Clinical Staffing, Inc. v. Worldwide Travel Staffing Ltd.

60 F. Supp. 3d 618, 37 I.E.R. Cas. (BNA) 195, 2013 WL 5762385, 2013 U.S. Dist. LEXIS 152682
CourtDistrict Court, E.D. North Carolina
DecidedOctober 21, 2013
DocketNo. 5:12-CV-647-D
StatusPublished
Cited by4 cases

This text of 60 F. Supp. 3d 618 (Clinical Staffing, Inc. v. Worldwide Travel Staffing Ltd.) is published on Counsel Stack Legal Research, covering District Court, E.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clinical Staffing, Inc. v. Worldwide Travel Staffing Ltd., 60 F. Supp. 3d 618, 37 I.E.R. Cas. (BNA) 195, 2013 WL 5762385, 2013 U.S. Dist. LEXIS 152682 (E.D.N.C. 2013).

Opinion

ORDER

JAMES C. DEVER III, Chief Judge.

On September 10, . 2012, Clinical Staffing, Inc. d/b/a Dzeel Clinical (“Dzeel”) sued its competitor Worldwide Travel Staffing, Limited (‘Worldwide Travel Staffing”) in Wake County Superior Court alleging tor-tious interference with contract and a violation of the North Carolina Unfair and Deceptive Trade Practices Act [D.E. 1-2]. Worldwide Travel Staffing timely removed the action to this court, and the court has jurisdiction based on diversity jurisdiction [D.E. 1]. Essentially, Dzeel contends that after Worldwide Travel Staffing won a contract with the North Carolina Department of Health and Human Services (“NCDHHS”) to provide nursing services, Worldwide Travel Staffing tortiously interfered with contracts that Dzeel had with numerous nurses that Dzeel had hired and placed in various NCDHHS facilities. In support of its two claims against Worldwide Travel Staffing, Dzeel relies on a non-competition provision in the nurses’ contracts. Because the non-competition provision in each Dzeel contract is unenforceable under North Carolina law, the court grants Worldwide Travel Staffing’s motion for summary judgment.

I.

Dzeel and Worldwide Travel Staffing are staffing companies that compete in filling long-term and short-term nursing positions. In July 2012, the NCDHHS ■awarded a non-exclusive three-year staffing contract to Worldwide Travel Staffing to provide temporary nursing services for the North Carolina Division of State Operated Healthcare Facilities. After Worldwide Travel Staffing won the contract, a number of nurses who worked for Dzeel resigned and began accepting positions with Worldwide Travel Staffing. In turn, Worldwide Travel Staffing placed a number of these nurses in the same NCDHHS facilities where the nurses had worked as Dzeel employees.

Dzeel’s complaint relies on a non-competition provision in each Dzeel employee’s contract The non-competition provision states:

I understand that I have come to Dzeel Clinical seeking per diem, contract, or permanent placement, and I will be submitted to one or all of the company’s clients. I agree that for a period of six months immediately after the termination of my employment with Dzeel Clinical, I will not directly or indirectly, make known to any person, firm, or corporation the terms of my employment. I will not provide service to any Dzeel client or individual who has received services under the direction of Dzeel Clinical, for a period of (6) six months from my termination date. [621]*621This also applies to all written material and information pertinent to the business and distributed to any person/organization unrelated to 'Dzeel Clinical. Such material and information includes but is not limited to client lists, promotional material, operating policy and procedure manuals, personnel files, forms, etc. as these materials are considered proprietary.
I further understand and agree that after Dzeel Clinical has submitted my profile to a potential employer, on my behalf, and at my request, I will not permit or pursue a duplicate submission from any other agency for a period of (6) six months. I give Dzeel Clinical permission to instruct said elient(s) to destroy duplicate submissions. I further understand and agree that I will not he eligible for employment at said facility through Dzeel or any other agency, if I violate this agreement.

[D.E. 22-1] (emphasis added). Dzeel asserts two claims against Worldwide Travel Staffing. First, Dzeel alleges tortious interference with • contractual relations. [D.E. 1-2], Compl. ¶¶ 26-31. Second, Dzeel alleges a violation of North Carolina’s Unfair and Deceptive Trade Practices Act (“UDTPA”). Id. ¶¶ 32-43. Both claims stem from Worldwide Travel Staffing’s decision to recruit and hire former Dzeel nurses, to tell the former Dzeel nurses that the non-competition provision in each nurse’s contract with Dzeel was not enforceable, and to place many of the former Dzeel nurses at the same NCDHHS facility where they had previously worked for Dzeel. According to Dzeel, Worldwide Travel Staffing engaged in this conduct to avoid costs associated with recruiting, training, and orienting nurses. See id. ¶¶ 26-43.

On May 24, 2013, Worldwide Travel Staffing filed a motion for summary judgment [D.E. 20] and a supporting memorandum [D.E. 20-1]. On June 14, 2013, Dzeel responded in opposition [D.E. 25], including three affidavits and various exhibits [D.E. 22-24], On June 27, 2013, Worldwide Travel Staffing replied [D.E. 26].

In considering a motion for summary judgment, the court views the evidence in the light most favorable to the nonmoving party (i.e., Dzeel) and applies well-established principles under .Federal Rule of Civil Procedure 56. See, e.g., Fed.R.Civ.P. 56; Scott v. Harris, 550 U.S. 372, 378, 127 S.Ct. 1769, 167 L.Ed.2d 686 (2007); Celotex Corp. v. Catrett, 477 U.S. 317, 325-26, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247-52, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986); Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 585-87, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). Summary judgment is appropriate “if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(a); see Anderson, 477 U.S. at 247-48, 106 S.Ct. 2505. The party seeking summary judgment must initially come forward and demonstrate an absence of a genuine issue of material fact See Celotex, 477 U.S. at 325, 106 S.Ct. 2548. Once the moving party has met its burden, the nonmoving party then must affirmatively demonstrate that there exists a genuine issue of material fact for trial. See Matsushita, 475 U.S. at 586-87, 106 S.Ct. 1348. “[T]here is no issue for trial unless there is sufficient evidence favoring the nonmoving party for a jury to return a verdict for that party.” Anderson, 477 U.S. at 249, 106 S.Ct. 2505. It is insufficient to show a “mere ... scintilla of evidence in support of the [nonmov-ing party’s] position ...; there must be evidence on which the [fact finder] could reasonably find for the [nonmoving party].” Id. at 252,106 S.Ct. 2505.

[622]*622The court is exercising diversity jurisdiction, and the parties agree that North Carolina substantive law applies. In applying North Carolina substantive law, the court “must determine how the Supreme Court of [North] Carolina would rule. If the Supreme Court of [North] Carolina has spoken neither directly nor indirectly on the particular issue before us,, [this court is] called upon to predict how that court would rule if presented with the' issue. In making that prediction, [this court] may consider lower court opinions in [North] Carolina, the teachings of treatises, and the practices of other states.”

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Bluebook (online)
60 F. Supp. 3d 618, 37 I.E.R. Cas. (BNA) 195, 2013 WL 5762385, 2013 U.S. Dist. LEXIS 152682, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clinical-staffing-inc-v-worldwide-travel-staffing-ltd-nced-2013.