Boon Insurance Agency Inc, The v. Lloyd

CourtDistrict Court, D. South Carolina
DecidedAugust 27, 2020
Docket3:20-cv-02980
StatusUnknown

This text of Boon Insurance Agency Inc, The v. Lloyd (Boon Insurance Agency Inc, The v. Lloyd) is published on Counsel Stack Legal Research, covering District Court, D. South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Boon Insurance Agency Inc, The v. Lloyd, (D.S.C. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF SOUTH CAROLINA COLUMBIA DIVISION

The Boon Insurance Agency, Inc., ) Civil Action No.: 3:20-cv-02980-JMC ) Plaintiff, ) v. ) ) ORDER AND OPINION Kelley Lloyd, ) ) Defendant. ) ___________________________________ )

Plaintiff The Boon Insurance Agency, Inc. filed this action against Defendant Kelley Lloyd seeking damages and injunctive relief based on claims for breach of contract, tortious interference with contractual relations, breach of the duty of loyalty, conversion, unjust enrichment, and specified violations of the South Carolina Trade Secrets Act (“SCTSA”), S.C. Code Ann. §§ 39- 8-10 to -130 (West. 2020), the South Carolina Unfair Trade Practices Act, S.C. Code Ann. §§ 39- 5-10 to -560 (West. 2020), the federal Computer Fraud and Abuse Act of 1986 (“CFAA”), 18 U.S.C. § 1030(a)–(h), and the federal Defend Trade Secrets Act of 20161 (“DTSA”), 18 U.S.C. § 1832–39. (ECF No. 1 at 11 ¶ 40–21 ¶ 128.) This matter is before the court to address Plaintiff’s Motion for Temporary Restraining Order (the “TRO Motion”) pursuant to the DTSA, the SCTSA, and Rule 65(b) of the Federal Rules of Civil Procedure. (ECF No. 5.) After full consideration of Plaintiff’s Motion, Complaint for Damages and Injunctive Relief, and all other matters presented, the court GRANTS Plaintiff’s TRO Motion. I. JURISDICTION The court has subject matter jurisdiction over this matter pursuant to 28 U.S.C. § 1332(a)

1 The DTSA amended various sections of the Economic Espionage Act of 1996, 18 U.S.C. §§ 1831–1839. based on Plaintiff’s allegations that the action is between citizens of different states and the amount in controversy exceeds the sum of $75,000.00. (See ECF No. 1 at 2 ¶¶ 6–8.) Plaintiff alleges that it is a Delaware company, with its principal place of business in Austin, Texas. (Id. ¶ 6.) Plaintiff further alleges that Defendant is a resident of Columbia, South Carolina. (Id. ¶ 6.) Moreover, after considering the Complaint’s allegations, the court is satisfied that the amount in controversy

exceeds $75,000.00, exclusive of interest and costs. (Id. ¶ 8; see also id. at 10 ¶ 37.) In addition to its jurisdiction under § 1332, this court also has subject matter jurisdiction over Plaintiff’s claims via 28 U.S.C. § 1331, as they arise under laws of the United States, and specifically via 18 U.S.C. § 1030(g), which creates a civil cause of action arising out of violations of CFAA’s provisions, and 18 U.S.C. § 1836, which creates a civil action for the owner of a misappropriated trade secret. The court may properly hear Plaintiff’s state law claims based on supplemental jurisdiction since these claims “are so related to claims in the action within such original jurisdiction that they form part of the same case or controversy . . . .” 28 U.S.C. § 1367(a). See also United Mine Workers of Am. v. Gibbs, 383 U.S. 715, 725 (1966) (finding supplemental

jurisdiction allows parties to append state law claims over which federal courts would otherwise lack jurisdiction to federal claims, so long as “[t]he state and federal claims . . . derive from a common nucleus of operative fact”); De La Rosa v. Reliable, Inc., 113 F. Supp. 3d 1135, 1152 (D.N.M. 2015) (“The court can then exercise supplemental jurisdiction over other claims and parties that ‘form part of the same case or controversy under Article III . . . .’” (citing 28 U.S.C. § 1367, United Mine Workers, 383 U.S. at 725)). II. RELEVANT BACKGROUND TO PENDING MOTION

In support of its TRO Motion, Plaintiff submitted the Declaration of Keith Stueler, its National Sales Director. (See generally ECF No. 5-1.) In pertinent part, Stueler’s Declaration establishes the following facts for purposes of Plaintiff’s TRO Motion: 1. Plaintiff “is a highly specialized wholesale provider of health and welfare benefit plans to government contractor employers.” (ECF No. 5-1 at 2 ¶ 4.) “Unlike most retail insurance services, [Plaintiff] provides wholesale services, meaning that it acts as an appointed representative of the carrier and acts as an intermediary for other insurance brokers . . . .” (Id. at 3 ¶ 4.)

2. Plaintiff hired Defendant “on March 17, 2017 as a Sr. Regional Sales Manager” and gave her responsibility “over the Virginia, North Carolina and South Carolina region.” (Id. at 3 ¶ 5.) Plaintiff was “responsible for managing and directly participating in significant sales efforts for [Defendant]’s clients, vendors and prospects in the region [and][] had access to confidential and trade secret information regarding all of [Plaintiff]’s clients, prospective clients, and vendors.” (Id. ¶ 6.) 3. In 2018, Plaintiff required Defendant to sign a Restrictive Covenant Agreement, which she did on September 1, 2018. (Id. at 4 ¶ 8 (referencing ECF No. 5-2 at 2–12).) In exchange, Defendant’s salary was guaranteed for a year and she gained additional access to “confidential and

trade secret information” and other “clients and prospects.” (Id.) 4. On January 15, 2020, Defendant signed Plaintiff’s 2020 Compensation Schedule Agreement, which “documented changes to [Defendant]’s compensation, bonuses and commissions and provided her additional compensation opportunities, value and benefits.” (Id. at 5 ¶ 14 (referencing ECF No. 5-3 at 2–7).) In exchange for Defendant signing the Compensation Schedule Agreement, Plaintiff provided Defendant “additional compensation opportunities, benefits and other value, including, but not limited to, the following: providing her access to additional confidential information (including updated client, prospect and vendor lists, and Blueprint – a proprietary marketing program/strategy); assigning her new clients and prospects; . . . .” (Id.) 5. On August 3, 2020, Defendant “forwarded significant confidential and trade secret information from her [work] e-mail account to her personal e-mail account.” (Id. at 6 ¶ 18; see also id. at 6 ¶ 18(a)–7 ¶ 18(f).) Later that same day, Defendant “submitted her two-week notice of resignation,” which Plaintiff declined making the end of Defendant’s employment immediate.

(Id. at 7 ¶ 18(f).) 6. Since her resignation, Defendant has used Plaintiff’s confidential business information to steal prospective clients, prospective client meetings, and other confidential and trade secret information from Plaintiff. (See ECF No. 5-1 at 8 ¶ 21–9 ¶.) As a result of Defendant’s actions, Plaintiff filed the instant action in this court on August 18, 2020, seeking injunctive relief and monetary damages. (ECF No. 1.) On August 19, 2020, Plaintiff filed the instant TRO Motion. (ECF No. 5.) III. LEGAL STANDARD

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

Related

United Mine Workers of America v. Gibbs
383 U.S. 715 (Supreme Court, 1966)
In re Microsoft Corporation Antitrust Litigation
333 F.3d 517 (Fourth Circuit, 2003)
Henry Pashby v. Albert Delia
709 F.3d 307 (Fourth Circuit, 2013)
Nucor Corp. v. Bell
482 F. Supp. 2d 714 (D. South Carolina, 2007)
Intelus Corp. v. Barton
7 F. Supp. 2d 635 (D. Maryland, 1998)
De La Rosa v. Reliable, Inc.
113 F. Supp. 3d 1135 (D. New Mexico, 2015)
De La Fuente v. South Carolina Democratic Party
164 F. Supp. 3d 794 (D. South Carolina, 2016)
Space Systems/Loral, LLC v. Orbital Atk, Inc.
306 F. Supp. 3d 845 (E.D. Virginia, 2018)

Cite This Page — Counsel Stack

Bluebook (online)
Boon Insurance Agency Inc, The v. Lloyd, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boon-insurance-agency-inc-the-v-lloyd-scd-2020.