Facts

On May 25, 2017, David I. Rainer entered into a consulting agreement with PacWest for a yearly fee of $550,000. Rainer was hired as the Executive Chairman of Bank of Southern California on November 5, 2020. On December 1, 2020, PacWest filed a complaint for unfair competition, breach of contract and breach of the covenant of good faith and fair dealing. On December 23, 2020, Rainer filed a cross-complaint against PacWest for breach of contract, breach of implied covenant of good faith and fair dealing, and unfair competition.

PLAINTIFF'S CONTENTIONS: Plaintiff contended that it entered into a consulting agreement with defendant Rainer that contained a valid non-compete clause and obligations to assist Plaintiff's business development but that defendant Rainer took a position at a competing banking institution, defendant Bank of Southern California, while still bound by the terms of their agreement and embarked on a plan at Bank of Southern California to illegally solicit Plaintiff's employees and customers.

DEFENDANTS' CONTENTIONS: Defendants denied all contentions, including because the non-compete clause was no longer in effect or enforceable at the time he took a new position.

Result

Defendant Bank of Southern California paid $6,500,000 in settlement of all claims.