Court bars ex-SMFI workers from sharing trade secrets

The Pasig City Regional Trial Court issued a temporary restraining order (TRO) preventing some former employees of San Miguel Foods Inc. (SMFI) from "continuing their employment of engagement with Bounty Agri Ventures Inc. and/or Tyson Agro Ventures," competitors of SMFI.

SMFI alleged that the individuals restrained by the court were former "employees of Purefoods Corp." who "were handpicked by" SMFI, "to hold key positions in contract growing operations, nutrition, technical services, quality control, business planning and sales of SMFI "when it acquired Purefoods Corp. and its operations were integrated with those of SMFI". The acquired information on the plans and strategies of SMFI "with the intention of resigning successively and joining Tyson Agro Ventures Inc. (Tyson) and its sister company, Bounty Agri Ventures Inc. (BAVI), which they subsequently did. As employees of BAVI and Tyson holding positions equivalent or comparable to those they occupied at "SMFI" and Purefoods Corp. and in order to effectively discharge their present positions at BAVI and Tyson, defendants would inevitably disclose SMFI’s confidential information, trade secrets and business strategies which could result in grave and irreparable damage and harm to the business operation of SMFI.

In issuing the TRO, the court said that the affidavits presented by SMFI show that since confidential information, trade secrets and business strategies belonging to it were acquired by its former employees, there is great risk that the defendants would disclose such confidential information, trade secrets, and business strategies to its competitors. And irreparable harm is presumed once a trade secret has been misappropriated. The court added that a trade secret, once lost, is lost forever and cannot be measured by money damages,

The court’s TRO likewise prevented the defendants Ronald R. Mascariñas, Vicente C. Manalo Jr., Danilo C. Boy, Rodolfo Consuelo, Romeo Sabacan, Joseph Alan Costales, Renato Fontillas, Alfredo Bautista, Dominador Magtoto, Arnel G. de la Cruz, Armi Avila, Jorge Avila, David Sabio Jr., Romeo Vidola, Carlos Pelayo Jr., Leonardo Mantanguihan, Mark Oliver Trias, Teodolito Pilares, Mardigrace Ortiz, Pauline Mabesa, Val Manzano, Augusto Badiong, Edilberto F. Cornejo and Lourdes Villarete from rendering services or performing any act in furtherance of such employment whether within or outside the premises of BAVI or Tyson and from using or applying any confidential information, trade secrets or business strategy of plaintiff, such as plaintiff’s formulae, patterns, compilations, programs, devices, methods, techniques, processes, feeds, expansion and growth targets, market strategies, systems and standards.