Nov 27 (Reuters) - A federal judge in San Francisco has
temporarily blocked a former Citigroup private banker from
using confidential information related to Citi's law firm
clients following his move to competitor Bank of Montreal ( BERZ )
.
U.S. District Judge Charles Breyer on Tuesday ordered John
Mitchell, a former managing director in Citi Global Wealth at
Work's law firm unit, to return any of the bank's records within
24 hours.
Breyer said Citi showed that Mitchell "likely
misappropriated its trade secrets in the form of confidential
client information" and "likely breached" some of his
contractual obligations to Citi.
Citibank and Citigroup Global Markets sued Mitchell and
former Global Wealth at Work law firm unit senior vice president
Benjamin Carr last week.
The San Francisco-based bankers were among 18 from Citi who
joined BMO's law firm wealth management group in a move
announced last month. BMO is not a defendant.
Citi accused Mitchell and Carr of taking or retaining the
bank's confidential and proprietary information and using it at
BMO, including clients' cash balances and the maturity dates of
savings accounts. Mitchell and Carr have denied the allegations
as "baseless speculation."
Lawyers for the two bankers did not immediately respond to
requests for comment on Wednesday. A spokesperson for Citi
declined to comment. A BMO spokesperson said "we respect the
Court's decision and will continue to defend against these
claims."
Breyer's ruling granting a temporary restraining order cited
an email Mitchell sent an unnamed Citi client earlier this month
in which he referenced the client's "high cash position."
"The court concludes that such information is a protected
trade secret," Breyer said.
Breyer denied Citi's request for a similar injunction
against Carr, finding it did not show that Carr has "used or
misappropriated any client lists, client information, or other
trade secret while at BMO."
Breyer's order against Mitchell expires Dec. 11. A hearing
in the case is set for Dec. 13.
The case is Citibank, N.A. v. Mitchell, U.S. District Court
for the Northern District of California, No. 3:24-cv-08224
For Citi: Stacy Fode and Natalie Bryans of Nukk-Freeman &
Cerra; and Leonard Weintraub of Paduano & Weintraub
For Mitchell and Carr: Paul Riehle and Tracey Salmon-Smith
of Faegre Drinker Biddle & Reath