Alison Arbitrage was hired fresh out of college by Debenture Option Warrant Co. ("DOW"), a securities trading firm. When Alison accepted the job, she signed a noncompetition agreement that barred her from trading any securities she had traded at DOW for a period of one year after terminating her employment with the firm. Alison completed a six-month-long training program, and became a successful and profitable securities trader with the firm. p. 901 Three years after joining the firm, Alison left DOW to begin her own, competing business. 

DOW sued Alison seeking remedies for breach of her agreement not to compete. At trial, evidence showed that Alison's training cost DOW $75,000. Evidence further revealed that while she was employed with the firm she earned $1.5 million in salary and bonuses but earned $5 million in revenues for the firm. Although DOW was not able to identify specific trading business it lost as a result of Alison's breach, DOW established that Alison earned over $2 million in profits from sales of securities in violation of the noncompetition agreement. 

Assume the noncompetition agreement is enforceable and that Alison materially and unjustifiably breached it to such a degree that rescission would be available. 

What measure of restitution would you award DOW, and why?

Answer rating: 100% (QA)

In this scenario DOW could seek restitution for the damages caused ... View the full answer