Blue Compass RV LLC v. McFadden

District Court, D. Arizona·Decided January 16, 2025·No. 2:24-cv-03704·Unknown

Opinion

WO

Blue Compass RV LLC, No. CV-24-03704-PHX-KML

Plaintiff, ORDER

v.

Michael McFadden, et al.,

Defendants. Defendants Michael McFadden and Zachary LeDuc were previously employed by plaintiff Blue Compass RV LLC. In the last few months, McFadden and LeDuc left Blue Compass and formed a new company, Camper Capital, LLC, that competes with Blue Compass in the sale and installation of camper shells. McFadden still has possession of some of Blue Compass’s confidential information, although he claims he has not accessed that information since leaving. Blue Compass seeks a temporary restraining order and preliminary injunction that would, in effect, prohibit McFadden, LeDuc, and Camper Capital from conducting business. The present record does not establish Blue Compass is entitled to the early relief it seeks. I. Background1 Blue Compass describes itself as “the fastest-growing RV retail company in history.” (Doc. 1 at 3.) It has locations across the United States, including six in Arizona

1 Some of these facts are drawn from the complaint. That complaint is not verified, and its factual assertions would not be admissible in their current form. At this preliminary stage, however, the court may consider inadmissible evidence. See, e.g., Flathead-Lolo- Bitterroot Citizen Task Force v. Montana, 98 F.4th 1180, 1190 (9th Cir. 2024). and one in New Mexico. The locations are “full-service RV dealerships,” selling vehicles such as motorhomes. (Doc. 7 at 2.) The locations, including three in the Phoenix metropolitan area, also sell “new and used camper shells, truck bed covers, and truck caps,” which Blue Compass refers to collectively as “camper shells.” (Doc. 1 at 2.) Sometime in early 2024, Blue Compass hired Michael McFadden as its “Market Vice President – Southwest.” (Doc. 7 at 3.) In that role, McFadden had management responsibilities over the locations in Arizona and New Mexico. (Doc. 7 at 3.) On April 21, 2024, McFadden executed an “Employee Covenants Agreement.” For present purposes the crucial sections of that agreement are numbered two, four, five, and six.2 Section two of the agreement states McFadden was required to return any “confidential information” in his possession within five business days of the end of his employment. (Doc. 20-1 at 1-2.) The agreement defined “confidential information” as all information “of a private, secret, proprietary or confidential nature” concerning Blue Compass and its operations. (Doc. 20-1 at 1.) Section four of the agreement consists of an “Acknowledgment Regarding Company’s Business.” (Doc. 20-1 at 4.) That section identifies Blue Compass as “engaged in the selling, leasing, advertising, marketing, financing, storing, repairing and servicing of new and used Recreational Vehicles.” The section contains a special definition for “Recreational Vehicles”: “all brands and types of motorhomes, towable travel trailers, fifth wheels, toy haulers, pop-up campers, truck campers, tear drop trailers, and any other type of vehicle or trailer sold, leased or serviced by [Blue Compass].” (Doc. 20-1 at 4.) Section four also acknowledges Blue Compass “may engage in additional related businesses or in separate and distinct businesses from time to time.” (Doc. 20-1 at 4.) Section five of the agreement, titled “No Solicitation/No-Hire,” addresses both Blue Compass’s customers and employees. It provides that for 24 months after the end of his

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Blue Compass RV LLC v. McFadden, (D. Ariz. 2025).

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