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Workers' Compensation Recovery6/8/2004
formation to any other party, whether natural person, corporate entity or otherwise, to enable or assist such party to conduct business similar to or competitive with the business of. . . WCR with BHS, for a period of six months.
c. From representing to BHS, or its employees, that she remains employed by .
We conclude that the district court's August 15 order meets the requirements of Minn. R. Civ. P. 65.04.
IV.
Marvin argues that the evidence does not support the district court's Dahlberg analysis. We review the district court's findings to determine whether they are clearly erroneous and whether the district court abused its discretion in granting the injunction. LaValle v. Kulkay, 277 N.W.2d 400, 402 (Minn. 1979); Medtronic, 630 N.W.2d at 451.
1. Relationship of the Parties
The purpose of a temporary injunction is to maintain the matter in controversy in its existing condition until judgment, so that the effect of the judgment is not impaired by the parties' actions during litigation. Berggren v. Town of Duluth, 304 N.W.2d 24, 27 (Minn. 1981). Maintaining the matter in controversy in its existing condition until judgment does not refer merely to maintaining the facts and circumstances at the time of filing of the application for injunction, but may refer to the last uncontested status preceding the controversy between the parties. See Cox v. Northwest Airlines, Inc., 319 F. Supp. 92, 95 (D. Minn. 1970) (concluding that the court had "the power to shape relief in a manner which protects the basic rights of the parties, even if in some cases it requires disturbing the status quo"). Here, the district court acted to preserve the facts and circumstances as they existed immediately before the actions of Marvin which WCR challenges. Therefore, we reject Marvin's argument that the injunction is deficient for failure to preserve the status quo.
The district court concluded that " he nature of the parties' pre-existing relationship was one in which [Marvin] was an employee of who was entrusted with crucial client contacts. This factor weighs in favor of granting temporary equitable relief[.]" The record amply supports the conclusion that Marvin worked substantially with WCR's largest client for approximately ten years, during which time she was "entrusted with crucial client contacts" such as "the identities, job duties and titles of key contacts at ." Because WCR's claims are based on Marvin's use of this information to solicit BHS away from WCR while in her capacity as a WCR representative, the district court did not abuse its discretion in concluding that this factor weighs in favor of the injunction.
2. Balance of Harms
A temporary injunction should be issued "only when it is clear that the rights of a party will be irreparably injured before a trial on the merits is held." Miller, 317 N.W.2d at 712. Here, the district court concluded that " he balance of harms favors granting the temporary equitable relief. may and likely will suffer irreparable harm if relief is not granted; harm resulting to [Marvin] from granting this relief is less substantial than the harm to from denying it."
The record supports this finding. Without an injunction, Marvin would be permitted to profit from her alleged wrongdoing by securing BHS's business while working as a WCR employee. As already noted, we agree with the district court that this harm would be irreparable. By granting injunctive relief, the harm is minimized by allowing both Marvin and WCR six months to fairly compete for BHS's business. Therefore, we conclude that the district court did not abuse its discretion in concluding that the ba
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