On January 4, the United States District Court for the Eastern District of Michigan granted partial summary judgment for Zuber Lawler client Auto Konnect, LLC, that BMW of North America, LLC breached a service provider contract between the parties by directly hiring all 38 Auto Konnect employees providing services to BMW, destroying that entire division of Auto Konnect’s business. The Court rejected BMW’s arguments that the contract only required BMW to provide notice if it hired Auto Konnect’s employees and that the contract was an unenforceable restraint of trade because it limited the employees’ mobility without their consent. The Court also denied BMW’s cross-motion for summary judgment in its entirety, finding that Auto Konnect had offered sufficient evidence to support its related claims for breach of the implied covenant of good faith and fair dealing and for tens of millions of dollars in consequential damages. The case is now expected to proceed to trial, where the jury will be instructed that BMW breached the contract and will be asked to determine the extent of Auto Konnect’s damages.

The Zuber Lawler team representing Auto Konnect includes Jeff Zuber, Jay Maloney, Brian Beck, Francesca Germinario, and Debora Sanfelippo.