H&E Equipment Services, Inc. v. Harley

CourtDistrict Court, M.D. Louisiana
DecidedFebruary 23, 2022
Docket3:22-cv-00103
StatusUnknown

This text of H&E Equipment Services, Inc. v. Harley (H&E Equipment Services, Inc. v. Harley) is published on Counsel Stack Legal Research, covering District Court, M.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
H&E Equipment Services, Inc. v. Harley, (M.D. La. 2022).

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF LOUISIANA

H&E EQUIPMENT SERVICES, INC. CIVIL ACTION

VERSUS 22-103-SDD-RLB KEVIN HARLEY

RULING This matter is before the Court on the Motion for Temporary Restraining Order (“TRO”) and Preliminary and/or Permanent Injunction1 filed by Plaintiff, H & E Equipment Services, Inc. (“Plaintiff”). Defendant, Kevin Harley (“Defendant”) was served with a summons in this matter on February 11, 2022, but, to date, he has not appeared in this

matter and has not responded to communications from Plaintiff’s counsel. Plaintiff is a corporation organized under the laws of Delaware with its principal place of business in Louisiana.2 Plaintiff alleges Defendant is a natural person of the age of majority who is, upon information and belief, domiciled in Arizona.3 This Court has jurisdiction over the causes of action pursuant to 28 U.S.C. §§ 1331 and 1332, because Plaintiff asserts certain causes of action that arise under federal law and because this dispute is between citizens of different States and concerns an amount in controversy that exceeds $75,000, exclusive of interest and costs.4 Venue is proper in

1 Rec. Doc. No. 2. 2 Rec. Doc. No. 1, ¶ 1. 3 Id. at ¶ 2. 4 Id. at ¶ 3. The Court finds for the purposes of this motion that Plaintiff has made a prima facie showing that the Court has personal jurisdiction over this Defendant based on his contacts with Louisiana and that the intended injury and actual injury are felt in Louisiana. this Court pursuant to 28 U.S.C. § 1391, because a substantial part of the events or omissions giving rise to the claim occurred in the Middle District of Louisiana. In particular, Plaintiff’s conduct (as alleged herein) (a) was targeted towards Plaintiff, which was formerly Defendant’s employer and which is domiciled in the Middle District of Louisiana, and (b) intentionally and/or knowingly converted and misappropriated information that

was accessed, routed, managed and controlled by and through Plaintiff’s servers that are located in the Middle District of Louisiana.5 On February 14, 2022, the Court set this matter for a telephone status conference to held on February 15, 2022. As is this Court’s practice, the Court ordered that Plaintiff’s counsel “is responsible for contacting counsel for Defendant and notifying counsel of this status conference.”6 At the February 15, 2022 telephone status conference, Plaintiff’s counsel advised the Court that they were not aware of any counsel enrolled for the Defendant and that they notified Defendant by email of the status conference. The Court set a Preliminary Injunction Hearing for March 2, 2022, ordered Plaintiff’s counsel to

advise the Court if contact with Defendant’s counsel was made, and took the Motion for TRO under advisement.7 I. FACTUAL BACKGROUND & ALLEGATIONS IN VERIFIED COMPLAINT Plaintiff’s business involves selling, renting, servicing, maintaining, and otherwise dealing in or with construction equipment, heavy industrial equipment, material handling equipment, and utility equipment, and related parts, implements, or similar assets.8 On or about October 5, 2020, Plaintiff hired Defendant as a sales representative in the

5 Id. at ¶ 4. 6 Rec. Doc. No. 10. 7 Rec. Doc. No. 12. 8 Rec. Doc. No. 1, ¶ 5. Tucson, Arizona market.9 At the time of Defendant’s hire, on October 8, 2020, he and Plaintiff executed a “Confidentiality, Non-Competition, and Non-Solicitation Agreement” (“the Non-Competition Agreement”) wherein Defendant agreed that he would not: (1) “disclose to any person or entity, without [H&E’s] prior consent any confidential, proprietary, and trade secret information and data, whether prepared by [Harley] or

others”; and (2) “except in the furtherance of the Business of [H&E] . . . remove confidential, proprietary, and trade secret information and data from the premises of Company, without the prior written consent of Company.”10 This Agreement defined the terms “confidential, proprietary, trade secret information and data” to include the following: business, pricing, and management methods and techniques; training; finances, strategies, systems, research, surveys, plans, reports, recommendations, and conclusions; names and contact information of, arrangements with, or other information relating to, Company’s customers, equipment suppliers, manufacturers, financiers, owners or operators, representatives, and other persons who have business relationships with Company or who are prospects for business relationships with Company; technical information, work products, and know-how; performance evaluations and the particulars of function of other employees of H&E; trade secrets; and, cost, operating, and other management information systems, and other software and programming.11

As to the availability of injunctive relief, the Agreement also provides: Since monetary damages will be inadequate and Company will be irreparably damaged if the provisions of this Agreement are not specifically enforced, Company shall be entitled, among other remedies, (a) to an injunction restraining any violation of this Agreement (without any bond or security being required, to the extent permitted by the applicable law) by Employee and by any persons or entity to whom Employee provides or proposes to provide any services in violation of this Agreement, [and] (b) to require Employee to hold in a constructive trust, account for any pay over to Company all compensation and other benefits which Employee shall derive as a result of any action or omission which is a violation of any provision of this Agreement.12

9 Id. at ¶ 6. 10 Rec. Doc. No. 1-1, pp. 1-2. 11 Id. at p. 2. 12 Id. at p. 4. The Agreement also provides for injunctive relief and an award of attorneys’ fees in the event of a breach.13 On February 4, 2020, Defendant submitted his resignation to Plaintiff and claimed therein that his reason for leaving was a “better opportunity – economic reasons.”14 Defendant’s employment ended on that day.15 Not long after this separation, Plaintiff reviewed the contents of Defendant’s work email to see if any company information or property had been misappropriated.16 Plaintiff discovered that Defendant sent multiple screenshots and work emails containing Plaintiff’s confidential and proprietary information to his personal email addresses just hours before he tendered his resignation.17 Plaintiff

observed that, at 10:57 am on February 4, Defendant forwarded an internal analysis reflecting a recent list of Plaintiff’s top thirty customers in the Tucson area (the “Top 30 List”).18 Plaintiff also discovered that, at 10:32 am on February 4, Defendant forwarded a PDF document containing a list of all potential job prospects for Plaintiff nationwide as of February 2022 (the “February 2022 PEC List”).19 Plaintiff discovered that, between 10:09 am and 10:20 am on February 4, Defendant forwarded seventeen screenshots from his work computer reflecting client information, customer-specific billing rates, invoiced amounts, equipment rates, and market performance (the “Screenshots”).20 These items, along with others, were all forwarded to Defendant’s personal email addresses.21 Plaintiff

13 Id. at pp. 4-5. 14 Rec. Doc. No. 1, ¶ 11. 15 Id. 16 Id. at ¶ 12. 17 Id. at ¶ 13. 18 Id. at ¶ 14. 19 Id. at ¶ 15. 20 Id. at ¶ 16. 21 Id. at ¶ 17.

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H&E Equipment Services, Inc. v. Harley, Counsel Stack Legal Research, https://law.counselstack.com/opinion/he-equipment-services-inc-v-harley-lamd-2022.