Gartner, Inc. v. Hackett Group, Inc.

CourtDistrict Court, D. Connecticut
DecidedNovember 7, 2023
Docket3:23-cv-00688
StatusUnknown

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

Bluebook
Gartner, Inc. v. Hackett Group, Inc., (D. Conn. 2023).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF CONNECTICUT

GARTNER, INC., No. 3:23-cv-688 (SRU) Plaintiff,

v.

THE HACKETT GROUP, INC., JEFFREY FARAMO, and JOHN VAN DECKER,

Defendants.

PRELIMINARY INJUNCTION ORDER Plaintiff Gartner, Inc. (“Gartner”) sued The Hackett Group, Inc. (“Hackett”), Jeffrey Faramo, and John Van Decker for breach of contract, trade secrets misappropriation, and tortious interference. Gartner then filed a motion seeking a preliminary injunction to prevent Faramo and Van Decker from working for Hackett and otherwise competing with Gartner, to prevent all defendants from misappropriating Gartner’s trade secrets, to prevent Hackett from interfering with Gartner’s non-competition agreements with Faramo and Van Decker, and for attorneys’ fees.1 Doc. No. 22. I held an evidentiary hearing on October 24, 2023 on the merits of Gartner’s motion. At the hearing, all parties consented to a preliminary injunction requiring all defendants to return and/or destroy any allegedly confidential and trade secret information belonging to Gartner,

1 Attorneys’ fees may be ordered when a party obtains a preliminary injunction “governed by [an] assessment of the merits” but “never obtain[s] final judgments in their favor on the merits.” LaRouche v. Kezer, 20 F.3d 68, 74 (2d Cir. 1994). In this case, it is too soon to know whether Gartner will not eventually obtain a final judgment. Therefore, Gartner’s request for attorneys’ fees is premature, and I deny that request, without prejudice. which I issued today. Doc. No. 110. Gartner also agreed on the record not to pursue injunctive relief at this stage against Hackett related to its tortious interference claim, because the relief it sought would be duplicative of any injunction barring Faramo and Van Decker from working for Hackett. The remaining relief sought by Gartner relates to its claim that Faramo and Van Decker breached their post-employment non-competition agreements with Gartner.

For the reasons that follow, Gartner is entitled to a preliminary injunction enforcing Faramo and Van Decker’s non-competition covenants. I. Facts Based on the evidence presented at the October 24, 2023 hearing, I find the following facts.2

Gartner is a Connecticut-based company that provides syndicated research and advisory to business clients. Hackett is a Florida-based company that provides IP-based executive advisory to business clients, and is rapidly expanding its syndicated research practice, which directly competes with Gartner. Jeffrey Faramo was employed by Gartner from 2004 until 2023, during which time he worked in various positions within Gartner’s sales department, most recently having the title of Managing Vice President. John Van Decker was employed by Gartner from 2008 until 2022 as a Research Vice President. In this role he produced research reports and provided guidance to clients on enterprise resource planning and financial management technologies. On March 4, 2022, both Faramo and Van Decker signed new employment

agreements (“the Agreements”) that each contained identical one-year, global post-employment

2 In this ruling, all exhibits that I cite to were offered and admitted at the October 24, 2023 hearing. See Exhibit and Witness List, Doc. No. 103. non-disclosure, non-competition, and non-solicitation covenants. The Agreements define as “Competitive Acts”: (A) the development, production, marketing or selling of (or assisting others to develop, produce, market or sell): (x) syndicated research that competes with Gartner or its subsidiaries; or (y) a product or service which is competitive with the existing or planned products or services of the Company with which Employee was involved in or managed at any time during the last twenty-four (24) months of the Employment; and/or (B) the direct or indirect provision of services to, or solicitation of, the Company’s clients or known prospects with whom Employee had contact, managed, or became aware of as a result of being employed by the Company, for the purposes of developing, producing, marketing or selling such competitive products or services. Faramo Agreement, Ex. 3, at ¶ 6(a)(i); Van Decker Agreement, Ex. 26, at ¶ 6(a)(i). Jeffrey Faramo received a job offer from Hackett in February 2023 for the position of Senior Vice President, Global IPB Sales, with the internal title of Principal, and announced his resignation from Gartner on the same day. He left Gartner in March, and began working for Hackett on April 3, 2023. On multiple occasions in February 2023 Faramo sent emails from his Gartner email address to his personal email address, attaching Gartner documents that allegedly contained confidential and trade-secrets information belonging to Gartner. See Ex. 41; Ex. 42; Ex. 43. At least some of these documents were then either loaded onto a flashdrive and transferred to Faramo’s Hackett computer, and/or sent via email to other Hackett employees. See, e.g. Ex. 1. John Van Decker received a job offer from Hackett in July 2022 for the position of Associate Principal, Vice President of Research Services. He also resigned from Gartner in July, 2022, and began working for Hackett in August. For the first six months of his employment at Hackett, Van Decker was assigned to a role other than the one he was hired to perform. In February of 2023, he began his role leading Hackett’s research team. Also for the first six months of his employment at Hackett, Van Decker took efforts to conceal the fact of his employment at Hackett from Gartner, including not posting about his new job on LinkedIn, and sending messages to other Hackett employees reminding them to keep the news of his hiring “internal.” See Ex. 18; Ex. 21; Ex. 22. On May 26, 2023, Gartner sued Hackett, Faramo, and Van Decker and sought, among other things, entry of a Preliminary Injunction against Faramo and Van Decker enjoining them from committing further violations of their non-competition obligations to Gartner, for the full

term of such restrictions, as contemplated by the Agreements’ tolling provisions. II. Standard of Review To obtain a preliminary injunction, the plaintiff must show: “that he is likely to succeed on the merits, that he is likely to suffer irreparable harm in the absence of preliminary relief, that the balance of equities tips in his favor, and that an injunction is in the public interest.” Glossip v.

Gross, 576 U.S. 863, 876 (2015) (cleaned up). A movant seeking to demonstrate a likelihood of success on the merits “need not show that success is an absolute certainty. He need only make a showing that the probability of his prevailing is better than fifty percent. There may remain considerable room for doubt.” Abdul Wali v. Coughlin, 754 F.2d 1015, 1025 (2d Cir. 1985), overruled on unrelated grounds by O'Lone v. Estate of Shabazz, 482 U.S. 342 (1987). However, where a movant seeks a “mandatory preliminary injunction that alters the status quo,” rather than a “prohibitory injunction seeking only to maintain the status quo,” the burden of proof is more stringent. Cacchillo v. Insmed, Inc., 638 F.3d 401, 406 (2d Cir. 2011). In that instance, a movant must demonstrate a “clear” or “substantial” likelihood of success on the merits. See Doninger v.

Niehoff, 527 F.3d 41, 47 (2d Cir. 2008). III. Discussion A. Clear Likelihood of Success on the Merits 1. Breach of Contract

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