Akibia, Inc. v. Hood

31 Mass. L. Rptr. 489
CourtMassachusetts Superior Court
DecidedOctober 9, 2012
DocketNo. SUCV201202974F
StatusPublished
Cited by1 cases

This text of 31 Mass. L. Rptr. 489 (Akibia, Inc. v. Hood) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Akibia, Inc. v. Hood, 31 Mass. L. Rptr. 489 (Mass. Ct. App. 2012).

Opinion

Locke, Jeffrey A., J.

On August 6, 2012, the plaintiff, Akibia, Inc., filed this action for preliminary and permanent injunctive relief and damages against the defendants, Jeffery Hood, Ryan Gavigan, and Charles Krueger, former employees of Akibia. Akibia is seeking to enforce an employee invention, non-disclosure, and non-solicitation agreement that it had with each defendant. The defendants are currently employed by IOvations, which according to Akibia, is a competitor.

Akibia has filed a motion for a preliminary injunction. The defendants have each filed separate written oppositions and affidavits. The parties have also filed reply memoranda. On August 14, 2012, this Court held a hearing on Akibia’s motion. For the following reasons, Akibia’s motion for a preliminary injunction is DENIED.

BACKGROUND

The facts as revealed by the pleadings and the materials submitted by the parties are as follows. Akibia is an information technology company based in Westborough, Massachusetts that provides infrastructure management solutions to its customers. Akibia partners with original equipment manufacturers (OEM) and provides independent advice to its customers on how they can optimize, secure, and manage their information technology infrastructures. Akibia markets its products and services in several different categories, including Network and Security Services (NSS) and Data Center Services (DCS). In 2002, Akibia acquired all of the assets of the networking and security hardware and software business of Interliant, Inc. After this acquisition, Akibia began marketing NSS offerings to its customers.

The defendants are former employees of Akibia. They held senior sales positions when they left the company. The plaintiff has attached employee invention, non-disclosure, and non-solicitation agreements to its complaint that each defendant signed in connection with his employment at Akibia. Hood signed and dated the agreement on August 21, 2002; Gavigan signed and dated his agreement on August 21, 2002; and Krueger signed and dated his agreement on July 17, 2006. Each agreement provides in part that:

3. I agree that during the term of this Agreement, and for a period of one (1) year thereafter, I will not directly or indirectly, alone or in association with any other person, corporation, firm or business, solicit from any customer or prospective customer of Akibia any business competitive to Akibia. In addition, I shall not seek subsequent employment from, act as a consultant or advisor to, nor create any entity in competition with Akibia. The above notwithstanding, should my employment with Aki-bia cease pursuant [to] a reduction in force, the non-competition provision hereof shall be null and void. Should any term of this non-solicitation/non-competition clause be determined by a competent court to be unenforceable due to the scope hereof, then the parties agree that it is their desire that said court be empowered to reform this clause such that it is enforceable under the circumstances.
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5. During my employment and for a period of one year thereafter, I shall not hire or employ, directly or indirectly through any enterprise with which I am associated, any employee or consultant of Aki-bia, or recruit, solicit or induce (or in any way assist another person or enterprise in recruiting, soliciting or inducing) any employee or consultant of Akibia to terminate his or her employment or other relationship with Akibia.
6.1 agree to disclose the existence and terms of this Agreement to any prospective employer, partner or co-venturer prior to entering into any employment, partnership or other business relationship with such person or entity.
7. I acknowledge and agree that any breach by me of the provisions of Section 2, 3 or 4 of this Agreement will result in irreparable injury to Akibia and that a remedy at law, alone, will be an inadequate remedy for such breach and that, in addition to any other remedy Akibia may have, Akibia will be entitled to enforce the specific performance of this Agreement by me and to seek both temporary and permanent injunctive relief without the necessity of proving actual damages.
8.(a) I agree that if any portion or provision of this Agreement shall, to any extent, be declared illegal or unenforceable by a court of competent jurisdiction, then the court may amend such portion or provision so as to comply with the law in a manner consistent with the intention of this Agreement, and each portion and provision of this Agreement will be valid and enforceable to the fullest extent permitted by the law.
(b) I further understand and agree that my obligation under this Agreement will continue after my employment ends, regardless of reason, and will continue regardless of any changes in my title, position, duties, compensation or other terms and conditions of employment.
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10. This Agreement shall be deemed to be made and entered into in the Commonwealth of Massachusetts, and shall in all respects be interpreted, enforced and governed under the laws of the Commonwealth without regard to its conflict of laws [491]*491provision. The parties hereto voluntarily submit themselves to the exclusive jurisdiction of the courts of the Commonwealth of Massachusetts with respect to any action to remedy any breach or to otherwise enforce the terms and conditions of this Agreement.

Hood’s Affidavit

Hood has attached a nine-page affidavit dated August 11,2012 to his written opposition. In his affidavit, Hood describes his former employment relationship with Akibia. Hood has specialized in the sale of NSS products throughout his entire professional career, 1992 to 2012. From 1999 to 2002, he worked for Interliant in NSS sales. In 2002, Akibia purchased Interliant, and according to Hood, his superiors required him to sign an employee invention, non-disclosure, and non-solicitation agreement. Akibia did not give Hood an increase in compensation in exchange for signing the agreement. From August of 2002 to March of 2006, Hood worked for Akibia as a sales representative. He worked directly with clients and sold NSS offerings.

In April of 2006, he was promoted to the position of sales team leader, and as a result of this promotion, Hood was responsible for managing seven sales representatives. Akibia also changed Hood’s sales targets in that he would be responsible for securing “renewal” business and “new” business in addition to his personal goal. Prior to the promotion, Hood was only responsible for his personal goal. Moreover, Hood’s compensation structure changed as a result of the promotion. He received additional income of approximately $62,000 from team incentive compensation commissions. Hood did not sign a new non-compete agreement following the promotion.

In August of 2006, Hood was promoted to regional sales manager. As a result of this change, he no longer worked directly with clients, but he was required to meet and coach sales teams throughout New England, establish relationships, plan more directly with Akibia’s partners, and travel to industry events to represent Akibia. Hood also became responsible for conducting business and personnel reviews, hiring and firing sales staff, coordinating training, and developing business strategies. Hood’s compensation plan changed, and Akibia increased his sales target goals.

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Bluebook (online)
31 Mass. L. Rptr. 489, Counsel Stack Legal Research, https://law.counselstack.com/opinion/akibia-inc-v-hood-masssuperct-2012.