Salomon Smith Barney, Inc. v. Vockel - 137 F. Supp. 2d 599 (E.D. Pa. 2000)

Rule:

It is one of the fundamental principles upon which equity jurisprudence is founded, that before a complainant can have a standing in court he must first show that not only does he have a good and meritorious cause of action, but he must come into court with clean hands.

Facts:

Stewart M. Vockel, III ("Vockel") worked as a bond trader or financial consultant. He began with Plaintiff Salomon Smith Barney Inc. ("Smith Barney") in 1994, moving from a competing firm. In April 2000, while still employed by Smith Barney, he provided yet another competing firm his client accounts, subsequently resigning from Smith Barney and moving to the new firm. Smith Barney sued Vockel and sought a preliminary injunction against him pending arbitration, to restrain Vockel from using, disclosing, or misappropriating Smith Barney’s customer information, and compel him to undo account transfers and return all client information.

Issue:

Should the preliminary injunction being sought by Smith Barney be denied because Smith Barney did not come into the court with clean hands?

Answer:

Yes.

Conclusion:

 The court denied Smith Barney’s motion for preliminary injunction on the ground of unclean hands, because it was undisputed that Smith Barney’ secretly encouraged and aided Vockel to engage in the same unconscionable behavior in 1994 of which it was complaining. While not condoning Vockel’s behavior, the court focused on Smith Barney’s behavior, and, as a court sitting in equity, would not aid a wrongdoer.