Amedisys Holding, LLC v. Interim Healthcare of Atlanta, Inc.

793 F. Supp. 2d 1302, 2011 U.S. Dist. LEXIS 59260, 2011 WL 2182720
CourtDistrict Court, N.D. Georgia
DecidedJune 3, 2011
Docket1:11-cv-1437-WSD
StatusPublished
Cited by7 cases

This text of 793 F. Supp. 2d 1302 (Amedisys Holding, LLC v. Interim Healthcare of Atlanta, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Amedisys Holding, LLC v. Interim Healthcare of Atlanta, Inc., 793 F. Supp. 2d 1302, 2011 U.S. Dist. LEXIS 59260, 2011 WL 2182720 (N.D. Ga. 2011).

Opinion

OPINION AND ORDER

WILLIAM S. DUFFEY, JR., District Judge.

This matter is before the Court on Amedisys Holding, LLC’s Motion for a Preliminary Injunction [25] and Motion for Leave to File Supplemental Exhibits in Support of its Motion for Preliminary Injunction [35]. The Court, having considered the memorandum submitted by the parties, as well as the arguments of counsel and testimony presented at the May 23, 2011, hearing on Plaintiffs injunction motion, now considers Plaintiffs request for preliminary injunctive relief.

I. BACKGROUND

Plaintiff Amedisys Holding, LLC (“Amedisys”) and Defendant Interim Healthcare of Atlanta, Inc. (“Interim”) compete in providing home healthcare and hospice services. They each employ sales representatives who meet with doctors and other healthcare practitioners to encourage those clinicians to refer patients in need of home healthcare and hospice services. On April 18, 2011, three Amedisys sales representatives, Defendants Jennifer Mack (“Mack”), Brenda Hogan (“Hogan”), and Denise Cathey (“Cathey”) (collectively the “Individual Defendants”), resigned from Amedisys to begin employment at Interim. Amedisys alleges that the Individual Defendants took confidential and trade-secret materials before they left and have used those materials at Interim.

The trade-secret materials at issue in this case are known as the “Referral Logs” and the “Workbook.” The Referral Logs are a resource to track patient referrals. They contain detailed information regarding current and prospective patients. Amedisys employees use the Referral Logs to target their sales efforts to particular clinicians and facilities most likely to refer patients to Amedisys. 1 This allows their employees to concentrate their marketing efforts on the clinicians most likely to generate business for Amedisys. The Workbook is a short document that contains doctor referral statistics and other industry metrics. It ranks doctors within a particular geographic area based on the number of home healthcare and hospice referrals each doctor issues. 2 Amedisys employees use the Workbook to target certain doctors who frequently refer patients for home healthcare and hospice services. Amedisys claims that it treats and maintains both the Referral Logs and the Workbook as trade secrets.

On April 12, 2011, six days before she left Amedisys, Defendant Mack sent a copy of the Referral Logs from her Amedisys email account to her personal email *1306 account. These particular Referral Logs contained information on over 1,200 patients from several geographic areas, including areas in which Mack did not work as an Amedisys employee. Amedisys further alleges that Mack provided the Referral Logs to Defendant Cathey. On April 18, 2011, the day she left Amedisys, Defendant Hogan failed to return a copy of the Workbook before beginning her employment with Interim.

In the days after the Individual Defendants left Amedisys, several Amedisys employees saw the Individual Defendants soliciting business at local hospitals and patient care centers. Amedisys contends that the Individual Defendants have and continue to use the Referral Logs and the Workbook to compete against Amedisys at their new employer Interim.

On May 4, 2011, Plaintiff filed the Complaint in this action, alleging that the Individual Defendants and Interim (collectively “Defendants”) took Amedisys’ trade secrets to unfairly compete in the provision of healthcare and hospice services. The Complaint lists eight causes of action, including: (1) violation of the Stored Communications Act, 18 U.S.C. §§ 2701, 2707; (2) violation of the Computer Fraud and Abuse Act, 18 U.S.C. § 1030; (3) misappropriation of trade secrets, O.C.G.A. § 10-1-760 et seq.; (4) Computer Theft and Computer Invasion of Privacy, O.C.G.A. § 16-9-93; (5) breach of fiduciary duty and employee duty of loyalty; (6) tortious interference with business relations; (7) trover/conversion of corporate property and assets; and (8) breach of contract. 3 The Complaint also sought injunctive relief, specifically, an order prohibiting the Defendants from using Plaintiffs confidential, proprietary, and trade-secret information.

Plaintiff also sought a Temporary Restraining Order (“TRO”) requiring (1) the Defendants to return any Amedisys trade secret materials they had in their possession or to which they had access; (2) the Defendants to submit to a forensic audit of their computer systems; and (3) prohibiting the Individual Defendants from soliciting business on behalf of Interim. Defendants opposed the motion on several grounds. In support of their opposition, Mack and Hogan submitted declarations, made under oath, to the Court.

In her declaration, Mack admitted to sending herself a copy of the Referral Logs on April 12, 2011, but claimed that she did not do so with the intention of using it at Interim. Mack stated that:

• She sent copies of the Referral Logs to her personal email address “in the ordinary course of business almost every month for years” and she sent the April 12, 2011, email as part of her standard working practice, not as an attempt to steal the Referral Logs before leaving Amedisys (Mack Deck at 2);
• the “purpose of sending these e-mails was to open [the Referral Logs] on my home computer so that I could add to the logs patients who had been referred during the previous month, an action I was required to do by Amedisys” (id.)] and
• the Referral Logs would not help her at Interim because she had worked with the same clinicians for years, knew them well, and knew who to contact to solicit business without using the Referral Logs. (Id. at 3.)

*1307 Hogan stated in her Declaration that she did not intentionally take the Workbook from Amedisys and she simply forgot to return it when she left. (Hogan Deck ¶ 5.) Hogan also stated that the Workbook would not help her at Interim because she knew the contents of the Workbook by heart. (Id. ¶ 3.)

On May 6, 2011, the Court held a hearing on Plaintiffs Motion for a TRO. Counsel for the Individual Defendants explained to the Court that the Individual Defendants “represented in their declarations and they’ve affirmed here today that whatever they have was inadvertently maintained and they are willing to delete it and return it and they certainly haven’t used or disclosed it, provided it to Interim Healthcare. They don’t need it, they don’t want it. It doesn’t help them in their business.” (Tr. [32] at 19.) Based on these representations, the Court denied Plaintiffs request to temporarily restrain the Individual Defendants from soliciting business from clinicians.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Datto, Inc. v. Moore
M.D. Florida, 2020
Priority Payment Systems, LLC v. Signapay, Ltd.
161 F. Supp. 3d 1294 (N.D. Georgia, 2016)
Aquent LLC v. Mary Stapleton & Italent LLC
65 F. Supp. 3d 1339 (M.D. Florida, 2014)
David A. Bovino P.C. v. MacMillan
28 F. Supp. 3d 1170 (D. Colorado, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
793 F. Supp. 2d 1302, 2011 U.S. Dist. LEXIS 59260, 2011 WL 2182720, Counsel Stack Legal Research, https://law.counselstack.com/opinion/amedisys-holding-llc-v-interim-healthcare-of-atlanta-inc-gand-2011.