrets, which will remain a significant issue in trade secrets litigation in the coming years.

"Remote work and its impact on trade secrets claims remains a significant trend, though perhaps slowing as more organizations require and/or request that employees be physically present with greater frequency," McDonough said. "Regardless, we are still seeing remote work and people changing jobs without leaving home, leading to an increase in theft and misappropriation claims. I recently settled (pre-litigation) a dispute where a husband and wife, who worked for competing bidders on a real estate deal, were alleged to have shared proprietary information with each other while working from home, which allegedly allowed one spouse an advantage in understanding particular deal points. Yes, such claims could arise even without the rise in remote work, but there is no question the rise in remote work has led to an increase in such claims and we don't see that slowing down anytime soon."

Beyond his legal practice, McDonough is involved in various pro bono activities and professional associations. He received recognition from Vedder Price in 2023 for exceptional pro bono legal services, particularly for his work with 501(c) (3) nonprofits like ACEing Autism, Connecting Compton, Paving the Way Foundation, and the Center for the Arts. McDonough serves on the board of directors of the Paving the Way Foundation and is a member of the Counsel for Justice Board of Directors, where he co-chairs the annual charity golf tournament. He is also a member of the Sports Lawyers Association and a Founding Member of AthletesTouch, an organization for former athletes in Southern California.

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