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Erik Larson
Bloomberg

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NEW YORK - International Business Machines Corp. can't start a new quest for a court order to block its former mergers-and-acquisition chief from performing duties at Dell Inc., a judge ruled.

U.S. District Judge Stephen Robinson in White Plains, New York, rejected IBM's claim this week that it had new evidence to include in a motion for a preliminary injunction against the ex-employee, David L. Johnson. Robinson denied IBM's first request June 26, saying it would unfairly hurt Johnson's career.

"The court shall not allow IBM to litigate this matter through piecemeal, seriatim motions requesting the same relief," Robinson said in a written ruling. Such a method "is vexatious and does a great disservice to the interests of Mr. Johnson and of the court."

IBM sought an injunction for the duration of the lawsuit in which it seeks to enforce a one-year noncompetition agreement that Johnson, a 27-year IBM veteran, says isn't valid because he deliberately signed it in the wrong space. IBM appealed Robinson's earlier ruling.

Dell, based in Round Rock, Texas, hired Johnson in May, triggering a lawsuit in which Armonk, New York-based IBM accused him of violating the agreement intended to protect trade secrets and retain employees.

"IBM continues to believe that its trade secrets are valuable, that Mr. Johnson has breached his duties to IBM, and that he should not be allowed to work at Dell," IBM spokesman Doug Shelton said in an email. "IBM will continue to pursue its legal options on appeal."

At issue in the lawsuit is whether the 2005 agreement is valid, even though it wasn't properly signed by Johnson and IBM never followed through on threats to take away his equity in the company if he didn't re-sign it.

In the ruling, Robinson said it still isn't clear how many potential acquisitions and divestitures IBM was considering when Johnson resigned, how critical the potential deals are to IBM or Dell, or which other companies might have been aware of the possible transactions.

Robinson didn't make a final ruling on the case and said in his decision that there are "serious questions going to the merits to make them a fair ground for litigation." Today's decision means Johnson can work for Dell while the lawsuit proceeds. Johnson, who held his last position at IBM for nine years, testified at a June 22 hearing he doesn't have a "great deal" of IBM's confidential information or trade secrets. Although Robinson ultimately agreed, he said Johnson has "inside strategic business information" and that IBM would be harmed without the injunction.

Robinson also sided with Johnson's claim that if he were prevented from carrying out his duties at Dell, his skills would become obsolete and he would lose contact with his network of investment bankers and consultants.

Johnson's lawyer, Ronald Richman of the firm Schulte Roth & Zabel LLP in New York, and IBM spokesman Doug Shelton didn't immediately return calls for comment.

The case is International Business Machines v. Johnson, 09- cv-04826, U.S. District Court, Southern District of New York (White Plains).