Contiem v. Gullion

CourtDistrict Court, D. Maryland
DecidedSeptember 30, 2024
Docket1:23-cv-02511
StatusUnknown

This text of Contiem v. Gullion (Contiem v. Gullion) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Contiem v. Gullion, (D. Md. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND

* CONTIEM, f/k/a ORBIS * TECHNOLOGIES, INC., * * Plaintiff, * * Civ. No. MJM-23-2511 v. * * KIM GULLION, et al., * * Defendants. * * * * * * * * * * * *

MEMORANDUM OPINION Contiem f/k/a Orbis Technologies, Inc. (“Orbis”) brings this action against Kim Gullion and Writer Resource LLC (“WRL”) (collectively, “Defendants”), alleging breach of contract and violation of the Maryland Uniform Trade Secrets Act (“MUTSA”). ECF 7 (Am. Compl.). This matter before the Court is on Defendants’ Motion to Dismiss (the “Motion”). ECF 16. The Motion is fully briefed, and ripe for disposition. No hearing is necessary. See Loc. R. 105.6 (D. Md. 2023). For the reasons set forth below, the Motion shall be granted. I. FACTUAL BACKGROUND Orbis is a Delaware corporation with its principal place of business in Annapolis, Maryland. Am. Compl. ¶ 13. Gullion is a resident of Lakeville, Minnesota, and WRL is a Minnesota corporation with its principal place of business in Lakeville, Minnesota. Id. ¶¶ 14–15; ECF 16-2 (“Gullion Decl.”) ¶¶ 2, 9. On August 31, 2022, Orbis entered into an asset purchase agreement with Writing Assistance, Inc. (“WAI”) “whereby Orbis purchased substantially all of WAI’s rights, title and interest in all of WAI’s assets and properties, whether real, personal, or mixed, tangible or intangible, including goodwill.” Am. Compl. ¶ 22; ECF 7-1 (Asset Purchase Agreement); Gullion Decl. ¶ 4. As of August 2022, Gullion had worked at WAI at for eighteen years, and she was the company’s Vice President of Sales and Recruiting at the time of the purchase. Am. Compl. ¶ 25.

Following the asset purchase agreement, Gullion received a $320,000 bonus and the offer of a senior-level position with Orbis. Id. ¶ 3; ECF 7-2 (Orbis Offer of Employment); Gullion Decl. ¶ 4. Gullion accepted the position and started as Orbis’s Vice President of Healthcare, Financial and Business Services on September 1, 2022. Am. Compl. ¶ 27; Gullion Decl. ¶ 4. Along with the offer of employment, Gullion signed the Assignment of Inventions, Non- Disclosure, Non-Solicitation, and Non-Competition Agreement (the “Agreement”). Am. Compl. ¶ 28; ECF 7-3; Gullion Decl. ¶ 4. Gullion agreed that for one year following the termination of her employment with Orbis, she would not work for or with any of Orbis’s competitors, nor would she solicit Orbis’s clients or customers. Am. Compl. ¶¶ 29, 36–37; ECF 7-3 (the Agreement) ¶¶ 10– 11. She also agreed to keep Orbis’s proprietary information confidential. Am. Compl. ¶¶ 31–34;

ECF 7-3 ¶¶ 2–5. The Agreement includes a Maryland choice-of-law provision. Am. Compl. ¶ 38; ECF 7-3 ¶ 15 (“This Agreement shall be governed in all respects by the laws of the United States of America and by the laws of the State of Maryland.”). As part of her employment with Orbis, Gullion attended “all-day internal client services meetings” in Annapolis, Maryland on September 14 and 15, 2022. Am. Compl. ¶¶ 39–40; Gullion Decl. ¶ 6. During these meetings, Orbis executives and senior employees discussed product and company information generally unknown to the public, including “clients and client services, revenue, company objectives and priorities, and sales.” Am. Compl. ¶¶ 39–40. On October 14, 2022, Gullion submitted formal notice of resignation, and her employment with Orbis terminated on October 21, 2022. Id. ¶ 35; Gullion Decl. ¶ 7. Orbis alleges that before she left the company, Gullion contacted various client liaisons, telling them to keep in touch. Am. Compl. ¶¶ 44–46. According to Orbis, on October 20, 2022, Gullion “downloaded several

documents and folders from Orbis’s server including but not limited to the following: (i) her email mailbox; (ii) a ‘drafts’ folder; (iii) an ‘archive’ folder; (iv) a ‘deleted items’ folder, and (v) an offline address book,” as well as the calendar of the Orbis CEO’s executive assistant. Id. ¶ 47. Orbis’s server is located in Maryland. Id. ¶ 48. After leaving Orbis, Gullion founded WRL, a Minnesota-based staffing and recruiting agency for writers, for which she serves as CEO. Id. ¶¶ 50–51; Gullion Decl. ¶¶ 9–10 (“I am [WRL’s] CEO and only member.”). Orbis claims that WRL competes with Orbis and that Gullion is thereby in breach of the Agreement. Am. Compl. ¶¶ 68–71. At least 26 Orbis clients listed in the Amended Complaint terminated their relationship with Orbis when WRL was formed. Id. ¶ 72. Orbis specifically alleges that Gullion solicited four of these businesses, which are based in

Maryland or have offices in Maryland. Id. ¶ 77. Gullion has submitted a declaration for the Court’s consideration. ECF 16-2. In her declaration, Gullion states that she was working for WAI in Minnesota when it was purchased by Orbis in August 2022 and Orbis offered employment her and other WAI employees. Id. ¶ 4. In September 2022, Gullion began working for Orbis from her home in Minnesota. Id. ¶ 5. Orbis required Gullion to attend an in-person meeting at Orbis’s office in Annapolis, Maryland on September 14 and 15, 2022. Id. ¶ 6. This was Gullion’s only visit to Maryland. Id. Gullion subsequently left Orbis and formed WRL in Minnesota. Id. ¶ 9. As of October 20, 2023, WRL had eight clients and two prospective clients, none of which are based in Maryland or listed in the Amended Complaint as clients of Orbis. Id. ¶ 11.

II. PROCEDURAL BACKGROUND On May 19, 2023, Orbis filed its initial Complaint in the Circuit Court of Maryland for Anne Arundel County. ECF 6.1 Orbis filed an Amended Complaint on August 23, 2023, asserting claims for breach of contract and tortious misappropriation, and seeking damages and declaratory and injunctive relief. Am. Compl. ¶¶ 96–130. On September 15, 2023, Defendants removed the case to the United States Court for the District Court of Maryland, ECF 1, and on October 30, 2023, they filed a Motion to Dismiss, ECF 16. Orbis subsequently filed an opposition to the Motion, ECF 17, and Defendants filed a reply in support of the Motion, ECF 20.

III. STANDARD OF REVIEW A motion to dismiss under Rule 12(b)(2) of the Federal Rules of Civil Procedure tests whether the federal district court is permitted to exercise personal jurisdiction over a defendant in a specific case. Lewis v. Willough at Naples, 311 F. Supp. 3d 731, 734 (D. Md. 2018). “Under Rule 12(b)(2), a defendant ‘must affirmatively raise a personal jurisdiction challenge, but the plaintiff bears the burden of demonstrating personal jurisdiction at every stage following such a challenge.’” UMG Recordings, Inc. v. Kurbanov, 963 F.3d 344, 350 (4th Cir. 2020) (quoting Grayson v. Anderson, 816 F.3d 262, 267 (4th Cir. 2016)). The burden is “on the plaintiff ultimately

to prove the existence of a ground for jurisdiction by a preponderance of the evidence.” Combs v. Bakker, 886 F.2d 673, 676 (4th Cir. 1989); see also Grayson, 816 F.3d at 267 (same).

1 The same day, May 19, 2023, Defendants filed a suit for declaratory relief against Orbis in the United States District Court for the District of Minnesota. Gullion, et al. v. Orbis Techs., Inc., No. 23-cv- 1430-ECT/JFD (D. Minn. May 19, 2023), ECF 1. When “the existence of jurisdiction turns on disputed factual questions the court may resolve the [jurisdictional] challenge on the basis of a separate evidentiary hearing, or may defer ruling pending receipt at trial of evidence relevant to the jurisdictional question.” Combs, 886 F.2d at 676.

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Contiem v. Gullion, Counsel Stack Legal Research, https://law.counselstack.com/opinion/contiem-v-gullion-mdd-2024.