CORPORATE SYNERGIES GROUP, LLC v. ANDREWS

CourtDistrict Court, D. New Jersey
DecidedAugust 12, 2019
Docket2:18-cv-13381
StatusUnknown

This text of CORPORATE SYNERGIES GROUP, LLC v. ANDREWS (CORPORATE SYNERGIES GROUP, LLC v. ANDREWS) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CORPORATE SYNERGIES GROUP, LLC v. ANDREWS, (D.N.J. 2019).

Opinion

Not for Publication UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

CORPORATE SYNERGIES GROUP, LLC, Plaintiff, Civil Action No. 18-13381 v. OPINION & ORDER GREGORY ANDREWS, SIMONE UR, GERARD DUFFY, BARBARA DIGGS and ALLIANT INSURANCE SERVICES, INC., Defendants.

This matter involves the alleged breach of non-solicitation and confidentiality agreements, Presently before the Court are the following two motions filed Defendants: (1) Defendants Gregory Andrews, Gerard Duffy and Barbara Diggs’ motion to dismiss Counts One and Seven of Plaintiff's Amended Verified Complaint pursuant to Federal Rule of Civil Procedure 12(b)(6) (D.E. 56); and (2) Defendants Simone Ur and Alliant Insurance Services, Inc.’s (“Alliant”) motion for judgment on the pleadings for Counts One and Seven of Plaintiff's Amended Verified Complaint (D.E. 59). Plaintiff filed a single brief opposing both motions (D.E. 73), to which Defendants filed two reply briefs (D.E. 74, 75).'! For the reasons that follow, both of Defendants’ motions are DENIED.

In this Opinion, the brief in support of the Rule 12(b)(6) motion (D.E. 56-1) will be referred to as “12(b)(6) Br.”; the brief in support of the Rule 12(c) motion (D.E. 59-1) will be referred to as “12(c) Br.”; Plaintiff's brief in opposition (D.E. 59) will be referred to as “PIf. Opp.”; Defendants’ reply brief in support of the Rule 12(c) motion (D.E. 74) will be referred to as “12(c) Reply”; and Defendants’ reply brief in support of the Rule 12(b)(6) motion (D.E. 75) will be referred to as “12(b)(6) Reply.”

I. FACTUAL? AND PROCEDURAL BACKGROUND Plaintiff Corporate Synergies Group, LLC (“CSG”) and Defendant Alliant are direct competitors in the insurance brokerage services field. Am. Verified Compl. (the “AVC”), D.E. 19. Defendants Gregory Andrews, Simone Ur, Gerard Duffy, and Barbara Diggs (the “Individual Defendants”) were CSG employees who worked closely together. Jd. {| 25, 27, 29, 32. CSG required that each of the Individual Defendants sign a Non-Solicitation and Confidentiality Agreement (the “Agreement”) that contained confidentiality requirements as well as post- employment non-solicitation, non-disclosure, and non-disparagement provisions. Jd. 955. During the summer of 2018, the Individual Defendants all voluntarily resigned from CSG and began working for Alliant. /d, ff 104, 139, 147, 152. On August 30, 2018, Plaintiff filed a Verified Complaint and requested a temporary restraining order, preliminary injunction, and expedited discovery. Plaintiff sought to prevent Defendants from soliciting CSG’s current clients and disclosing confidential CSG information. D.E 1. Following oral argument on September 4, 2018, the Court granted Plaintiff's application for a temporary restraining order as to Defendant Andrews regarding the solicitation of CSG’s current and former clients. Plaintiffs application for a temporary restraining order was otherwise denied. In addition, the Court partially granted Plaintiff's request for expedited discovery. D.E. 14.

? The factual background is taken from Plaintiffs Amended Verified Complaint (the “AVC”) and its exhibits. D.E. 19. When reviewing a Rule 12(b)(6) motion to dismiss or a Rule 12(c) motion for judgment on the pleadings, “courts generally consider only the allegations in the complaint, exhibits attached to the complaint, matters of public record, and documents that form the basis of aclaim.” Goldenberg v. Indel, Inc., 741 F. Supp. 2d 618, 624 (D.N.J. 2010) (quoting Lum v. Bank of Am,, 361 F.3d 217, 222 n.3 (3d Cir. 2004)) (discussing standard for Rule 12(b)(6) motion); Syndicate 1245 at Lloyd's v. Walnut Advisory Corp., 721 F. Supp. 2d 307, 314 (D.N.J. 2010) (discussing standard for Rule 12(c) motion).

On September 26, 2018, CSG filed the AVC and a motion for an expanded temporary restraining order as a result of new information it discovered after the September 4 hearing. D.E. 19, 20. The Court granted Plaintiff's request in part, and on October 3, 2018, preliminarily enjoined the Individual Defendants from violating the non-solicitation provision of the Agreements.’ D.E. 44. Shortly after, on October 24, 2018, Alliant and Ur filed answers to the AVC (D.E. 57, 58) along with their motion for judgment on the pleadings (D.E. 59); the remaining Defendants filed their motion to dismiss pursuant to Rule 12(b)(6) (D.E. 56).4 Il. LEGAL STANDARDS i. Motion to Dismiss Standard Rule 12(6)(6) permits a court to dismiss a complaint that fails “to state a claim upon which relief can be granted[.]” For a complaint to survive dismissal under Rule 12(b)(6), it must contain sufficient factual matter to state a claim that is plausible on its face. Ashcroft v. Igbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). A claim is facially plausible “when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Jd. Further, a plaintiff must “allege sufficient facts to raise a reasonable expectation that discovery will uncover proof of her claims.” Connelly v. Lane Const. Corp., 809 F.3d 780, 789 (3d Cir. 2016). In evaluating the sufficiency of a complaint, district courts must separate the factual and legal elements. Fowler v. UPMC Shadyside, 578 F.3d 203, 210-211 (3d Cir. 2009). Restatements of

3 Defendants appealed the October 3 Order that preliminary enjoined the Individual Defendants. D.E. 46. On June 4, 2019, the Third Circuit vacated the October 3 Order and remanded the matter to this Court for further proceedings. D.E. 82. * On July 26, 2019, Defendants filed a motion to stay discovery pending a decision on the motion to dismiss and motion for judgment on the pleadings. D.E. 88. Although the motion to stay is not fully briefed, this Opinion and Order renders Defendants’ motion to stay moot.

the elements of a claim are legal conclusions, and therefore, are not entitled to a presumption of truth. Burtch v. Milberg Factors, Inc., 662 F.3d 212, 224 (3d Cir. 2011). The Court, however, “must accept all of the complaint’s well-pleaded facts as true.” Fowler, 578 F.3d at 210. Even if plausibly pled, however, a complaint will not withstand a motion to dismiss if the facts alleged do not state “a legally cognizable cause of action.” Turner v. J.P. Morgan Chase & Co., No. 14-7148, 2015 WL 12826480, at *2 (D.N.J. Jan. 23, 2015). 2. Motion for Judgment on the Pleadings Standard Rule 12(c) provides that “[a]fter the pleadings are closed—but early enough not to delay trial—a party may move for judgment on the pleadings.” Fed. R. Civ. P. 12(c). Pleadings are “closed” after the complaint and answer are filed. Horizon Healthcare Servs., Inc. v. Allied Nat'l Inc., No. 03-4098, 2007 WL 1101435, at *3 (D.N.J. Apr. 10, 2007). “Under Rule 12(c), judgment will not be granted unless the movant clearly establishes that no material issue of fact remains to be resolved and that he is entitled to judgment as a matter of law.” Rosenau v. Unifund Corp.,

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