ISO Claims Partners, Inc. v. Cassavoy

34 Mass. L. Rptr. 176
CourtMassachusetts Superior Court, Suffolk County
DecidedMarch 20, 2017
DocketNo. SUCV2017575
StatusPublished

This text of 34 Mass. L. Rptr. 176 (ISO Claims Partners, Inc. v. Cassavoy) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court, Suffolk County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ISO Claims Partners, Inc. v. Cassavoy, 34 Mass. L. Rptr. 176 (Mass. Super. Ct. 2017).

Opinion

Wilkins, Douglas H., J.

Plaintiff, ISO Claims Partners, Inc. (“ISO”), brought an action for injunctive relief and damages against the defendant Martin Cassavoy (“Cassavoy”). In particular, ISO claims that Cassavoy has breached and will breach restrictive covenants contained in his Employment Agreement dated December 9, 2010, prohibiting competitive employment, disclosure and use of confidential information and solicitation of ISO’s clients. The court heard argument from both sides on March 15, 2017 on ISO’s “Emergency Motion for a Preliminary Injunction” (“Motion”). For the reasons set forth below, the Motion is ALLOWED WITH CONDITIONS.

BACKGROUND

At this early stage, the court makes the following preliminary findings of fact, reflecting those facts that ISO is likely to prove.

Martin Cassavoy (“Cassavoy”) was Vice President, Policy for ISO. He began working for Crowe Paradis, a predecessor of ISO, on March 20, 2006. On December 9, 2010, after being promoted to Vice President of Policy, Cassavoy signed the Crowe Paradis Services Corporation’s Confidentiality and Non-Competition Agreement (“Agreement”). Crowe Paradis was acquired by ISO’s parent, Verisk Analytics on December 14, 2010, and later changed its name to ISO Claims Partners, Inc., effective January 1, 2014.

The “Confidentiality and Non-Competition Agreement” (“Agreement”) contained the following provisions, among others:

1. Non-Disclosure of Confidential Information. Employee hereby agrees to receive and to hold in trust and confidence during and after Employee’s employment with the Company, regardless of whether such information is in Employee’s memory or in ■written or recorded form. For purposes of this Agreement, “Confidential Information” includes, without limitation, all intellectual property, trade secrets, confidential information, proprietary information, customer lists (whether created by the Company or not), information about customers or potential customers, business cards or other contact information for customers or potential customers, vendor lists (whether created by the Company or not), information about vendors or potential vendors, business cards or other contact information for customers or potential vendors, lists of employees (whether created by the Company or not), information about employee, product development, marketing, research, products, processes, operations, computer programs and documents, pricing, costs, financials, accounting information, business policies or practices and similar information or other information pertaining to the Company and its business. Employee also agrees to (i) use its best efforts to safeguard Confidential Information at all times so that it is not exposed to, used by, or made available to any persons without the prior written consent of the Company, and (ii) not to cause or influence any person, business or entiiy to disclose, divulge, or make unauthorized use of any Confidential information.
[[Image here]]
4. Fair Competition After Termination. To protect the Confidential Information, the Company’s client relationships and goodwill, and the Company’s other business interests, all of which Employee agrees are legitimate business interests of the Company, and in consideration of the mutual promises set forth herein, Employee agrees that during the term of its employment with the Company and for a period of one (1) year following Employee’s termination from the Company for any reason, Employee will not directly or indirectly do any of the following, whether as an individual, employee, agent, shareholder, or partner of any person, business or entity, in the United States:
A. Work, participate in, or otherwise be involved in any business activity that competes directly or indirectly with the products or services being developed, manufactured or sold by the Company, including without limitation, any other services that Company offered during the term of Employee’s employment with the Company within the three (3) year period preceding Employee’s termination from the Company; or
B. Solicit, pursue, accept, participate in, or otherwise be involved in any business activity that competes directly or indirectly -with the products or services being developed, manufactured or sold by the Company, including without limitation, any other services that Company offered during the term of Employee’s employment with the Company within the three (3) year period preceding Employee’s termination from the Company; . . . [C.-E. omitted]

At ISO, Cassavoy worked on Medicare Secondary Payer (“MSP”) compliance. He has described his role as “work[ing] one-on-one with clients to serve their individual compliance needs” and “work[ing] with major national insurers to assist them in developing and implementing a compliance model.” He has said that he acts “as the business unit lead for all contract matters including negotiation, drafting and contract strategy.” He was a member of a 20-person group, including employees of various levels of responsibility, known as the “Senior Team.” While the parties disagree about whether he was responsible for “developing” products as such, he did, at least, assist ISO employees on applying MSP compliance concepts to the services and (in at least one case) products that [178]*178ISO provided. He has also stated “My diverse background includes experience in product development, marketing, management and public speaking.” He was the MSP compliance policy advisor prior to the development of the ISO product known as MSP Navigator. He otherwise lacks a technical background relating to development or upgrades of operating systems. He was responsible for responding to RFPs, as assigned by the ISO Business operations department. At times, he was consulted about the price of offerings, specific products offered and the development of additional products and services for the client. On a daily basis, he often answered MSP compliance-related questions for the decision makers at clients and for others needing assistance. While he spoke and wrote on topics related to MSP compliance, ISO also eliminated his name as author in some instances. His salary, including salary, bonuses and equity compensation grants, exceeded $200,000.

As Vice President, Policy, Cassavoy had knowledge of ISO’s sales activities, customer relations issues, sales prospects and corporate strategies, including plans for submissions in response to customers’ requests for proposals. He knew confidential aspects of ISO’s current and future technical capabilities and processes. He had extensive client contact, including several major insurance companies who were ISO’s clients. The identity of those well-known companies and their need for MSP compliance services, of course, is no secret.

On January 25, 2017, at Barr’s specific direction, Cassavoy requested a meeting with Amanda Smith to get a deeper understanding of how “system to system” clients would be affected by an ongoing ISO product development project. Shortly before Cassavoy resigned (January 27 at 2 pm), he attended a meeting that Caitlin Henry had previously scheduled with ISO project managers. Cassavoy was not a typical attendee at that meeting. At the meeting, he asked about how “system to system” clients would be affected by an ongoing ISO product development project.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Whitinsville Plaza, Inc. v. Kotseas
390 N.E.2d 243 (Massachusetts Supreme Judicial Court, 1979)
Kroeger v. Stop & Shop Companies, Inc.
432 N.E.2d 566 (Massachusetts Appeals Court, 1982)
USM Corp. v. Marson Fastener Corp.
467 N.E.2d 1271 (Massachusetts Supreme Judicial Court, 1984)
Novelty Bias Binding Co. v. Shevrin
175 N.E.2d 374 (Massachusetts Supreme Judicial Court, 1961)
Marine Contractors Co. Inc. v. Hurley
310 N.E.2d 915 (Massachusetts Supreme Judicial Court, 1974)
Alexander & Alexander. Inc. v. Danahy
488 N.E.2d 22 (Massachusetts Appeals Court, 1986)
Eastern Marble Products Corp. v. Roman Marble, Inc.
364 N.E.2d 799 (Massachusetts Supreme Judicial Court, 1977)
Sentry Insurance v. Firnstein
442 N.E.2d 46 (Massachusetts Appeals Court, 1982)
Packaging Industries Group, Inc. v. Cheney
405 N.E.2d 106 (Massachusetts Supreme Judicial Court, 1980)
Richmond Brothers v. Westinghouse Broadcasting Co.
256 N.E.2d 304 (Massachusetts Supreme Judicial Court, 1970)
USM Corp. v. Marson Fastener Corp.
393 N.E.2d 895 (Massachusetts Supreme Judicial Court, 1979)
Jet Spray Cooler, Inc. v. Crampton
282 N.E.2d 921 (Massachusetts Supreme Judicial Court, 1972)
All Stainless, Inc. v. Colby
308 N.E.2d 481 (Massachusetts Supreme Judicial Court, 1974)
Chelsea Industries, Inc. v. Gaffney
449 N.E.2d 320 (Massachusetts Supreme Judicial Court, 1983)
Patton v. Babson's Statistical Organization, Inc.
156 N.E. 534 (Massachusetts Supreme Judicial Court, 1927)
Club Aluminum Co. v. Young
160 N.E. 804 (Massachusetts Supreme Judicial Court, 1928)
Woolley's Laundry, Inc. v. Silva
23 N.E.2d 899 (Massachusetts Supreme Judicial Court, 1939)
Shaw v. Harding
28 N.E.2d 469 (Massachusetts Supreme Judicial Court, 1940)
Junker v. Plummer
67 N.E.2d 667 (Massachusetts Supreme Judicial Court, 1946)
Smith v. Graham Refrigeration Products Co.
129 N.E.2d 884 (Massachusetts Supreme Judicial Court, 1955)

Cite This Page — Counsel Stack

Bluebook (online)
34 Mass. L. Rptr. 176, Counsel Stack Legal Research, https://law.counselstack.com/opinion/iso-claims-partners-inc-v-cassavoy-masssuperctsuff-2017.