A staffing company brought action against competitor and former
employee, who began working for competitor, for breach of contract,
misappropriation of trade secrets, unfair and deceptive trade practices, and
tortious interference with a contract. Following a bench trial, the Superior
Court, Wake County, James C. Spencer, J., entered judgment in favor of company.
Competitor and former employee appealed.

The Court of Appeals, McCullough, J., held that:

(1) noncompetition agreement, which was executed as part of incentive stock
option agreement, did not supersede earlier non-competition and non-solicitation
agreement, and thus no novation occurred;

(2) non-competition agreement extended beyond any legitimate interest that
company might have had and thus was unenforceable;

(3) evidence supported trial court's finding that competitor and former employee
knew of company's confidential information, had opportunity to acquire it, and did
so, causing harm to company;

(4) violation of Trade Secrets Protection Act by former employee and competitor
constituted unfair act or practice; and

(5) company was entitled to greater of either extent to which company had
suffered economic loss or extent to which competitor had unjustly benefited from
use of company's marketing strategy information and per diem nurse information.

Reversed in part and vacated and remanded in part.