Apollo Holding Company, LLC v. Cliff Roe

CourtDistrict Court, E.D. Louisiana
DecidedMay 22, 2025
Docket2:24-cv-02773
StatusUnknown

This text of Apollo Holding Company, LLC v. Cliff Roe (Apollo Holding Company, LLC v. Cliff Roe) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Apollo Holding Company, LLC v. Cliff Roe, (E.D. La. 2025).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA

APOLLO HOLDING COMPANY, LLC, et al. CIVIL ACTION

VERSUS NO. 24-2773

CLIFF ROE, et al. SECTION M (3)

ORDER & REASONS Before the Court are motions to dismiss for lack of personal jurisdiction pursuant to Federal Rule of Civil Procedure 12(b)(2), improper venue pursuant to Rule 12(b)(3), and failure to state a claim pursuant to Rule 12(b)(6) filed by each of defendants Cliff Roe,1 Bohr Energy, LLC (“Bohr Energy”),2 and Kevin Pavlov3 (collectively, “Defendants”). Plaintiffs Apollo Holding Company, LLC (“Apollo”) and GAPS Technology, LLC (“GAPS”) (together, “Plaintiffs”) respond in opposition to each,4 and Defendants reply in further support of their motions.5 Having considered the parties’ memoranda, the record, and the applicable law, the Court issues this Order & Reasons. I. BACKGROUND This case involves claims of fraudulent inducement, breach of contract, and unfair trade practices. Apollo is a Delaware LLC authorized to conduct business in Louisiana and its members are Louisiana citizens.6 GAPS is a Louisiana LLC wholly owned by Apollo.7 Roe and Pavlov are Michigan residents and the members of Bohr Energy, a Florida LLC with its principal place of business in Michigan.8

1 R. Doc. 15. 2 R. Doc. 16. 3 R. Doc. 17. 4 R. Docs. 21 (opposing Roe’s motion); 22 (opposing Pavlov’s motion); 23 (opposing Bohr Energy’s motion). 5 R. Docs. 31 (Roe’s reply); 32 (Bohr Energy’s reply); 33 (Pavlov’s reply). 6 R. Doc. 2-1 at 1. 7 Id. at 1, 3. 8 R. Docs. 2-1 at 1; 16-1 at 7; 16-3 at 1. Roe was hired by Apollo’s predecessor-in-interest, Apollo Petroleum Solutions, LLC (“APS”) in 2016.9 On January 29, 2016, Roe executed an employment agreement (the “Employment Agreement”) with APS in Covington, Louisiana.10 As part of the Employment Agreement, Roe agreed to sell[] all of [his] equipment, demo units, devices, applications, intellectual property, patents pending and other property whether related to the Advanced Separation Gas Infusion System, which [Roe] developed, or otherwise. This conveyance specifically includes all of [Roe’s] property and systems [then] currently in development and developed in the future, whether the Gas Infusion System or any other related or unrelated technology. This conveyance also includes any use [then] currently known or unknown for the intellectual property conveyed.11

In 2017, Roe relocated from Michigan to Slidell, Louisiana, to work in APS’s laboratory in Picayune, Mississippi.12 Thereafter, APS underwent a corporate restructuring to form Apollo, which assumed all of APS’s obligations to Roe under the Employment Agreement,13 including paying for Roe’s living expenses in Louisiana.14 As part of its restructuring, APS conveyed to GAPS all rights, titles, and interests it acquired from Roe under the Employment Agreement, and GAPS licensed all of its intellectual property to Apollo.15 Plaintiffs also allege that “Roe executed further assignments over the years that assigned provisional patents and applications to GAPS, which was, in turn, subject to the licensing arrangement between GAPS and Apollo.”16 In 2023, AlumaPower Corporation (“AlumaPower”) became interested in Apollo’s technology. AlumaPower sent Pavlov to meet with Roe at Apollo’s Mississippi laboratory on April 18, 2023, to discuss a possible business relationship with Apollo.17 On January 18, 2023,

9 R Doc. 2-1 at 2. 10 Id.; R. Docs. 15-1 at 7; 21 at 8; 21-1 at 1. See infra note 74. 11 R. Doc. 15-4 at 2. 12 R. Docs. 21 at 3; 21-1 at 1. 13 R. Doc. 2-1 at 3. 14 R. Docs. 15-4 at 1; 21-1 at 2. 15 R. Doc. 2-1 at 3. 16 Id. 17 Id.; R. Doc. 15-1 at 12. before meeting with Roe, Pavlov had signed a nondisclosure agreement (the “First NDA”) with Apollo.18 On April 17, 2023, the day before Roe and Pavlov’s meeting, AlumaPower, through its CEO, signed another NDA with Apollo (the “Second NDA”).19 No business arrangement between Apollo and AlumaPower resulted from Roe and Pavlov’s April 18, 2023 meeting.20 Roe voluntarily ended his employment with Apollo on July 31, 2023.21 Plaintiffs allege

that Roe told them he was retiring due to his poor health.22 Roe and Plaintiffs executed a voluntary separation agreement (the “Separation Agreement”) on March 29, 2024.23 Plaintiffs allege that their agreement to the terms of the Separation Agreement was induced by Roe’s representation that he would be retiring from the oil and gas industry.24 However, on May 13, 2024, Roe and Pavlov formed Bohr Energy.25 In September of 2024, Roe and Plaintiffs amended the Separation Agreement to modify Plaintiffs’ payment obligations to Roe (the “Amendment”).26 Plaintiffs allege that “Roe continued to maintain that he was staying out of the oil and gas treatment industry” and they relied on that representation when agreeing to the Amendment.27 On November 1, 2024, Plaintiffs brought this action in the 22nd Judicial District Court of

St. Tammany Parish, Louisiana, asserting a fraudulent-inducement claim against Roe, breach-of- contract claims against Roe and Pavlov, and claims under the Louisiana Unfair Trade Practices

18 R. Docs. 2-1 at 4; 17-10. The First NDA included a forum-selection clause stating that: The [p]arties hereby irrevocably and unconditionally submit to the exclusive jurisdiction of the state and federal district courts which govern the Parish of St. Tammany, State of Louisiana, and waive any objection to forum or venue and agree to accept service of process by mail in any action arising out of this Agreement. R. Doc. 17-10 at 7. 19 R. Doc. 17-11. The Second NDA has a Delaware forum-selection clause. Id. at 5. 20 R. Doc. 15-1 at 12. 21 R. Doc. 2-1 at 4. 22 Id. 23 R. Doc. 15-7. 24 R. Doc. 2-1 at 6. 25 R. Doc. 15-1 at 13. 26 R. Docs. 2-1 at 4; 15-8. 27 R. Doc. 2-1 at 5. Act, La. R.S. 51:1401-1430 (“LUTPA”), against all three Defendants.28 Plaintiffs allege that Roe falsely represented “that he was retiring when, in fact, he was actively competing against [Plaintiffs and] intended for this misrepresentation to induce [them] to agree to” the Separation Agreement and the Amendment;29 that Roe breached the Employment Agreement, as well as the Separation Agreement and Amendment (assuming they are not rescinded due to fraudulent inducement), by

using the intellectual property that he transferred to Plaintiffs without their authorization;30 that Pavlov breached the First NDA by “using the disclosed, proprietary information and intellectual property to compete against Apollo” through Bohr Energy;31 and that Roe and Pavlov “actively engaged in fraudulent conduct to … receive benefits from [Plaintiffs and] misuse proprietary information that [Plaintiffs] ha[ve] exclusive ownership interests in,” with Bohr Energy benefitting from, and participating in, this “misuse” of Plaintiffs’ proprietary information, all in violation of LUTPA.32 Defendants removed this case to this Court on November 27, 2024,33 and now move to dismiss all of Plaintiffs’ claims against them.

II. LAW & ANALYSIS A. Legal Standards 1. Rule 12(b)(2) Standard “As a general rule, when the court is confronted by a motion raising a combination of Rule 12(b) defenses, it will address the jurisdictional issues before considering whether a claim was stated by the complaint, although there is no requirement that jurisdictional issues be considered in a particular order.” 5B CHARLES ALAN WRIGHT, ARTHUR R. MILLER & A. BENJAMIN SPENCER,

28 Id. at 5-8. 29 Id. at 5-6 (quotes at 6). 30 Id. at 6-7. 31 Id. at 7. 32 Id. 33 R. Doc. 2. FEDERAL PRACTICE AND PROCEDURE § 1351, at 244-46 (4th ed. 2024). Therefore, the Court will first consider whether it has personal jurisdiction over Defendants. Federal Rule of Civil Procedure

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

Related

Kevlin Services, Inc. v. Lexington State Bank
46 F.3d 13 (Fifth Circuit, 1995)
Williams v. WMX Technologies, Inc.
112 F.3d 175 (Fifth Circuit, 1997)
Wien Air Alaska, Inc. v. Brandt
195 F.3d 208 (Fifth Circuit, 1999)
Collins v. Morgan Stanley Dean Witter
224 F.3d 496 (Fifth Circuit, 2000)
Religious Technology Center v. Liebreich
339 F.3d 369 (Fifth Circuit, 2003)
Kitty Hawk Aircargo, Inc. v. Chao
418 F.3d 453 (Fifth Circuit, 2005)
Dorsey v. Portfolio Equities, Inc.
540 F.3d 333 (Fifth Circuit, 2008)
United States Ex Rel. Grubbs v. Kanneganti
565 F.3d 180 (Fifth Circuit, 2009)
Lone Star Fund v (U.S.), L.P. v. Barclays Bank PLC
594 F.3d 383 (Fifth Circuit, 2010)
International Shoe Co. v. Washington
326 U.S. 310 (Supreme Court, 1945)
Conley v. Gibson
355 U.S. 41 (Supreme Court, 1957)
Shaffer v. Heitner
433 U.S. 186 (Supreme Court, 1977)
World-Wide Volkswagen Corp. v. Woodson
444 U.S. 286 (Supreme Court, 1980)
Burger King Corp. v. Rudzewicz
471 U.S. 462 (Supreme Court, 1985)
Ruhrgas Ag v. Marathon Oil Co.
526 U.S. 574 (Supreme Court, 1999)
Tellabs, Inc. v. Makor Issues & Rights, Ltd.
551 U.S. 308 (Supreme Court, 2007)
Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)

Cite This Page — Counsel Stack

Bluebook (online)
Apollo Holding Company, LLC v. Cliff Roe, Counsel Stack Legal Research, https://law.counselstack.com/opinion/apollo-holding-company-llc-v-cliff-roe-laed-2025.