Third-party processor CCBill is suing its chief competitor Paycom and former CCBill vice president of human resources Patrick Curran.
The lawsuit, filed on July 27 in Arizona Superior Court, alleges that Curran accepted a position at Paycom despite being under contract with CCBill. CCBill further alleges that Paycom was aware of Curran's employment agreement and a confidential disclosure agreement Curran signed with CCBill in 2001.
Paycom contends that Curran's employment agreement is unenforceable.
The suit states, in part, "...Paycom valued relationships Curran had established with certain of plaintiffs' clients and, upon informantion and belief, intended for Curran to utilize client data and information in order to solicit those entities and individuals to engage in business with Paycom and cease doing business with CCBill."
Curran's employment agreement with CCBill states that he may not work for any company that directly competes with CCBill for two years after his employment with the company ends, regardless of how employment is terminated.
CCBill alleges Curran stole their assets and trade secret information, an allegation stemming from a company-provided cell phone which Curran reportedly had transferred from the company's name to his.
CCBill is seeking compensatory damages in an amount to be proven at trial, together with a pre-judgment interest rate of 1.5 percent per month, and punitive damages. In addition, the suit seeks to bar Curran from working at Paycom.
Curran did not return request for comment. Paycom executives were unavailable for comment.
CCBill released a statement Friday night, which read, in part,"...management at Paycom, CCBill’s largest and most direct competitor, has apparently decided to compete with CCBill through corporate raids and attempts to mine CCBill’s trade secrets, rather than by offering superior products and pricing to the marketplace. CCBill was shocked to learn that two former CCBill employees, Patrick Curran and David Salonic, have departed for Paycom, and in Curran’s case without notice, taking with them knowledge of client lists and other valuable information, which they may be disclosing unlawfully to Paycom."
CCBill issued a statement this afternoon, which read, in part, "management at Paycom, CCBill's largest and most direct competitor, has apparently decided to compete with CCBill through corporate raids and attempts to mine CCBill's trade secrets, rather than by offering superior products and pricing to the marketplace. CCBill was shocked to learn that two former CCBill employees, Patrick Curran and David Salonic, have departed for Paycom, and in Curran's case without notice, taking with them knowledge of client lists and other valuable information, which they may be disclosing unlawfully to Paycom."
It continues, "CCBill recognizes that this response is a shift from their normal policy of not responding to rumors and innuendos, but believes it is important for the industry to know that CCBill is here for the long haul, and as always has done the right thing to protect its business and that of its clients."
