Kelly Services, Inc. v. Greene

535 F. Supp. 2d 180, 2008 U.S. Dist. LEXIS 15269, 2008 WL 525814
CourtDistrict Court, D. Maine
DecidedFebruary 28, 2008
DocketCivil 08-23-P-H
StatusPublished
Cited by6 cases

This text of 535 F. Supp. 2d 180 (Kelly Services, Inc. v. Greene) is published on Counsel Stack Legal Research, covering District Court, D. Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kelly Services, Inc. v. Greene, 535 F. Supp. 2d 180, 2008 U.S. Dist. LEXIS 15269, 2008 WL 525814 (D. Me. 2008).

Opinion

DECISION AND ORDER ON MOTION FOR PRELIMINARY INJUNCTION

D. BROCK HORNBY, District Judge.

Kelly Services, Inc. (“Kelly Services”), an international staffing agency, is attempting to enforce an employment agreement containing non-compete and confidentiality clauses. This case is presented on Kelly Services’ motion for a preliminary injunction against its former employee Erin E. Greene (“Greene”). After analyzing the motion through the familiar four-factor framework, I conclude that Kelly Services falls short of satisfying its burden. The motion for a preliminary injunction is Denied.

Procedural Background

On January 24, 2008, Kelly Services filed a Verified Complaint 1 claiming this Court’s diversity jurisdiction. The Verified Complaint alleges breach of contract, breach of fiduciary duty, and misappropriation of trade secrets under the Michigan Uniform Trade Secrets Act (“MUTSA”). Verified Compl. ¶¶ 33-56 (Docket Item 1). On that same date, Kelly Services filed a motion for a temporary restraining order and preliminary injunction. PL Kelly Services, Inc.’s Mot. for TRO and Prelim. Inj. (Docket Item 4). The parties subsequently agreed with the United States Magistrate Judge for the matter to pro *182 ceed as a motion for preliminary injunction under Fed.R.Civ.P. 65(a) and to be decided on the papers. (Docket Item 8).

Factual Background

Kelly Services is a staffing services company incorporated in Delaware, headquartered in Troy, Michigan, and with branches in Maine. Verified Compl. ¶¶ 2, 6, 8. It provides a range of employment staffing and consulting services, including outsourcing, recruitment, and temporary staffing. Id. ¶ 6. Its “customers” or “clients” are companies with employment needs; and it recruits “candidates” to fill those needs.

Greene is 24 years old. Aff. of Erin E. Greene, ¶ 1 (Docket Item 11-3), attached to Def. Erin E. Greene’s Opp’n to Pl.’s Mot. for TRO and Prelim. Inj. (“Def.’s Opp’n”) (Docket Item 11). She began working for Kelly Services six months after graduating from college. Id. ¶ 2. She was employed by Kelly Services for more than two years, from the end of 2005 2 to December 7, 2007, as a “Staffing Supervisor.” Verified Compl. ¶¶ 7-8; Answer and Affirmative Defenses of the Def. Erin E. Greene (“Answer”) ¶¶ 7-8 (Docket Item 10); Greene Aff. ¶¶ 4, 6,14.

As a staffing supervisor, Greene serviced and maintained relationships with customers, developed new business, and recruited candidates throughout Cumberland and York Counties in Maine. Verified Compl. ¶¶ 8, 16; Answer ¶¶ 8, 16. Greene’s responsibilities at Kelly Services involved primarily “recruiting white collar office and clerical workers for customers in the insurance and financial industries, as well as smaller local companies needing office staff.” Greene Aff. ¶¶ 7-9. Approximately 75 percent of her work with Kelly Services involved recruiting activities for Anthem Blue Cross/Blue Shield, Unum, and Citigroup Financial — including spending one full year on site at Unum. Id. 118. During this time, Greene “acquired intimate knowledge concerning Kelly’s employees, employee lists, contact information, and training materials.” Verified Compl. ¶ 18; Answer ¶ 18.

At the beginning of her employment, Greene signed an agreement containing both non-compete and confidentiality clauses. See Verified Compl., Ex. A. The pertinent parts of the agreement state:

(1) Unless required by my job at Kelly, I will never disclose, use, copy, or retain any confidential business information or trade secrets belonging to Kelly, Kelly’s customers, or Kelly’s suppliers. This includes customer and employee lists; sales, service, recruiting and training techniques and manuals; sales and marketing strategies; computer programs; financial data and other similar information.
(2) While I am working for Kelly, I will not solicit any of Kelly’s customers or employees for a competing business, and I will not compete against Kelly or associate myself with any Kelly competitor as an employee, owner, partner.... These same limitations apply for one year after I leave Kelly in any market area in which I worked or had responsibility during the past five years of my employment with Kelly.
(7) This Agreement will be interpreted and enforced under Michigan Law....

Id.

Greene voluntarily resigned from Kelly Services on December 7, 2007. Verified Compl. ¶ 21; Answer ¶ 21; Greene Aff. ¶ 14. At least part of the reason for her resignation were the repeated statements *183 of possible layoffs made by a supervisor at Kelly Services, Scott Miller. See Greene Aff. ¶¶ 11-13. Upon her resignation, Greene informed Kelly Services that she had accepted a job with Maine Staffing Group (“Maine Staffing”). Verified Compl. ¶ 23; Answer ¶ 23; Greene Aff. ¶17. 3

During her employment at Kelly Services, Greene used a variety of proprietary programs and databases that contained confidential information regarding clients, candidates, pricing, and business strategies. Verified Compl. ¶¶ 14-15; Answer ¶¶ 14-15; Aff. of Scott Miller, ¶ 12 (Docket Item 13-3), attached to Pl.’s Reply Br. However, when she left Kelly Services, Greene “retained no document, file or other item that would fall into any of the categories of confidential information” as described in the confidentiality agreement. Greene Aff. ¶ 28.

Greene began work for the Portland (Maine) office of Maine Staffing on December 13, 2007, with the title of Staffing Specialist. Id. ¶ 24; Aff. of Mark Burns, ¶ 4 (Docket Item 11-4), attached to Def.’s Opp’n. The Portland office of Maine Staffing “recruits blue collar positions for the construction and trade industries”; it “does not recruit for clients seeking to fill office or clerical positions.” Burns Aff. ¶ 7.

Greene’s duties at Maine Staffing “are primarily clerical in nature.” Greene Aff. ¶ 25; Burns Aff. ¶ 5. While employed at Maine Staffing, Greene does not seek new accounts or customers, Burns Aff. ¶ 6, and she has not solicited any business involving white collar (or clerical) personnel or any Kelly Services customer, Greene Aff. ¶¶ 25-27. Greene does not perform any work for Maine Staffing that is related to “recruiting for the financial, insurance or health care industries.” Id. ¶ 29. Greene has not used any protected information from Kelly Services in her position at Maine Staffing. Id. ¶ 28.

Preliminary Injunction Analysis

A preliminary injunction is “an extraordinary and drastic remedy, one that should not be granted unless the movant, by a clear showing, carries the burden of persuasion.” Mazurek v. Armstrong, 520 U.S. 968, 972, 117 S.Ct. 1865, 138 L.Ed.2d 162 (1997) (quoting 11A Charles A. Wright, Arthur R. Miller and Mary Kay Kane,

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Bluebook (online)
535 F. Supp. 2d 180, 2008 U.S. Dist. LEXIS 15269, 2008 WL 525814, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kelly-services-inc-v-greene-med-2008.