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Workers' Compensation Recovery6/8/2004
Appellant Robin Marvin challenges a temporary injunction enjoining her from conducting business with Benedictine Health Systems (BHS), a former client of Marvin's previous employer, respondent Workers' Compensation Recovery, Inc. (WCR). Marvin argues that the district court abused its discretion in issuing the injunction because (1) WCR showed neither irreparable harm nor inadequacy of its legal remedy, (2) the district court's factual findings are inadequate, (3) the court violated Minn. R. Civ. P. 65.04 because the injunction order does not contain a specific application of the Dahlberg factors, (4) the evidence does not support the district court's Dahlberg analysis, and (5) a temporary injunction was unnecessary because a temporary restraining order was previously issued. We affirm.
FACTS
In 1988, William Johansen founded respondent Workers' Compensation Recovery, Inc. (WCR), a company that works primarily with long-term health-care facilities and their injured employees to help minimize their workers' compensation insurance costs. WCR's methodology focuses on working with a small number of injured employees, whose claims constitute the vast majority of workers' compensation costs, to help them return to productive work as quickly as possible. According to Johansen, WCR has been more successful than its competitors due to its unique insights and methodology. Johansen attributes WCR's success to its personal relationships with its customers, its knowledge of the workers' compensation industry, and its innovative methodology.
In October 1992, Johansen hired appellant Robin Marvin as a program manager and began training and educating her on WCR's business methods and procedures. As program manager, Marvin coordinated injured employees' medical treatment with treating physicians, the employer, and the workers' compensation carrier and often attended doctors' appointments with employees. Prior to her employment with WCR, Marvin was a registered nurse with no previous experience in the workers' compensation or insurance industries. But Marvin asserts that her nursing background greatly assisted her in identifying which employees were at risk for costly claims, understanding the employees' injuries, assessing their abilities to return to work, and determining which job duties they were capable of performing. Marvin did not sign an employment contract or a non-compete agreement with WCR.
WCR subsequently assigned Marvin to work with Health Dimension, one of its most important clients. In 1998, Health Dimension merged with Benedictine Health Systems (BHS), an operator of over 80 residential-care facilities. Although there was no written contract between BHS and WCR, WCR continued working with approximately 15 of BHS's facilities after the merger. According to Johansen, WCR entrusted Marvin with substantial confidential information during the course of her employment, including WCR's methodology and philosophy, access to key contact people at BHS, and access to billing information. Using this information, Marvin developed a relationship with BHS on behalf of WCR.
But by 1999, WCR had lost several clients and employees, and Marvin became increasingly concerned about her job security. In January 2001, WCR's only clients were BHS and one other facility, and by 2002, BHS was generating more than 90% of WCR's revenue. Marvin contemplated resigning from WCR, but agreed to stay after receiving a raise and Johansen's assurance that he would acquire new business opportunities.
In April 2003, Marvin set up a meeting with several BHS executives on behalf of WCR to discuss BHS's upcoming renewal with its insurance carrier and future services with W
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