Chazz Clevinger v. Advocacy Holdings, Inc.

134 F.4th 1230
CourtCourt of Appeals for the D.C. Circuit
DecidedApril 25, 2025
Docket23-7116
StatusPublished
Cited by8 cases

This text of 134 F.4th 1230 (Chazz Clevinger v. Advocacy Holdings, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chazz Clevinger v. Advocacy Holdings, Inc., 134 F.4th 1230 (D.C. Cir. 2025).

Opinion

United States Court of Appeals FOR THE DISTRICT OF COLUMBIA CIRCUIT

Argued September 26, 2024 Decided April 25, 2025

No. 23-7116

CHAZZ CLEVINGER, APPELLEE

v.

ADVOCACY HOLDINGS, INC., D/B/A ONECLICKPOLITICS, APPELLANT

RAYMOND ZENKICH, ET AL., APPELLEES

Appeal from the United States District Court for the District of Columbia (No. 1:23-cv-01159)

Anand Vijay Ramana argued the cause for appellant. With him on the briefs was Lyndsey Marie Wajert.

Kenneth E. Chase argued the cause and filed the brief for appellee.

Before: PILLARD and WALKER, Circuit Judges, and GINSBURG, Senior Circuit Judge.

Opinion for the Court filed by Circuit Judge WALKER. 2

WALKER, Circuit Judge: Advocacy Holdings sued its former CEO for breach of a noncompete agreement. The district court partially denied Advocacy’s motion for a preliminary injunction, holding that Advocacy had not established a likelihood of irreparable harm. We affirm.

I. Background

Advocacy Holdings helps clients influence public policy. Among its tools is an online platform called OneClickPolitics. The platform connects a client’s supporters to legislators and other policymakers through emails, social media, and telephone calls. Who We Are, OneClickPolitics, https://perma.cc/D6CS-ALE6; Testimoni- als, OneClickPolitics, https://perma.cc/AV4A-W7WR.

In 2016, Advocacy made Chazz Clevinger its Vice President. Later, it promoted him to CEO. After that, Clevinger signed an employment agreement, which includes a noncompete provision. It provides that when Clevinger’s employment ends, he cannot compete with Advocacy for one year, cannot solicit its customers for one year, and cannot use its confidential information for five years. The agreement also contains a stipulation that Advocacy will suffer “irreparable harm” if Clevinger “violates any of the restrictions or obligations set forth.” JA 74.

In 2023, Clevinger resigned and — according to Advocacy — flagrantly violated the noncompete agreement. He allegedly stole Advocacy’s customer list, started two competing businesses, solicited Advocacy’s customers, falsely told them Advocacy was closing its lobbying services, and created a near duplicate of a soon-to-be-released version of Advocacy’s OneClickPolitics platform. Advocacy says that 3 Clevinger even replicated OneClickPolitics’ typos on his new platform.

Advocacy sued Clevinger for breach of the noncompete agreement. It moved to preliminarily enjoin Clevinger’s alleged conduct. But the district court denied the motion, holding that Advocacy had not established that it would suffer irreparable harm absent injunctive relief.

Advocacy moved for reconsideration, attaching additional evidence that it says shows how Clevinger copied OneClickPolitics. In response, the district court partially granted Advocacy’s motion and enjoined Clevinger “from using Advocacy Holdings’ platform design and interface.” Clevinger v. Advocacy Holdings, Inc., Nos. 23-1159, 23-1176, 2023 WL 5220570, at *3 (D.D.C. Aug. 15, 2023). But the court declined to enjoin Clevinger from operating his competing businesses or from soliciting Advocacy’s customers.

Advocacy then appealed the district court’s partial denial of the preliminary injunction.

We affirm.

II. Analysis

To obtain a preliminary injunction, a movant “must establish that he is likely to succeed on the merits, that he is likely to suffer irreparable harm in the absence of preliminary relief, that the balance of equities tips in his favor, and that an injunction is in the public interest.” Winter v. Natural Resources Defense Council, Inc., 555 U.S. 7, 20 (2008).

We review a district court’s legal conclusions de novo — including its legal conclusion about the likelihood of 4 irreparable harm. Huisha-Huisha v. Mayorkas, 27 F.4th 718, 726 (D.C. Cir. 2022). We review any weighing of the preliminary injunction factors for abuse of discretion. Id. And we accept a district court’s factual findings unless they are clearly erroneous. Id.

A. Advocacy Has Not Shown Irreparable Harm

Advocacy Holdings says it will suffer two principal injuries without a preliminary injunction: (1) loss of customers (because Clevinger allegedly solicited its clients); and (2) reputational harm (because Clevinger allegedly misrepresented Advocacy’s future plans).1 We agree with the district court that, in the context of this case, those injuries are not irreparable.

1 Advocacy devotes two sentences to a third alleged injury, “loss of customer trust and goodwill” from Clevinger’s alleged “misuse of . . . confidential and or proprietary information.” Appellant’s Br. 34. To the extent this argument is preserved, it fails on the merits. See Schneider v. Kissinger, 412 F.3d 190, 200 n.1 (D.C. Cir. 2005) (“It is not enough merely to mention a possible argument in the most skeletal way, leaving the court to do counsel’s work” (cleaned up)). The only case Advocacy cites in support of this alleged injury dealt with a far different situation. See Appellant’s Br. 34 (citing Morgan Stanley DW Inc. v. Rothe, 150 F. Supp. 2d 67, 77 (D.D.C. 2001)). There, a former employee took “extremely private and sensitive” client financial information from his employer “without the clients’ permission,” risking “a loss of trust and goodwill” from clients who may “feel that their personal information is not safe with the plaintiff.” Rothe, 150 F. Supp. 2d at 77-78. Here, Advocacy alleges only that Clevinger took customer “contacts” — information far less likely to impair “customer trust and goodwill” than the sensitive financial information at issue in Rothe. Id. at 77. 5 1. The Standard for Irreparable Harm

We are mindful of the “high standard for irreparable injury.” Chaplaincy of Full Gospel Churches v. England, 454 F.3d 290, 297 (D.C. Cir. 2006). Such an injury “must be both certain and great.” Wisconsin Gas Co. v. FERC, 758 F.2d 669, 674 (D.C. Cir. 1985). “Mere injuries, however substantial, in terms of money, time and energy necessarily expended in the absence of a” preliminary injunction “are not enough.” Virginia Petroleum Jobbers Association v. Federal Power Commission, 259 F.2d 921, 925 (D.C. Cir. 1958).

We are also mindful that rigid rules and equity principles mix like oil and water. So not surprisingly, no categorical rule precludes preliminary injunctions that protect noncompete agreements. In some cases, breaches of a noncompete must be preliminarily enjoined because “economic losses from the breach are either incalculable or so substantial as to threaten the employer’s ability to stay in business.” Hospitality Staffing Solutions, LLC v. Reyes, 736 F. Supp. 2d 192, 199 (D.D.C. 2010). But in other cases, courts can remedy the breach of a noncompete agreement with compensatory relief. And the “possibility that adequate compensatory or other corrective relief will be available at a later date, in the ordinary course of litigation, weighs heavily against a claim of irreparable harm.” Virginia Petroleum, 259 F.2d at 925.

2. Loss-of-Customers Injury

Advocacy says that without a preliminary injunction, it will lose customers.

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134 F.4th 1230, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chazz-clevinger-v-advocacy-holdings-inc-cadc-2025.