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ANSYS, Inc. v. Computational Dynamics North America, Ltd.

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Before Lynch, Chief Judge, Howard, Circuit Judge, and Woodlock, *fn1 District Judge.

ANSYS, Inc. (“ANSYS”) is a company that produces propriety software in the field of computational fluid dynamics (“CFD”). In August 2009, ANSYS sued its former employee, Dr. Doru Caraeni, and his new employer, Computational Dynamics North America, Ltd. (“CDNA”), in the federal district court for the district of New Hampshire, alleging breach by Dr. Caraeni of the non-competition and confidentiality clauses in his ANSYS employment contract, interference with contractual relations, misappropriation of trade secrets, and unfair trade practices. CDNA and ANSYS are competitors; together they occupy approximately 80 percent of the market for CFD software, which is used for modeling and simulating fluid and gas flows. ANSYS had employed Dr. Caraeni from January 2002 to May 2009 to develop code for CFD simulation software.

ANSYS sought a preliminary injunction to enforce the provisions of a one-year non-competition clause in Dr. Caraeni’s employment agreement. The district court denied the request, finding that ANSYS had not met the requirements for injunctive relief. See ANSYS, Inc. v. Computational Dynamics N. Am., Ltd., Civ. No. 09-cv-284-SM, 2009 WL 4403745 (D.N.H. Nov. 25, 2009). We expedited the appeal. After oral argument this court issued an order affirming the denial of preliminary injunctive relief. We also said we would later issue our opinion in this case, as we do now, and judgment would not enter until we had done so.

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