Kelly Services v. Eidnes

530 F. Supp. 2d 940, 2008 U.S. Dist. LEXIS 1799, 2008 WL 115187
District Court, E.D. Michigan·Decided January 10, 2008·No. Civil 07-14989·Published·Cited by 14 cases

Opinion

OPINION AND ORDER DENYING DEFENDANT’S MOTION TO DISMISS AND GRANTING PLAINTIFF’S MOTION FOR PRELIMINARY INJUNCTION

JOHN FEIKENS, District Judge.

Before this Court are Plaintiff Kelly Services Inc.’s (Kelly) motion for a preliminary injunction, pursuant to Fed.R.Civ.P. 65(a), and Defendant Cynthia Eidnes’s (Eidnes) motions to dismiss for lack of subject matter jurisdiction, pursuant to Fed.R.Civ.P. 12(b)l; for lack of personal jurisdiction, pursuant to Fed.R.Civ.P. 12(b)(2); for failure to state a claim, pursuant to Fed.R.Civ.P. 12(b)(6); as well as Eidnes’s motion to dismiss or transfer for improper venue, pursuant to 28 U.S.C. §§ 1391, 1404. For the reasons explained below, this Court GRANTS Plaintiffs motion for a preliminary injunction, and DENIES Defendant’s motions to dismiss and transfer venue.

I. Background Information

A. Factual Information

Plaintiff Kelly Services is a Delaware corporation with its principal place of business in Troy, Michigan. Defendant Cynthia Eidnes is a citizen and resident of Minnesota. Eidnes is a Stanford Law School graduate who began in the legal staffing business in November 1993 when she joined the Wallace Law Registry. Both parties agree she was very successful in ■ this industry, developing contacts throughout the Minneapolis legal market and establishing a market niche for temporarily placing attorneys for discrete projects.

*945 Eidnes’s employment with Kelly Services began the day Kelly Services bought the Wallace Law Registry in May 1995. Without any previous presence in the Minneapolis legal market, Kelly Services relied heavily on Eidnes to continue her success, which she did with the vast majority of her work confined to the greater Minneapolis area. 1 On May 1, 2000, Eidnes signed a document entitled “Agreement with Full-Time Employees of Kelly Corporation.” 2 (Agreement). As relevant to this litigation, the Agreement contained the following non-competition, non-solicitation clauses which were included as consideration for her employment with Kelly Services.

(1) ... 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 date 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, stockholder, investor, agent or consultant. 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.

On October 31, 2007, Eidnes informed her immediate supervisor that it would be her last day with Kelly Services. She gave no indication why she was quitting or who she would be working for in the future. It was only after reviewing the website of Beacon Hills, a direct competitor of Kelly’s, that it was discovered that Eidnes had left to become the Beacon Hills Legal Division Director.

Kelly alleges that as part of her employment and because of the nature of her position with Kelly, Eidnes had access to and regularly utilized Kelly’s trade secrets and confidential information, including its customer lists, marketing and sales strategies, contractual details for its customers, regional pricing lists and profit margins. Kelly also alleges that Eidnes had at least semi-regular access to this information through Kelly’s Troy based computer system. As a result of these development, Kelly claims Eidnes is in violation of the Agreement she signed and that she is in violation of the Michigan Uniform Trade Secrets Act (MUTSA), M.C.L. § 445.1901 et. seq. As a result, Kelly fears that Eidnes will use its trade secrets and confidential information unlawfully and that as a result, it will lose the value of this information as well as customers, clients and revenues.

B. Procedural Information

On December 6, 2007, following arguments on Plaintiffs motion for a Temporary Restraining Order, this Court issued an order restraining Defendant Eidnes from working for a Kelly Services competitor in the Minneapolis area legal staffing *946 market until further notice of this Court. Plaintiff now seeks a preliminary injunction that retrains or enjoins Defendant Eidnes from violating its agreement with Eidnes until November 1, 2008.

Defendant has also filed her own motions. First, Eidnes claims this court does not have subject matter jurisdiction over these facts because the dispute does not amount to $75,000 of damages which is required in a diversity jurisdiction matter such as this. Second, Eidnes argues this court does not have personal jurisdiction over her because she lacked contact with Michigan, other than incidental contacts that bear no relationship to these events. Third, Eidnes argues that Plaintiff failed to state a claim because of the general nature of its complaint. Finally, Eidnes claims the venue chosen is improper because the events and conduct at issue occurred in Minnesota, not Michigan. In the alternative, Eidnes asks that this court to transfer venue to Minnesota as a matter of convenience.

The Court will address Defendant’s Motions first, and then address Plaintiffs Motion for a Preliminary Injunction.

II. Subject Matter Jurisdiction

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Kelly Services v. Eidnes, 530 F. Supp. 2d 940, 2008 U.S. Dist. LEXIS 1799, 2008 WL 115187 (E.D. Mich. 2008).

530 F. Supp. 2d 940 (Kelly Services v. Eidnes) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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