Docrx, Inc. v. Dox Consulting, LLC

738 F. Supp. 2d 1234, 2010 U.S. Dist. LEXIS 102488, 2010 WL 3548469
CourtDistrict Court, S.D. Alabama
DecidedSeptember 7, 2010
DocketCA 10-0364-C
StatusPublished
Cited by6 cases

This text of 738 F. Supp. 2d 1234 (Docrx, Inc. v. Dox Consulting, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Docrx, Inc. v. Dox Consulting, LLC, 738 F. Supp. 2d 1234, 2010 U.S. Dist. LEXIS 102488, 2010 WL 3548469 (S.D. Ala. 2010).

Opinion

MEMORANDUM OPINION AND ORDER

WILLIAM E. CASSADY, United States Magistrate Judge.

This cause is before the undersigned on the defendants’ motion to dismiss for lack of personal jurisdiction and improper venue or to transfer venue (Doc. 4; see also Doc. 5), plaintiffs response in opposition (Doc. 8), the defendants’ reply (Doc. 11), and plaintiffs sur-reply (see Doc. 12, Attached Sur-Reply). The parties have consented to the exercise of jurisdiction by the Magistrate Judge, pursuant to 28 U.S.C. § 636(c), for all proceedings in this Court. (See Docs. 7 & 9 (“In accordance with provisions of 28 U.S.C. § 636(c) and Fed.R.Civ.P. 73, the parties in this case consent to have a United States magistrate judge conduct any and all proceedings in this case, including the trial, order the entry of a final judgment, and conduct all post-judgment proceedings.”)) After consideration of the foregoing pleadings, with attachments, along with plaintiffs complaint, the Court finds that the defendants’ motion to dismiss for lack of personal jurisdiction and improper venue or to transfer venue (Doc. 4) should be DENIED.

FINDINGS OF FACT

1. DocRX, Inc., an Alabama pharmaceutical dispensing company (see Doc. 1, COMPLAINT, at ¶¶ 1 & 7), 1 provides “point of care pharmaceutical dispensing software to physicians and medical groups and clinics across the United States[]” (Doc. 8, Affidavit of Brian Ward, at ¶ 1) which allows “physicians to dispense prepackaged medication at the point of care[ ]” (Doc. 1, COMPLAINT, at ¶ 7; cf. Doc. 5, Exhibit 1, Affidavit of Mickey Gui *1237 dry,, at ¶2 (“DocRx is in the business of providing certain medications to physicians who in turn make point of care sales, to patients.”)).

2. The plaintiff “recruited pharmaceutical sales representatives” to promote it and its services to the aforementioned physician groups and offices (Doc. 1, COMPLAINT, at ¶ 9) and between February and May of 2009 plaintiff specifically recruited “the individual Defendants in to promote DocRX.” (Id. at ¶ 10; see also Doc. 8, Ward aff., at ¶ 2) As part of the parties’ oral promotion agreement, “DocRX agreed to distribute profits to the[] individual ] [defendants] on a percentage basis for any accounts brought into the DocRX business by them and others.” (Doc. 1, COMPLAINT, at ¶ 10; see also Doc. 5, Exhibit 1, Guidry aff., at ¶ 2 (“In 2009, I did have an arrangement with DocRx under which I would receive a share of the profits for accounts I brought to DocRx.”)) 2 Plaintiff sent all distribution/commission checks to the individual defendants from its “operating account in Alabama.” (Doc. 8, Ward aff., at ¶ 2)

3. Individual defendants Scott Ray, Garrett Hebert, and Stacy Patín signed non-compete agreements with DocRX. (Doc. 8, Ward aff., at ¶ 10; see also Doc. 5, Exhibit 5, Affidavit of Scott Ray, at ¶2 (“In connection with my agreement with DocRx I did sign a document entitled Non-compete Agreement.”); Exhibit 7, Affidavit of Garrett Hebert, at ¶ 2 (same); Exhibit 8, Affidavit of Stacy Patín, • at ¶ 2 (same)) While these non-compete agreements were signed by Ray, Hebert, and Patín outside the State of Alabama (Doc. 5, Exhibits 5, 7 & 8, at ¶ 2), they were faxed to DocRX in Mobile, Alabama (Doc. 8, Ward aff., at ¶ 10) and at that point were executed by Ward on behalf of DocRX and then sent back to Ray, Hebert, and Patín (see Doc. 12, Exhibit A, Second Affidavit of Brian Ward, at ¶¶ 2-4 & Exhibits 1-3 to second aff. of Ward). These documents provide that the “agents” (Ray, Hebert and Patín) were contracting with DocRX to provide sales of plaintiffs software services-facilitating pharmaceutical drug purchases between medical providers and pharmacists-to medical providers on a commission basis in exchange for which they agreed “not to directly or indirectly compete with the business of DocRX and its successors and assigns during the period of employment by Company and for a period of one (2) 3 years following termination of employment and notwithstanding the cause or reason for termination.” (Doc. 12, Exhibit 2 to second aff. of Ward)

*1238 The term “not to directly or indirectly compete” as used herein shall mean that the Agent shall not own, manage, operate, consult or be employed in a business (i) anywhere in the United States and (ii) substantially similar to or competitive with the present business of the DoeRX or such other business activity in which the DoeRX may substantially engage during the term of employment.
The Agent acknowledges that DoeRX shall or may in reliance of this agreement work with the Agent and provide Agent access to customers and other confidential data and good will. Agent agrees to retain said information as confidential and not to use said information on his or her own behalf or disclose same to any third party.

(Id. (emphasis supplied))

4. Plaintiff trained the individual defendants in mid-2009 in order to acclimate them to DocRX’s business operations and software. (Doc. 8, Ward aff., at 4) This training took place via the internet, “with the training originating in Mobile, Alabama[ ]” and also by conference calls “originating from Mobile, Alabama.” (Id.; see, e.g., Doc. 5, Exhibit 3, Booty aff., at ¶ 3 (“To the extent DocRx provided any training or information the same was provided to me outside the State of Alabama.”))

Included in this training process was an overview of all of the aspects of DocRX’s business processes and ideas, including education on the computer software system, a background on the pharmaceutical companies involved in the industry, the nature of the industry as a whole, the DoeRX method of marketing, DocRX’s billing methods and accounting procedures, DocRX’s private client list and target client lists, names of individual sales representatives, and the appropriate manner in which to comply with state laws governing the industry.

(Doc. 1, COMPLAINT, at ¶ 11)

5. The individual defendants “distributed promotional material on behalf of DoeRX to potential clients that [] stated that DoeRX was an Alabama corporation.” (Doc. 8, Ward aff., at ¶ 5) Moreover, “the individual Defendants and others held themselves out to be representatives and/or agents of DoeRX to physician groups and offices across the country through oral and written communications.” (Doc. 1, COMPLAINT, ¶ 12) However, except for one instance, 4 all work performed by the individual defendants for plaintiff was done outside the State of Alabama. (See, e.g., Doc.

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Cite This Page — Counsel Stack

Bluebook (online)
738 F. Supp. 2d 1234, 2010 U.S. Dist. LEXIS 102488, 2010 WL 3548469, Counsel Stack Legal Research, https://law.counselstack.com/opinion/docrx-inc-v-dox-consulting-llc-alsd-2010.