System One and Acara Resolve Tempnapping Case

SLN has been following a case involving an attempted workforce transfer by a staffing firm client. The client, Alstom Transportation, attempted to move the workers of System One to its new staffing supplier, Acara Solutions. System One was of course not happy about this and sued Alcara under two theories: interference with its Alstom contract, and misappropriation of trade secrets (e.g., pricing and employee information). The earlier stories can be found here:

System One Brings “Tempnapping” Suit Against Acara Solutions

The case was filed on February 19, 2024, in the U.S. District Court for the District of Western Pennsylvania.

Staffing Legal NewsBill Josey

Court Denies Acara’s Motion to Dismiss System One’s Tempnapping Case

U.S. District Court Judge Maryland Horan has denied Acara Solutions’ request for dismissal of System One’s “tempnapping” lawsuit filed last month.

Staffing Legal NewsBill Josey

After some legal jousting, the parties have agreed to a settlement that allows System One to keep its workers on assignment at Alstom until October 1, 2024. They also agreed to cooperate in the transfer to System One of workers that had been switched. The settlement was documented in a Consent Order, copy attached below.

System One managed to accomplish this without suing its client for breach of contract or its temps for violating their presumed non-circumvention agreements. This no doubt reflects System One's recognition that suing clients and workers is generally not good for a firm's reputation in the marketplace. The outcome seems reasonable from both parties' standpoint.