Dunkin' Donuts Executive Settles With Starbucks

TIM KLASS

SEATTLE (AP) — 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 U.S. senior vice president who jumped ship to work for Dunkin' Donuts, has agreed to pay $500,000 to settle a lawsuit that accused him of violating a non-competition agreement, according a written statement issued late Tuesday by Stacey Krum, a spokeswoman for Starbucks.

Twohig also promised not to share Starbucks Corp. trade secrets or other confidential information with Dunkin' Donuts, 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 that the lawsuit had been settled and that 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 Wednesday. "We believe he will play a key role in helping us meet the needs of both our customers and our franchise community to continue our brands' growth and success.