Elko, Inc. v. Corey Peters

District Court, D. Nevada·Decided January 27, 2022·No. 3:22-cv-00015·Unknown

Opinion

* * * ELKO, INC., d/b/a COACH USA (NV), Case No. 3:22-cv-00015-MMD-CLB

Plaintiff, ORDER v. COREY PETERS, et al., Defendants. Plaintiff Elko, Inc. (“Coach Elko”) sued Defendants1 for stealing its trade secrets and confidential information and using that information to unfairly compete with Coach Elko in the Nevada market. (ECF No. 4 at 3-4.) Before the Court are Coach Elko’s motions for temporary restraining order (“TRO”) and preliminary injunction (“PI”) (“Motions”),2 which request that the Court enjoin Defendants from misappropriating its trade secrets, soliciting and providing services to Coach Elko’s customers, and using Coach Elko’s copyrighted work. (ECF Nos. 4 at 24, 5 at 24.) Coach Elko also requests the return of documents and devices, including an external hard drive, that contain its confidential information, and Defendants’ preservation of case-related evidence. (Id.) Because Coach 1Coach Elko brought this action against WTH Commercial Services, LLC (“WTH Commercial”); Wynne Transportation, LLC (“Wynne”); Wynne Transportation Holdings, LLC (“Holding Company”); Coastal Crew Change Company, LLC (“Coastal”); Mountain Crew Change Company (“Mountain Crew”); Gemini Investors, Inc. (“Gemini”); John Montgomery; and Matthew Keis. (ECF No. 3 at 1-2 (collectively “Corporate Defendants”).) Coach Elko also sued two of its former employees, Corey Peters and Yolanda Perez. (Id.)

2Corporate Defendants filed a response (ECF No. 17) to the Motions, and Peters and Perez filed a joinder (ECF No. 19) to the response. Coach Elko’s TRO and PI motions are identical. (ECF Nos. 4, 5.) Elko failed to satisfy the Winter factors, and because the requested injunctive relief is premised on mere speculation, the Court will deny Coach Elko’s Motions. Coach Elko is a subsidiary of Coach USA and provides transportation services to employees of Nevada’s mining companies in the Elko and Winnemucca area. (ECF No. 4 at 4.) Defendants are WTH Commercial, a subsidiary of the Holding Company, that similarly provides ground transportation services to mining companies in Nevada and surrounding states; the Holding Company, WTH Commercial’s parent corporation; Coastal, another subsidiary of the Holding Company that provides transportation services to companies in the Gulf Coast region; Gemini, an investor of the Holding Company; John Montgomery, the president and CEO of the Holding Company; Matthew Keis, the general partner and managing member of Gemini; and Corey Peters and Yolanda Perez, former employees of Coach Elko.3 (ECF Nos. 4 at 10, 17 at 10, 12-13.) Coach Elko alleges that Peters, the company’s former Vice President and General Manager, and Perez, the former Director of Operations, stole Coach Elko’s trade secrets and confidential information, and have been misappropriating these trade secrets, in violation of their confidentiality agreements and company policy. (ECF Nos. 4 at 3-4, 17, 4-2 at 3, 6.) Coach Elko specifically accuses Peters of downloading and sending files about Coach Elko’s “internal marketing and sales strategies, operational plans, correspondence regarding bids and requests for proposals, pricing spreadsheets, and pricing formulas” to his personal email for two years before his resignation. (ECF Nos. 4 at 3, 6, 27, 4-2 at 5, 8.) He also allegedly took a hard drive that contained confidential files 3Coach Elko also named Mountain Crew Change Company and Wynne Transportation as Defendants in this lawsuit. (ECF No. 3 at 1-2.) According to Corporate Defendants, Mountain Crew is unincorporated, and will become the trade name for WTH Commercial. (ECF No. 17 at 10, 22.) Wynne Transportation “is a Delaware limited-liability company headquartered in Texas.” (Id. at 10.) Corporate Defendants maintain that “Holding Company is the sole member of Coastal Crew, Wynne Transportation, and WTH Commercial.” (Id.) about Coach Elko’s operating procedures, pricing rates and strategies, profits and losses, and employee and customer contact information. (ECF No. 4 at 7.) Peters resigned from Coach Elko in June 2021 and began working for Holdings Company, and Perez left Coach Elko in July 2021 and began working for WTH Commercial. (ECF Nos. 4-2 at 6-8, 17 at 15.) Coach Elko accuses Defendants of using Coach Elko’s proprietary and confidential trade secrets, acquired through Peters and Perez, to poach Coach Elko’s customers, and engage in unfair competition. (ECF No. 4 at 3.) According to Coach Elko, Defendants have already stolen one of its long-time customers, Customer One, and is currently soliciting other customers. (Id. at 11.) Coach Elko subsequently initiated this lawsuit against Defendants and filed ex parte motions for a TRO and PI on January 10, 2022. (ECF Nos. 4, 5.) Coach Elko requests preliminary injunctive relief on the basis of five claims: trade secret misappropriation under Nevada’s Uniform Trade Secrets Act and the Defend Trade Secrets Act (against all Defendants); breach of contract (against Defendants Perez and Peters); copyright infringement (against Defendants Wynne Commercial, Wynne, and Holding Company); intentional interference with business relationships (against all Defendants); and civil conspiracy (against all Defendants).4 (ECF No. 4 at 14-21.) On January 11, 2022, the Court issued a minute order denying the part of Coach Elko’s Motions that requested ex parte relief because Coach Elko failed to demonstrate sufficient grounds for such relief. (ECF No. 8.) Coach Elko then filed an emergency motion for reconsideration and an emergency motion for an expedited briefing schedule. (ECF Nos. 10, 11.) The Court denied the motion for reconsideration but granted the motion for expedited briefing. (ECF No. 12.) On January 21, 2022, the Court held a video hearing (“Hearing”) on Coach Elko’s Motions. (ECF No. 29.) ///

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Elko, Inc. v. Corey Peters, (D. Nev. 2022).

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