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Dunkin’ official settles with Starbucks

Associated Press / October 29, 2009

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SEATTLE - Competition between Starbucks and Dunkin’ Donuts has gone beyond mochas and lattes to high-level executives.

Paul Twohig of Hilton Head, S.C., a former Starbucks Coffee US senior vice president hired by Dunkin’ Donuts, has agreed to pay $500,000 to settle a lawsuit that accused him of violating a noncompetition agreement, according a written statement issued by Stacey Krum, a spokeswoman for Starbucks.

Twohig also promised not to share Starbucks Corp. trade secrets or other confidential information with Dunkin’, a division of Dunkin’ Brands Inc. of Canton, Mass., or to start work before Jan. 15, Krum wrote.

In a court filing Monday, Starbucks gave notice the lawsuit had been settled and a stipulation to dismiss the case would be filed on or about Nov. 3.

Twohig remains in training until he can “assume leadership of our operations team beginning Jan. 15,’’ Andrew Mastrangelo, a spokesman for Dunkin Brands, wrote in an e-mail. He would not say whether Dunkin’ was covering any of the settlement.