Aspect Software, Inc. v. Barnett

787 F. Supp. 2d 118, 2011 U.S. Dist. LEXIS 103730, 2011 WL 2116441
CourtDistrict Court, D. Massachusetts
DecidedSeptember 14, 2011
DocketCivil Action 11-10754-DJC
StatusPublished
Cited by21 cases

This text of 787 F. Supp. 2d 118 (Aspect Software, Inc. v. Barnett) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aspect Software, Inc. v. Barnett, 787 F. Supp. 2d 118, 2011 U.S. Dist. LEXIS 103730, 2011 WL 2116441 (D. Mass. 2011).

Opinion

MEMORANDUM AND ORDER

CASPER, District Judge.

I. Introduction

Plaintiff Aspect Software, Inc. has sued Gary Barnett (“Barnett”), its former Executive Vice. President and Chief Technology Officer, alleging that Barnett breached his contract with Aspect Software when he accepted a position with a rival corporation. Aspect Software has moved for a preliminary injunction. For the reasons discussed below, Aspect Software’s motion is GRANTED.

II. Burden of Proof and Standard of Review

In ruling on a preliminary injunction, courts must state the factual findings or conclusions that support the court’s ruling. Fed.R.Civ.P. 52(a)(2). The burden of providing a factual basis sufficient to justify a preliminary injunction rests with the party seeking the injunction. Nieves-Marquez v. Puerto Rico, 353 F.3d 108, 120 (1st Cir.2003). Unless the parties’ competing versions of events are “in sharp dispute such that the ‘propriety of injunctive relief hinges on determinations of credibility,’ ” Rohm & Haas Elec. Materials, LLC v. Elec. Circuits Supplies, Inc., 759 F.Supp.2d 110, 117 (D.Mass.2010) (quoting Campbell Soup Co. v. Giles, 47 F.3d 467, 470 (1st Cir.1995)), the Court is free to accept as true “well-pleaded allegations [in the] complaint and uncontroverted affidavits.” Id. at 114 n. 2 (quoting Elrod v. Burns, 427 U.S. 347, 350 n. 1, 96 S.Ct. 2673, 49 L.Ed.2d 547 (1976)).

HI. Factual Background

a. Employment at Aspect

Aspect Software is a Delaware corporation formed in 2005 with its principal place of business in Massachusetts. Aspect Software develops, licenses and sells cus *122 tomer contact center products and services to customers around the world. Their products and services allow businesses to provide customer service, collections, sales and telemarketing directly to customers through contact centers. Aspect Software maintains substantial volumes of confidential information and trade secrets relating to its existing and potential customers and to the development of Aspect Software’s product line.

Barnett was the President and CEO of a telecommunications company called Aspect Communications. In 2005, Barnett’s company was acquired by Concerto Software and the two companies formed Aspect Software (hereinafter “Aspect”). On September 30, 2005, Aspect hired Barnett to be its Executive Vice President of Research and Development, Chief Technology Officer, and Executive Vice President of Global Support. Barnett served on Aspect’s Executive Management team and was one of the company’s four Executive Vice Px-esidents. Barnett’s job responsibilities at Aspect were described at length in the record, see Affidavit of Aspect’s Chief Executive Officer James Foy, D. 1-2, 44-45 at ¶ 17, 1 but to summarize, he was responsible for managing all aspects of the customer contact center business, including software and hardware development, technology standards, employee recraitment and retention, and customer relations, as well as general strategic and business management with regard to the customer contact center business. His home base was an Aspect office in Tennessee, but he also had an office at Aspect’s headquarters in Massachusetts.

Barnett signed an employment agreement (“Agreement”) with Aspect that contained a provision entitled “Noncompete; Non-Solicitation” at section seven. The provision included the following language:

(a) Employee acknowledges that Employee’s services to the Company require the use of information including a formula, pattern, compilation, program, device, method, technique, or process that the Company has made reasonable efforts to keep confidential and that derives independent economic value, actual or potential, from not being generally known to the public or to other persons who can obtain economic value from its disclosure or use (“Trade Secrets”). Employee further acknowledges and agrees that the Company would be irreparably damaged if Employee were to provide similar services requiring the use of [the Company’s] Trade Secrets to any person or entity competing with the Company or engaged in a similar business. Therefore, Employee agrees that during the Employment Period and duxdng the twelve (12) month period immediately thereafter (the “Protection Period”), he or she will not, either directly or indirectly, for himself or herself or any other person or entity ... (iv) Participate in any business in which he would be reasonably likely to employ, reveal, or otherwise utilize Trade Secrets used by the Company prior to the Executive’s termination in any geographical area in which the Company or any of its affiliates conducts business. “Participate” includes any direct or indirect interest in any enterprise, whether as officer, director, employee ... [or] executive....

The Agreement also included the following px'ovision, titled “Choice of Law,” at section 17:

All issues and questions concerning the construction, validity, enforcement and interpretation of this Agreement and the schedules hereto shall be governed by, and construed in accordance with, the *123 laws of the Commonwealth of Massachusetts, without giving effect to any choice of law or conflict of law rules or provisions (whether of the Commonwealth of Massachusetts or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the Commonwealth of Massachusetts.

During the course of his employment, Barnett generated and was given access to information Aspect’s complaint describes as trade secrets, including 1) strategic decisions concerning Aspect’s “roadmap” for future technological advancement, 2) the design of Aspect’s flagship “Unified IP” product and the timeline for its release to the public, 3) details of the relationship between Aspect and the Microsoft corporation as to both technical and strategic matters, 4) the internal structure of Aspect products’ components as well as the strengths and weaknesses of individual components, 5) negotiations between Aspect and Aspect’s clients, 6) marketing strategies and specific customer targeting objectives, 7) Aspect products’ ability to deploy across multiple servers, 8) the interfaces used to connect Aspect products to third-party products, 9) functionality, strengths and weaknesses of Aspect products, 10) cloud computing technology strategies, 11) Aspect’s use of Microsoft’s SQL server for reporting and analytics and plans for future use, 12) Aspect’s use of other Microsoft software and platforms, and 13) Aspect’s research and development budgets and resources, including the quality of Aspect’s individual employees and Aspect’s fiscal constraints.

B. Employment at Avaya

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Bluebook (online)
787 F. Supp. 2d 118, 2011 U.S. Dist. LEXIS 103730, 2011 WL 2116441, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aspect-software-inc-v-barnett-mad-2011.