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SAFEGUARD BUSINESS SYSTEMS INC. LOSES ROUND ONE

 SAFEGUARD BUSINESS SYSTEMS INC. LOSES ROUND ONE
 LOS ANGELES, Nov. 12 /PRNewswire/ -- The following was issued


today by Nasuti & Hinkle:
 On Nov. 6, 1992, in the Superior Court of California, County of Los Angeles, Safeguard Business Systems Inc., a Delaware corporation (headquartered in Fort Washington, Pa.) and manufacturer of One-Write business forms, lost its request for a preliminary injunction against Jay Keating of West Hills, Calif., a former Safeguard distributor/franchisee. Safeguard claimed that Keating's customer lists and other customer-related materials constituted a Safeguard "trade secret" which it keeps confidential and which resulted from its significant efforts to compile, maintain and protect.
 Judge Stephen E. O'Neil dissolved the temporary restraining order Safeguard had obtained against Keating in August, stating that, "Moving party (Safeguard) has made an insufficient showing of irreparable injury, reasonable probability of success on the merits, and inadequacy of remedy at law. In particular, moving party (Safeguard) has made an insufficient showing that the 'Customer Information' at issue is a protectable trade secret." In addition, he said, "The declarations submitted by moving party (Safeguard) are conclusory; there is insufficient evidence presented that the customer lists were products of moving party's time, effort, and money."
 In conclusion, Judge O'Neil said, "Upon balancing the protection provided to competition and the need to protect confidential information and, in light of the finding that moving party (Safeguard) has not shown that the customer information is a protectable trade secret, moving party (Safeguard) is not entitled to a preliminary injunction."
 Safeguard filed an immediate appeal of the decision. Its request for an immediate stay of Judge O'Neil's ruling has been denied.
 Keating continues to pursue a cross complaint against Safeguard and other defendants for $10,000,000. In that suit, Keating is suing for intentional and negligent misrepresentation, breach of good faith and fair dealing, libel, slander, restraint of competition, unfair business practices, breach of fiduciary obligation, conflict of interest and intentional and negligent infliction of emotional distress. In addition, the cross-complaint alleges that Safeguard failed to register its franchise offers with the Commissioner of Corporations of the State of California and that Safeguard contracts and practices violate various other California laws.
 Keating's attorney, Bruce C. Fishelman, of Stanbury, Fishelman & Levy of Los Angeles, also represents other former and current Safeguard distributor/franchisees in California. While these other clients are not parties to this particular suit, Fishelman indicated that their Complaint against Safeguard was being prepared for filing in the near future.
 -0- 11/12/92
 /CONTACT: Kathryn Kelley of Natsui & Hinkle, 301-652-8388, for Jay Keating & Assoc./ CO: Safeguard Business Systems Inc. ST: California IN: SU:


EH-LS -- LA029 -- 0420 11/12/92 17:28 EST
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Date:Nov 12, 1992
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