JLM Couture, Inc. v. Gutman, No. 21-870 (2d Cir. 2022)
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Plaintiff, a bridal designer and social media influencer, appealed the district court's preliminary injunction (PI), based in part on an employment agreement between plaintiff and JLM, ordering plaintiff not to compete with JLM through the end of her contractual term, enjoining her from using her name and its derivatives in trade or commerce, and granting JLM exclusive control over three disputed social media accounts for the duration of the litigation.
The Second Circuit concluded that the district court did not abuse its discretion in entering the noncompete and name-rights prongs of the injunction, which properly flow from JLM's likely meritorious claims against plaintiff for breach of contract. The court also concluded that the district court did not err in rejecting plaintiff's contention that JLM breached the contract by refusing to pay her after she stopped working. However, the court concluded that the district court exceeded its discretion by transferring exclusive control over the disputed social media accounts to JLM while explicitly declining to assess whether JLM would likely succeed on its claim that it owned the accounts. Accordingly, the court affirmed in part, vacated in part, and remanded for further proceedings.
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