Munger, Tolles & Olson represented online real estate marketplace Ten-X in obtaining on Oct. 21, 2016 a preliminary injunction in a lawsuit against Commercial Real Estate Exchange, Inc. (CREXi), an online commercial real estate start-up and Michael DeGiorgio, CREXi’s CEO.
Mr. DeGiorgio is a former Ten-X executive who founded CREXi along with other former Ten-X executives. In April 2016, Ten-X filed a lawsuit alleging breach of Mr. DeGiorgio’s Invention Assignment Agreement, misappropriation of trade secrets, breach of the duty of loyalty and breach of Mr. DeGiorgio’s confidentiality agreement.
Judge Robert L. Hess of the Superior Court of California, County of Los Angeles issued the injunction that went into effect on October 27, 2016. Among the conditions of the injunction, CREXi and Mr. DeGiorgio are barred from offering an online commercial real estate marketplace that facilitates the transaction process and includes one of seven defined features. CREXi and Mr. DeGiorgio are also barred for one year from marketing CREXi or its property listings to more than 75,000 customers whose names were on Ten-X customer lists found in the possession of CREXi. In addition, CREXi and Mr. DeGiorgio must destroy all Ten-X documents in their possession and certify that the destruction has been completed.
Led by Carolyn Hoecker Luedtke, the Munger Tolles team representing Ten-X includes Brad D. Brian, Steven M. Perry, and Jennifer L. Bryant.