Anaqua, Inc. v. Bullard

33 Mass. L. Rptr. 106
CourtMassachusetts Superior Court
DecidedJuly 24, 2014
DocketNo. SUCV201401491BLS1
StatusPublished

This text of 33 Mass. L. Rptr. 106 (Anaqua, Inc. v. Bullard) 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
Anaqua, Inc. v. Bullard, 33 Mass. L. Rptr. 106 (Mass. Ct. App. 2014).

Opinion

Billings, Thomas P., J.

The plaintiff (“Anaqua”) has sued its former employee (“Bullard”) and his new employer (“Lecorpio”) to enforce a letter agreement of employment (“Letter Agreement”) and a “Proprietary Information, Non-Competition and Inventions Agreement” (“Inventions Agreement”) into which Anaqua and Bullard entered on February 1, 2008. The Complaint is in three counts: Count 1 (“Breach of Contract Against Mr. Bullard (Competition)”); Count 2 (“Breach of Contract Against Mr. Bullard (Trade Secrets)”); and Count 3 (“Tortious Interference With Contractual Relations Against Lecorpio”).

Before me are cross motions, of a sort: the plaintiffs request for preliminary injunction (Prayers A and B of the Complaint), and the defendants’ Motion to Dismiss (Paper #20). Anaqua’s entitlement to injunctive relief being largely dependent on the merits of its claims, I have considered these in reverse order.

For the reasons that follow, the Motion to Dismiss is ALLOWED as to Lecorpio but DENIED as to Bullard, and the Motion for Preliminary Injunction is ALLOWED as to Bullard.

MOTION TO DISMISS A. Allegations of the Complaint

The Complaint alleges the following facts, among others, which are hereby taken as true for present purposes. I have additionally taken note of the terms of the Letter Agreement and the Inventions Agreement, which are referenced and quoted in substantial part in the Complaint.1 Bullard signed the Letter Agreement and the Inventions Agreement on or about February 1, 2008, and began work as Anaqua’s Business Development Director. The Inventions Agreement included the following terms:

Bullard agreed to hold in confidence, and not to use except in his work for Anaqua, the company’s proprietary information, and agreed that documents belonging to the company would be returned to it upon request. (¶¶1, 2, 3.)
There were provisions for inventions not at issue here. (¶¶4, 5, 6, 7, 8.)
There was a non-competition and non-solicitation clause with a duration of twelve months after Bullard left Anaqua’s employ, by which Bullard agreed not to participate, as employee, contractor, officer, director, or equityholder, in “any business which is competitive, directly or indirectly, with the business of the Company anywhere in the world,” and not to solicit its employees (etc.) or its actual or prospective clients or customers. (819.)
There was the standard acknowledgment of enforceability through injunctive relief, and the employer’s right to attorneys fees if it came to that. (¶10.)
Bullard acknowledged:
that my responsibilities, duties, positions, compensation, title and/or other terms and conditions of employment may change from time to time or I may have a break in service or employment with the Company and, notwithstanding any change in any terms and conditions of employment or a break in service or employment, this Agreement shall remain in full force and effect. (¶12 fill).)
And finally:
The provisions of this Agreement are sever-able. If any term or provision hereof (or the application thereof) is held invalid or unenforceable for any reason, the remaining provisions [108]*108shall not be affected but rather shall remain in full force and effect and shall be enforced to the fullest extent permitted by law. The laws of the Commonwealth of Massachusetts shall govern the interpretation, validity and effect of this Agreement without regard to the place of performance thereof or principles of choice of law. I hereby agree that any and all suits regarding this agreement shall be brought in [sic] solely and exclusively in the Commonwealth of Massachusetts and I hereby consent to the jurisdiction of the state or federal courts of the Commonwealth of Massachusetts. (¶14.)

While employed by Anaqua, Bullard came into possession of its proprietary and confidential information and trade secrets, including “client lists, prospective client lists, knowledge of Anaqua’s pricing methods, Anaqua’s pricing to current customers, knowledge of Anaqua’s negotiations with and offers to prospective clients, product development roadmaps, and corporate strategy plans.”

Bullard left Anaqua on September 20, 2013, telling Anaqua “that he intended to write books.”2 On April 28, 2014, however, Anaqua learned through a Linked-In posting that he had accepted employment at Lecorpio. Anaqua sent Bullard a cease-and-desist letter the next day, but two days after that, Lecorpio issued a press release announcing that

Mark Bullard has also joined Lecorpio’s team as vice president of product management. In this role Mark will help drive Lecorpio’s customer driven product strategy. Prior to joining Lecorpio, Mark was vice president of sales for Lecorpio competitor Anaqua.

Anaqua alleges that in Bullard’s work for Lecorpio, he will inevitably disclose and use Anaqua’s confidential information. It adds, on information and belief, that Lecorpio knew of Bullard’s post-employment restrictions and induced him to breach them.

In its Motion to Dismiss, Lecorpio has grouped its arguments under four headings: Personal Jurisdiction, Forum Non Conveniens, Choice of Law, and Failure to State a Claim, and they are here discussed in that order. Both sides, in connection with their arguments as to personal jurisdiction and forum non conveniens, have come forward with additional facts, which are summarized as necessary below.

B. Personal Jurisdiction

On a motion to dismiss for lack of personal jurisdiction pursuant to rule 12(b)(2), “the plaintiff] ] bear[s] the burden of establishing sufficient facts on which to predicate jurisdiction over the defendant.” For purposes of reviewing the ruling on the motion to dismiss, (the Court is to] accept as true assertions in the plaintiffs affidavit[s], including any which controvert assertions in the defendant’s affidavits].

Diamond Group, Inc. v. Selective Distribution Intern., Inc., 84 Mass.App.Ct. 545, 548 (2013) (citations omitted).

The defendants’ affidavits aver the following. While he worked for Anaqua, Bullard was a resident of the state of Washington. Anaqua hired him as Business Development Director, in which position he sold An-aqua products and services to customers in the western United States. He had no management responsibilities and received commissions only on sales that he made. In 2011, Bullard was promoted to Vice President of Sales. Now, he was in charge of a five-member sales team that sold Anaqua products across North America, and was a member of the company’s Executive Team, which addressed company-wide issues. He was compensated based partly on his team’s sales performance and in part based on the performance of the company as a whole. He did not, at the time of the promotion, renew the terms of the Inventions Agreement or execute any other agreement relating to post-employment restraints.

Bullard left Anaqua on September 20, 2013. He began work with Lecorpio in late April 2014, working out of its headquarters in Fremont, California.

Lecorpio has no offices or employees in Massachusetts. It conducts on-line advertising directed nationally and participates in national trade shows that attract attendees from all over the company.

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Bluebook (online)
33 Mass. L. Rptr. 106, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anaqua-inc-v-bullard-masssuperct-2014.