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SALEM INJUNCTION DENIED

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A LOCAL JUDGE HAS DENIED A REAL ESTATE BROKERAGE’S REQUEST TO HALT A FORMER EMPLOYEE’S NEW BUSINESS VENTURE.

UNITED REAL ESTATE HAD ASKED THE COURT TO ENJOIN ITS FORMER EMPLOYEE, RICHARD SALEM, AND HIS NEW COMPANY, RICHARD SALEM REAL ESTATE, FROM COMPETING AGAINST UNITED, CITING A COVENANT NOT TO COMPETE, WHICH THE PARTIES HAD PREVIOUSLY SIGNED WHEN SALEM BECAME AN EMPLOYEE OF UNITED.

THIS MORNING, JUDGE PATRICK TOTT ENTERED AN ORDER DENYING UNITED A TEMPORARY INJUNCTION, WHICH ALLOWS SALEM TO CONTINUE OPERATING HIS NEW BUSINESS. TOTT FOUND, WHEN UNITED REORGANIZED ITS COMPANY IN 2005, THE COVENANT NOT TO COMPETE BETWEEN SALEM AND UNITED BECAME MOOT.

SALEM, WHO IS 77 YEARS OLD AND HAS BEEN WAS A FORMER BROKERAGE MANAGER AT UNITED REAL ESTATE SOLUTIONS IN THE COMMERCIAL DIVISION. MOST RECENTLY, TOTT FOUND, HE WAS AN INDEPENDENT CONTRACTOR FOR UNITED COMMERCIAL UNTIL LAST MONTH, WHEN HE OPENED SALEM REAL ESTATE AT 700 PIERCE STREET IN SIOUX CITY. UNITED COMMERCIAL REAL ESTATE IS RELOCATING TO DAKOTA DUNES.

A TRIAL DATE ON UNITED’S REQUEST FOR A PERMANENT INJUNCTION AND OTHER CLAIMS AGAINST SALEM WILL BE HELD AT A DATE TO BE SET LATER.