Logan Finance Corporation v. McLaughlin

CourtDistrict Court, E.D. Texas
DecidedMay 1, 2025
Docket4:25-cv-00461
StatusUnknown

This text of Logan Finance Corporation v. McLaughlin (Logan Finance Corporation v. McLaughlin) is published on Counsel Stack Legal Research, covering District Court, E.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Logan Finance Corporation v. McLaughlin, (E.D. Tex. 2025).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK -------------------------------------------------------------------X

LOGAN FINANCE CORPORATION,

MEMORANDUM AND Plaintiff, ORDER -against- 24-CV-5800(SIL)

ASHLEY McLAUGHLIN,

Defendant. -------------------------------------------------------------------X STEVEN I. LOCKE, United States Magistrate Judge: Presently before the Court in this breach of contract and defamation action is Defendant Ashley McLaughlin’s (“McLaughlin” or “Defendant”) motion to dismiss Plaintiff Logan Finance Corporation’s (“Logan Finance” or “Plaintiff”) Complaint for lack of personal jurisdiction pursuant to Rule 12(b)(2) of the Federal Rules of Civil Procedure (“Fed. R. Civ. P.”). See Docket Entry (“DE”) [12]. She alternatively moves to transfer venue to the Eastern District of Texas, where she resides. Id. Plaintiff opposes. DE [12-4]. Defendant’s motion is granted and this matter is transferred to the Eastern District of Texas. I. BACKGROUND A. Factual Background1 Plaintiff is an Arkansas corporation that is “in the business of funding mortgage loans.” See Complaint (“Compl.”), DE [1-1], ¶¶ 1, 4-5; Declaration of Donald

1 In deciding a motion to dismiss for lack of personal jurisdiction, “[a] Court may look beyond the four corners of the complaint and consider materials outside the pleadings, including accompanying affidavits, declarations, and other written materials.” Trade Pay LLC v. Horowitz, No. 21-CV- 442(ENV)(ARL), 2023 WL 12030712, at *1 n.1 (E.D.N.Y. Oct. 5, 2023) (quoting Astor Chocolate Corp. v. Elite Gold Ltd., 510 F. Supp. 3d 108, 115 n.1 (S.D.N.Y. 2020)). Pace in Opposition to Motion to Dismiss (“Pace Decl.”), DE [12-6], ¶ 2. Although Plaintiff is not licensed as a mortgage banker in New York, it is authorized to purchase commercial mortgage loans originated by other lenders. Pace Decl. ¶ 4.

Logan Finance has a principal place of business in Suffolk County, New York, with headquarters located at 1393 Veterans Memorial Highway, Hauppauge, New York. Id.; Compl. ¶¶ 1, 4. Defendant is a “lifelong citizen of the State of Texas” and currently resides in Nevada, Texas. See Declaration of Ashley McLaughlin in Support of Motion to Dismiss (“McLaughlin Decl.”), DE [12-2], ¶ 4; Compl. ¶ 2. Pursuant to a July 25, 2022 Employment Offer Letter Agreement (the

“Agreement”) Defendant accepted a position at Logan Finance as Vice President of Business Optimization. Compl. ¶ 6; McLaughlin Decl. Ex. A. Defendant interviewed for the position from her home in Texas, and asserts that it “was understood and agreed between [herself] and the company that [she] would work remotely from [her] home in Nevada, Texas.” McLaughlin Decl. ¶ 5. To this end, the Agreement states that McLaughlin “will work remotely.” Id. at Ex. A. The Agreement incorporates by reference a document titled “Standard Terms of Offer” (the “Offer Terms”), which the

Agreement identifies as “material terms and conditions.” Id. The Offer Terms provide in relevant part: Governing Law; Waiver of Jury Trial: This offer letter shall be construed and enforced in accordance with the laws of the state in which the Company office from which you work is located or, if a remote employee, the state from which you work remotely, in each case, as indicated in the Company’s records. Id. Moreover, relevant for purposes of Logan Finance’s claims, the Offer Terms contain a “Confidential and Proprietary Information” provision (the “Confidentiality Provision”) that provides:

As an employee of [Logan Finance], you will have access to certain confidential and proprietary information of the Company and you may, during the course of your employment, develop trade secret information or know-how that will be the property of the Company. As a condition of accepting employment with the Company, you are prohibited from disclosing any confidential or proprietary information of the Company to third-parties during and subsequent to your employment. Confidential and proprietary information concerning the Company, its products, customers, prospective customers, methods of operation, pricing, suppliers, shareholders, and employees acquired in the course of your employment, including all financial information and customer lists, is to be used solely for Company purposes and never to be discussed with or divulged to unauthorized individuals or entities. Your obligation to maintain the confidentiality of such information and to use it only for authorized Company purposes continues after your employment ends. Compl. ¶ 15. Defendant worked for Plaintiff from August 2, 2022 until May 10, 2024. See McLaughlin Decl. ¶ 5; Declaration of Terrance Mitchell in Opposition to Motion to Dismiss (“Mitchell Decl.”), DE [12-7], ¶ 2. Her “job responsibilities were focused on processing mortgage loans for the Company” and “included participating in or conducting daily meetings with her team and overseeing the Account Managers responsible for moving loans from application to closing.” Mitchell Decl. ¶ 4. Although she “very occasionally . . . visited and worked out of the company’s Texas office,” she otherwise worked exclusively from her home. McLaughlin Decl. ¶¶ 5-7. In any event, she only worked from Texas and “never stepped foot into New York State” during her employment. Id. at ¶ 7. Defendant reported to Plaintiff’s Chief Operating Officer, Nicholas Imbimbo, who worked remotely from his home in Sand Spring, Oklahoma. Mitchell Decl. ¶ 3. According to Logan Finance’s Chief People Officer, Terrance Mitchell, when

Defendant was hired, she was “informed of the Company’s significant presence in New York, and that she would otherwise be collaborating regularly with [New York] based employees.” Id. at ¶ 7. Mitchell asserts that McLaughlin “regularly communicated via telephone, Zoom meetings, and email with Underwriting, Disclosure, Closing and Post-Closing Departments located in Plaintiff’s Hauppauge, New York headquarters.” Id. He does not describe the nature or purpose of any

specific communications. Mitchell further states that during her employment, McLaughlin “had approximately forty-four (44) employees reporting directly to her from various departments.” Id. at ¶ 5. Three were based in New York. Id. Likewise, Mitchell identifies by name three additional New York-based individuals with whom Defendant “regularly interacted,” but who did not report to Defendant. Id. at ¶ 7. Mitchell does not describe the nature of, or reason for, any such purported interactions. Id.

On May 10, 2024, McLaughlin resigned from her position at Logan Finance and subsequently began working for a competitor. Compl. ¶¶ 10-11. Although the merits of Plaintiff’s claims are not presently at issue, Logan Finance identifies four forms of alleged misconduct that serve as the bases of its causes of action: - McLaughlin allegedly misappropriated confidential information by taking confidential personnel information to recruit or solicit certain employees to Defendant’s new employer. Id. at ¶¶ 14-22, 54-55.2 - McLaughlin allegedly destroyed Plaintiff’s property by both altering a “staffing capacity tool which enables proper provision coverage for certain employees” and by deleting over 80,000 emails. Id. at ¶¶ 24- 25. - McLaughlin allegedly told certain employees that Plaintiff “would undergo massive layoffs” in an effort to convince employees to resign. Id. at ¶¶ 31-36. - McLaughlin allegedly told certain employees that Plaintiff’s Chief Revenue Officer and Head of Mortgage Operations were responsible for the failure of a previous mortgage company and would be the cause of Plaintiff’s failure. Id. at ¶ 44. B.

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Logan Finance Corporation v. McLaughlin, Counsel Stack Legal Research, https://law.counselstack.com/opinion/logan-finance-corporation-v-mclaughlin-txed-2025.