Companies across a broad range of industries – and, in particular, in the medical device and biotechnology, healthcare and digital health, financial services, transportation, chemical, and energy sectors – have trusted Shannon Hampton Sutherland to assist them with complex commercial and employment-related disputes, restrictive covenants, trade secrets, and business torts. She is a noted strategic thinker, practical advisor, and sharp trial and injunction lawyer, who is well versed in advising cross-functional teams, with a particular emphasis in helping companies avoid and navigate disputes involving non-compete, non-solicit, and other restrictive covenant agreements, confidential information and trade secrets, customer and employee goodwill, unfair competition, and customer, consultant, and employee relationships.
Ms. Sutherland routinely obtains and defends against temporary restraining orders and injunctions across the country and has represented clients in business, non-compete, and trade secret litigation nationwide.
Ms. Sutherland has also represented several public entities in litigation and counseling roles.
Ms. Sutherland is co-chair of the Duane Morris Non-Compete and Trade Secrets division of the Trial Practice Group. She serves as a team lead of the firm's Life Sciences and Medical Technologies industry group and is also a member of the Trial, Commercial Litigation and Transportation industry groups.
Areas of Practice
- Injunctions – prosecution and defense
- Temporary restraining orders
- Preliminary injunctions
- Permanent injunctions
- Restrictive covenants – drafting, counseling, and litigation
- Non-competition agreements
- Non-solicitation agreements
- Confidentiality, non-disclosure, and invention agreements
- Distributor agreements – drafting, counseling, and litigation
- Business tort and statutory claims, including, for example:
- Defend Trade Secrets Act and state law trade secrets claims
- Unfair competition
- Tortious interference
- Breach of fiduciary duty/duty of loyalty
- Fraud
- Computer Fraud and Abuse Act
- Complex commercial and business and contract disputes
- Employment-related disputes
- Declaratory judgment actions
- Zoning matters
Representative Industries
- Medical devices and life sciences, with particular experience with implantable device, biologics, and healthcare services companies
- Facilities management services
- Chemical
- Paper/packaging
- Software
- Franchise
- Construction
- Financial Services
Representative Matters
Provided advice and counsel, drafted agreements, and avoided litigation for a range of non-compete/confidential information/trade secret matters for companies in various sectors, including life sciences/medical technologies/health and financial services.
Obtained injunction against former executive of plaintiff—a Fortune 1000 global leader in providing integrated development and manufacturing solutions to help pharmaceutical and biotechnology customers develop and launch successful pharmaceutical, biologic, and consumer health products—in a suit against its former executive for misappropriation of trade secrets under the Defend Trade Secrets Act and New Jersey Trade Secrets Act, inevitable disclosure of trade secrets, breach of the employee duty of loyalty, breach of the confidentiality provisions of various agreements, fraudulent inducement, and violation of non-competition covenant.
Defeated injunction and obtained dismissal of trade secret, tortious interference, and conspiracy claims against medical device company and its employees.
Won a temporary restraining order to prevent senior executive of food and facilities management services company from working for competitor.
Won a temporary injunction and preliminary injunction on behalf of a healthcare services company against a former employee and her new employer, enforcing a non-compete agreement; obtained court order requiring employee to resign from new employment.
Obtained a preliminary injunction on behalf of a medical device and biologics company against its former product manager who went to work for a competitor.
Defeated injunction sought against two physicians and their new practice.
After mounting a vigorous defense, convinced the plaintiff to dismiss all claims for misappropriation of trade secrets claims against the client in the health care reimbursement industry.
After mounting a vigorous defense, obtained a complete voluntary dismissal by the plaintiff of all claims, including breach of restrictive covenants, misappropriation of trade secrets, tortious interference with contract, tortious interference with business relationships, and breach of fiduciary duty, against medical device company.
After mounting a vigorous defense, staved off injunction and favorably resolved non-compete, tortious interference, and trade secret claims against eHealth client.
Obtained injunction against departing employee for misappropriation of trade secrets on behalf of transportation industry client.
Defeated former employee’s motion for summary judgment on claim for breach of non-compete agreement in automotive industry.
Defeated defendants’ motion for summary judgment on misappropriation of trade secret claims for automotive industry client.
Successfully moved to dismiss claims for tortious interference with employment contract for medical device industry client.
Obtained anti-suit injunction preventing competitor from suing client and its new employees in another jurisdiction.
After aggressively pursuing non-compete, tortious interference, and misappropriation of trade secrets claims against competitor and multiple former employees, obtained large settlement in favor of chemical industry client.
Obtained a temporary restraining order and injunction on behalf of a genetic biosciences company to protect its rights in a genetic profile that it marketed for use in customizing cosmetics and nutritional supplements. Recovered the client's financial losses and attorneys' fees.
Represented executives in numerous industries in negotiating favorable restrictive covenant terms.
Served as national counsel to various companies, including in the medical device, healthcare services, document management, and facilities management industries, for all matters involving restrictive covenants, confidentiality obligations, tortious interference, breaches of fiduciary duty and duty of loyalty, and trade secrets.
Served a year-long in-house secondment in a counseling and litigation role for an office equipment, document management, and facilities services client, focusing on trade secret, fiduciary duty, and restrictive covenant matters and commercial contract disputes. Litigated such matters in federal and state courts across the country.
Solidified win for healthcare network management company in two rounds of appeal arising out of defense of an arbitration involving claims of fraudulent inducement, negligent misrepresentation, and four separate breach of contract claims.
Defended a healthcare network management company against claims by its former CEO who alleged that the company failed to pay him a transaction bonus he claims was due and failing to accelerate other payments to him as a result of a complex financial transaction.
Secured a $41 million award for breach of contract against an international defense contractor in connection with a joint venture to provide international security to the U.S. government. Secured a complete victory in defending the client against complex counterclaims for breach of contract, fraud, and rescission.
Obtained defense jury verdict on claims for breach of distributor contract and defeated fraud claims before trial.
Obtained summary judgment on all of distributor's $4+ million claims in connection with medical device manufacturer's termination of distributorship agreement.
Defeated a request for interim measures, and subsequently obtained a complete defense victory, on behalf of the owner's representative in a $4+ million construction payment and delay dispute before the American Arbitration Association.
Obtained at trial, and successfully defended on appeal to the Commonwealth Court of Pennsylvania, and on a petition for appeal to the Supreme Court of Pennsylvania, a complete defense verdict in favor of a public authority on $1 million in claims related to the transfer of real property, as well as an award of attorneys' fees and costs for client in connection with the plaintiff's vexatious and obdurate litigation conduct.
Obtained a directed verdict on behalf of a public authority at jury trial on breach of contract claims involving software sale and implementation.
Obtained a ruling from the Supreme Court of Pennsylvania denying a petition for allowance of appeal from the order of the Commonwealth Court of Pennsylvania affirming the trial court's complete defense verdict in favor of our clients on breach of contract and unjust enrichment claims.
Represented the former director of a public company in a lawsuit by the minority stockholders for breaches of fiduciary duty in connection with a merger.
Represented a nonprofit research institute in a dispute over payment of royalties for use of a cell line in the development of a major vaccine.
Represented a public utility as appellee before the Pennsylvania Commonwealth Court in a dispute with a Pennsylvania county which contended that the public utility was required to secure the county’s permission before changing the installation method from horizontal directional drilling to open trench installation. After our team defeated the county’s request for a preliminary injunction to enjoin construction of the public utility project on county-owned property, the county appealed to the Commonwealth Court. The Commonwealth Court unanimously affirmed the denial of the county’s requested preliminary injunction.
Obtained a ruling from the Supreme Court of Pennsylvania denying a petition for allowance of appeal from the order of the Commonwealth Court of Pennsylvania affirming the trial court's complete defense verdict in favor of public authority client on breach of contract and unjust enrichment claims.
Obtained at trial, and successfully defended on appeal to the Commonwealth Court of Pennsylvania, and on a petition for appeal to the Supreme Court of Pennsylvania, a complete defense verdict in favor of a public authority on $1 million in claims related to the transfer of real property, as well as an award of attorneys' fees and costs for client in connection with the plaintiff's vexatious and obdurate litigation conduct.
Obtained a directed verdict on behalf of a public authority at jury trial on breach of contract claims involving software sale and implementation.
After mounting a vigorous defense, successfully resolved a complex, multi-year water infrastructure dispute between city and public housing authority client.
Represented state agency in a $100+ million breach of contract and fraud case against software company over failed software implementation.
Represented venture capital fund advisory board (which included public pension funds), with a total investment in excess of $100 million, in the investigation of the fraudulent activities of the general partner and litigation against the general partner's counsel for fraud and attorney malpractice, with an ultimate recovery in excess of $5 million.
Served as municipal zoning hearing board solicitor.
Restrictive Covenant, Trade Secret, Business Tort, and Injunction Matters
Other Complex Contract and Commercial Matters
Representation of Public Entities and Public Utilities
Admissions
- Pennsylvania
- New Jersey
- Supreme Court of Pennsylvania
- Supreme Court of New Jersey
- U.S. Court of Appeals for the First Circuit
- U.S. Court of Appeals for the Third Circuit
- U.S. District Court for the Eastern District of Pennsylvania
- U.S. District Court for the Middle District of Pennsylvania
- U.S. District Court for the District of New Jersey
Education
- The American University, Washington College of Law, J.D., cum laude, 2002
- Phi Delta Phi Legal Ethics Fraternity, Kennedy Inn, Clerk - Temple University, B.A., summa cum laude, 1997
Experience
Duane Morris LLP, Philadelphia, PA
- Co-Chair, Non-Compete & Trade Secrets Practice
- Partner, 2011-present
- Associate, 2002-2010
- Law Clerk, 2001Flott & Co, P.C., Alexandria, VA
- Law Clerk, 2001-2002Maryland State’s Attorney’s Office, Montgomery County, MD
- Law Clerk, 2000- Prior to her legal career, Ms. Sutherland managed exports in the paper and chemical industries.
Professional Activities
- Duane Morris Professional Standards Committee
- Duane Morris Partner Technology Committee
- Philadelphia Court of Common Pleas Landlord-Tenant Appellate Mediation Program, Mediator Panel
- Eastern District of Pennsylvania Prisoner Civil Rights Panel, Service as Court-Appointed Counsel
- Leadership Council on Legal Diversity Law School Mentoring Program, Mentor
- Nether Providence Township Zoning Hearing Board, Former Vice Chair and Former Board Member
Honors and Awards
- Listed in The Best Lawyers in America, 2023 and 2024
- Listed in Pennsylvania Super Lawyers Rising Stars
No aspect of these rankings has been approved by the Supreme Court of New Jersey. Further information on methodologies is available via these links.
Civic and Charitable Activities
- Womens Leadership Committee, City Year Philadelphia 2016-2023
Selected Publications
- Co-author, "Federal Court Stops the FTC Noncompete Rule from Being Enforced or Taking Effect," Duane Morris Alert, August 21, 2024
- Co-author, "FTC Ban on Noncompetes Set to Take Effect September 4, with Efforts to Halt Unsuccessful Thus Far ‒ Here Are Steps Employers Should Be Taking Now," Duane Morris Alert, August 8, 2024
- Co-author, "Pennsylvania's New Fair Contracting for Health Care Practitioners Act Limits Post-Employment Noncompetes, Requires Notice to Patients of Practitioner's Departure," Duane Morris Alert, July 26, 2024
- Co-author, "Pennsylvania Federal Court Denies Injunction, Dealing a Further Blow to Efforts to Halt FTC's Ban on Noncompetes, Set to Take Effect on September 4, 2024," Duane Morris Alert, July 24, 2024
- Co-author, "Rhode Island Governor Vetoes Bill Banning Noncompetition and Customer Nonsolicitation Covenants with Employees," Duane Morris Alert, July 8, 2024
- Co-author, "Texas Federal Court Enjoins FTC from Enforcing Ban on Noncompetes Against Parties to Lawsuit, But Refuses to Issue Nationwide Injunction," Duane Morris Alert, July 3, 2024
- Co-author, "Rhode Island Legislature Votes to Join the Ranks of States Banning Noncompetition and Customer Nonsolicitation Covenants with Employees," Duane Morris Alert, June 24, 2024
- Co-author, "FTC Votes to Ban Non-Compete Agreements," Duane Morris Alert, April 23, 2024
- Co-author, "FTC to Vote April 23 on Rule to Ban Noncompete Agreements," Duane Morris Alert, April 19, 2024
- Co-author, "New York Governor Vetoes Legislation Prohibiting Noncompete Agreements," Duane Morris Alert, January 2, 2024
- Co-author, "California's One-Two Punch: New Law Further Strengthens State's Noncompete Ban," Duane Morris Alert, October 18, 2023
- Co-author, “New California Law Expands Claims and Remedies Against Employers for Noncompetition Agreements That Violate State Law,” Duane Morris Alert, September 12, 2023
- Co-author, “New York Likely to Become the Latest State to Ban Employee Noncompetition Covenants,” Duane Morris Alert, June 23, 2023
- Co-author, “Minnesota Becomes the Latest State to Ban Employee Noncompetition Covenants,” Duane Morris Alert, June 13, 2023
Regular contributor, Duane Morris Non-Compete & Trade Secrets Law Blog
- Co-author, “NLRB Joins Efforts to Curtail Enforcement of Non-Compete Agreements,” Duane Morris Alert, June 2, 2023
- Co-author, “Bipartisan Senate Bill Would Largely Eliminate Noncompete Agreements,” Duane Morris Alert, February 9, 2023
- Co-author, “FTC Proposes Nationwide, Retroactive Ban on Virtually All Non-Compete Clauses,” Duane Morris Alert, January 6, 2023
- Co-author, “Washington, D.C., Walks Back Noncompetition Agreement Ban, Enacts Income-Based Threshold for Agreements Signed on or After October 1,” Duane Morris Alert, August 8, 2022
- Co-author, “Colorado Becomes the Latest State to Enact Income-Based Threshold for Noncompetition and Customer Nonsolicitation Covenants,” Duane Morris Alert, July 21, 2022
- Co-author, “Washington, D.C., Ban on Noncompetes Postponed Again, to October 1, 2022,” Duane Morris Alert, March 17, 2022
- Co-author, “Colorado Enacts Legislation Authorizing Potential Criminal Liability for Employers that Violate State Noncompetition Statute,” Duane Morris Alert, January 28, 2022
- Co-author, “Oregon and Nevada the Latest States to Amend Noncompete Statutes, Bolstering Employee Protections,” Duane Morris Alert, August 10, 2021
- Co-author, “SCOTUS Limits Scope of Computer Fraud and Abuse Act, Which Could Impact Terms of Use Agreements,” Duane Morris Alert, June 21, 2021
- Co-author, “Supreme Court of Pennsylvania Finds No-Hire Provision Between Two Businesses 'Unreasonably in Restraint of Trade and Therefore Unenforceable',” Duane Morris Alert, May 3, 2021
Author, “Pennsylvania Superior Court Holds 'No-Hire' Provision in Commercial Contract Between Two Businesses Unenforceable in a Case of First Impression,” Duane Morris Alert, February 21, 2019
Co-author, “Expert Evidence in the Third Circuit,” published in the American Bar Association’s Scientific Evidence Review: Admissibility and Use of Expert Evidence in the Courtroom, Monograph No. 9 (2013), No. 8 (2008), and No. 6 (2003)
- Regular contributor, Duane Morris Non-Compete & Trade Secrets Law Blog
Selected Speaking Engagements
- Interviewee, “With FTC Noncompete Ban Overturned, What Does HR Need To Do?” HR Executive, September 3, 2024
- Speaker, “The Intersection of Employee Mobility, Trade Secret Theft & White-Collar Crime,” Silicon Valley Tuesdays at Taverna Series, with Special Guest Nicholas Walsh, Assistant U.S. Attorney, Northern District of California, National Security & Cyber Crime Section, June 11, 2024
- Speaker, “Employer Rights to Protect Trade Secrets, Intellectual Property and Confidential Business Information Against Unfair Competition,” Duane Morris Developments in Workplace Law and Practice Seminar, May 7, 2024
- Presenter, “The M&A Minute: FTC Votes to Ban Non-Competes,” Duane Morris M&A Minute, April 25, 2024
- Interviewee regarding FTC Non-Compete Ban, KCBS Radio, Audacy, Bret Burkhart and Patti Reising Show, April 24, 2024
- Interviewee, “Law Could Export California’s Ban on Non-compete Clauses,” Craig Anderson, San Francisco Daily Journal, September 18, 2023
- Panelist, “Business and Legal Trends Impacting Emerging Technologies: How to Protect IP in an Increasingly Challenging Legal Environment,” Duane Morris Life Sciences GC Bootcamp Series, May 23, 2023
- Presenter, “The M&A Minute: Buyer Beware – Increased focus on Non-Compete Clauses in M&A Agreements,” Duane Morris M&A Minute, April 27, 2023
- Co-author and presenter, “FTC Proposes Rule Banning Use of Non-Competes. Now What?,” Duane Morris Institute, Webinar, January 24, 2023
- Interviewee, “FTC’s Non-Compete Proposal Could have Unanticipated Effects for Biotech,” Richard Guy, BioCentury, January 18, 2023
Co-author and presenter, “Protecting Your Business with Employment Agreements,” Duane Morris' Developments in Workplace Law and Practice Seminar, Philadelphia, 2019
Co-author and presenter, “Are You Up-to-Date on Key Provisions and Confidential Information Protections in Term Sheets, MOUs and Letter Agreements?” Duane Morris Commercial Contracts Checkup Series, Webinar, 2018
Co-author and presenter, “Before Definitive Agreement— Effective Use of Contract Term Sheets and MOUs/Letter Agreements, and Confidentiality Provisions and Trade Secret Protections,” Duane Morris Commercial Contracts Checkup Series, Webinar, June 21, 2018
Co-author and presenter, “Confidentiality Considerations for Board Members and Employees,” Client Board Series, 2018
Co-author and presenter, “Non-Compete Agreements: A Sword and A Shield,” Association of Corporate Counsel of Greater Philadelphia Litigation Institute, 2018
Co-author and presenter, “Cross-Examination of Expert Witnesses,” Client CLE Boot Camp, 2018
- Interviewee, “Q&A: Duane Morris Attorneys Weigh In On Recent Trade Secret Law Trends,” Westlaw Journal Intellectual Property, August 16, 2017
Co-author and presenter, “The Federal Defend Trade Secrets Act-One Year Later,” Business Law Institute 2017, Pennsylvania Bar Institute, PBI No. 2017-9849 (2017)