Opinion ID: 2971881
Heading Depth: 2
Heading Rank: 1

Heading: The Michigan Lawsuit

Text: In the first lawsuit, EPG sued defendants Quigley, Carrigan, and Bank Insight, LLC, who were represented by Stavale and his law firm. Quigley and Carrigan were former employees of EPG who had started a similar bank-consulting business in competition with EPG. EPG accused the former employees of misappropriating trade secrets, but after extensive preparation for trial, the parties settled the misappropriation case. Only the parties to the suit signed the agreement. Stavale was not a party, and he did not sign the agreement, even though it stated that it covered “employees, agents and representatives.” In the first paragraph, the agreement states that it is “by and between -2- No. 04-1120 Earnings Performance v. Quigley, et al. Earnings Performance Group, Inc.” and “Eugene Carrigan, his heirs, successors, agents, representatives and assigns (referred to collectively as ‘Carrigan’), Robert Quigley, Jr., his heirs, successors, agents, representatives and assigns (referred to collectively as ‘Quigley’), and Bank Insight, LLC, its present and former officers, directors, shareholders, members, employees, agents, representatives . . . .” In paragraph 17, the agreement restates the same idea except that it adds an additional sentence that is somewhat unclear, but appears to mean that none of the listed nonsigning groups are mutually bound like the signatory parties: Binding Settlement. All of the terms and conditions of this Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, devisees, personal representatives, divisions, subsidiaries, parents, affiliates, predecessors, directors, employees, officers, agents, shareholders, other representatives, successors and permitted assigns. Nothing in this Agreement is intended to confer any rights or remedies under or by reason of this Agreement on any person other than the parties to this Agreement or as set forth herein. In paragraph 9 of the Agreement, Quigley and Carrigan also agreed “not to assist or work with any third party regarding any” dispute or lawsuit with EPG. EPG relies heavily on this provision for its Motion for Preliminary Injunction against Stavale and for damages against the other defendants. This provision, section 9b(ii) of the Settlement Agreement, provides as follows: Defendants [Quigley, Carrigan and Bank Insight] agree not to assist or work with any third party regarding any claim or dispute between said third party and EPG. Accordingly, and without limitation, Defendants shall not act as a witness or offer to testify for such a third party. In the event any subpoena is served on Defendants for the production of documents or calling for a witness to testify by way of deposition or at trial in a case between a third party and EPG, Defendants shall immediately notify EPG and coordinate any response to the subpoena with EPG. In the Agreement, Carrigan and Quigley also agreed to pay EPG $180,000. The settlement is a detailed 23-page document in which Carrigan and Quigley agreed to honor the provisions of their -3- No. 04-1120 Earnings Performance v. Quigley, et al. earlier employee confidentiality agreement with EPG and to acquire by license from EPG for five years the right to sell or use in their business certain “services or goods” pertaining to the bankconsulting business.