Mapal, Inc. v. Atarsia

147 F. Supp. 3d 670, 2015 U.S. Dist. LEXIS 159807, 2015 WL 7717185
CourtDistrict Court, E.D. Michigan
DecidedNovember 30, 2015
DocketCase No. 15-cv-12159
StatusPublished
Cited by10 cases

This text of 147 F. Supp. 3d 670 (Mapal, Inc. v. Atarsia) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mapal, Inc. v. Atarsia, 147 F. Supp. 3d 670, 2015 U.S. Dist. LEXIS 159807, 2015 WL 7717185 (E.D. Mich. 2015).

Opinion

ORDER DENYING DEFENDANT AB-DELATIF ATARSIA’S MOTION TO DISMISS [#26]

GERSHWIN A. DRAIN, United States District Judge

I. INTRODUCTION

On June 12, 2015, Plaintiff MAPAL, Inc. filed a Complaint against Defendants Ab-delatif Atarsia (“Atarsia”) and YG-1 USA, Inc. (“YG-1”). Atarsia filed a motion to dismiss on August 20, 2015 [#17], but Plaintiff filed an Amended Complaint (“FAC”) on September 4, 2015.1 In the FAC, Plaintiff alleges: (a) breach of employment agreement by Atarsia (Count I); (b) breach of fiduciary duty by Atarsia (Count II); (c) conspiracy by Atarsia and YG-1 (unnumbered count, hereinafter treated as Count III); and (d) tortious interference by YG-1 (labeled Count III but hereinafter treated as Count IV). On September 21, 2015, Atarsia filed a Motion to Dismiss the FAC [#26], which motion was fully briefed. A hearing was held on November 23, 2015. For the reasons that follow, Atarsia’s Motion to Dismiss is DENIED as to Count I and GRANTED as to Counts II and III.

II. FACTUAL BACKGROUND

As alleged in the FAC, Plaintiff is a “domestic for profit Michigan corporation” that is “a wholly owned subsidiary of MA-PAL Fabrik fur Prazisionswerkzeuge Dr. Kress KG.” See FAC ¶ 2. Plaintiff describes its line of business as follows:

With MAPAL Fabrik, MAPAL is a worldwide manufacturer and supplier of precision tools for metal machining, including a complete program based on bore machining, cutting tools and other related precision metal working and cutting tools, which service the automobile, aerospace, truck and manufacturing industries.

Id.

Atarsia is a resident of Montreal, Quebec, Canada, who was employed by Plaintiff from February 2012 to April 10, 2015. FAC ¶ 3. At or near the time Atarsia began working for Plaintiff, the parties entered into an Employment Agreement (the “Agreement”). FAC, Ex. B. Atarsia, who holds a Ph.D. in mechanical engineering, was hired as Plaintiffs “Aerospace Manager” for “business and market development for current and potential customers for the North America (Canada, United States and Mexico) aerospace and composite fiber industry in North America, as well as any other duties assigned or delegated to him by [Plaintiff].” FAC, Ex. B at ¶ 1. Atarsia’s duties as Aerospace Manager included: (a) developing trading partners for Plaintiff for distribution in the aerospace market, (b) developing and implementing a training program for regional sales managers and executive staff on the aerospace market, (c) being responsible for the engineering and assessment of production tooling sales and customer service, (d) engineering development and implementation of sales strategies and plans to acquire new business for Plaintiff, and (e) providing an engineering level assessment of tools used for warranty issues. FAC ¶ 9. In furtherance of those duties, Atarsia: (1) worked with Plaintiff professionals and [675]*675suppliers to develop cost quotes for Plaintiff products to be sold to customers, (2) provided technical support to customers, (3) provided engineering level evaluations of proposed systems and component materials to ensure cost efféctive final products with quality parameters, and (4) prepared and delivered on Plaintiffs behalf technical presentations that explained Plaintiffs products and services to customers and prospective customers'.' Id. at ¶ 10.

The Agreement contained a confidentiality provision that states, in part:

Employee acknowledges that as a result of his agreement [with] Employer, he will become informed of, and have access to, confidential information of Employer... and that such information is the exclusive property of Employer. Accordingly, Employee shall maintain confidentiality with respect to such ¡information that he received in the course, of his contract and not disclose any such information. Further, Employee shall not, at any time subsequent to his contract, unless compelled by legal process,- use, copy, reveal, publish, transfer, or otherwise disclose to any person, corporation or other entity, any of Employer’s confidential information without the express consent of Employer.... :'

FAC, Ex. B at ¶ 4. Plaintiff alleges that Atarsia “did, in fact, become informed of, and had access to, Plaintiffs confidential, proprietary and trade secret information, including but not limited to its production capabilities, product design, quality parameters, cost and pricing methodologies, its customers and prospective customers, its sales strategies and its plans to acquire new business.” FAC ¶ 12.

The Agreement also contained a non-competition - provision that states, in relevant part:
During the term of this Agreement and for a period of twelve (12) months following - the termination of his contract, ,.. Employee shall not directly own, manage, operate, join, control, or participate in or be connected with, as an officer, employee, partner, stockholder, or otherwise, any other entity that is at the time engaged principally or significantly in a business that is, directly or indirectly, at the time in competition with the business of Employer anywhere in the world.

FAC, Ex. B at ¶ 6.. Under the Agreement, Plaintiff could terminate Atarsia with or without cause at any time. Id. at ¶ 5. Atarsia was required to give Plaintiff three months notice if he elected to terminate his employment without cause. Id.

Atarsia resigned his employment with Plaintiff by submitting -a resignation notice on March 25, 2015.2 FAC ¶ 24. See also FAC, Ex. C. Plaintiff -notified Atarsia that the three-month notice clause would be enforced, but Atarsia notified Plaintiff that April 10, 2015 would be his last day. FAC ¶¶ 25, 26. Plaintiff later advised Atarsia that: (a) his-service would not be needed after April 10, 2015, but (b) he would remain a Plaintiff employee until June 25, 2015, subject to the terms of the Agreement. Id. at ¶ 27. Shortly thereafter, Plaintiff learned that Atarsia had begun working for or on behalf of YG-1, a company that Plaintiff maintains is a direct competitor of Plaintiff in the aerospace industry. Id. at ¶ 28. On May 1, 2015, Plaintiff sent cease and desist létters to Atarsia and YG-l’s CEO. Id. at ,¶ 29. An executive at YG-1 then contacted Plaintiffs CEO and threat[676]*676ened to hire away all of Plaintiffs sales employees if Plaintiff did not drop its efforts to require Atarsia to comply with the terms of the Agreement. Id. at ¶ 31.

III. LAW & ANALYSIS

A. Standard of Review

Federal Rule of Civil Procedure 12(b)(6) allows the court to make an assessment as to whether the plaintiff has stated a claim upon which relief may be granted. See Fed. R. Civ. P. 12(b)(6). “Federal Rule of Civil Procedure 8(a)(2) requires only ’a short and plain statement of the claim showing that the pleader is entitled to relief,’ in order to ’give the defendant fair notice of what the.. .claim is and the grounds upon which it rests.*” Bell Atlantic Corp. v. Twombly,

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Bluebook (online)
147 F. Supp. 3d 670, 2015 U.S. Dist. LEXIS 159807, 2015 WL 7717185, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mapal-inc-v-atarsia-mied-2015.