Mario Tricoci Hair Salons & Day Spas, LLC d/b/a Tricoci Salon and Spa v. Sloat

CourtDistrict Court, N.D. Illinois
DecidedOctober 8, 2021
Docket1:20-cv-07196
StatusUnknown

This text of Mario Tricoci Hair Salons & Day Spas, LLC d/b/a Tricoci Salon and Spa v. Sloat (Mario Tricoci Hair Salons & Day Spas, LLC d/b/a Tricoci Salon and Spa v. Sloat) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mario Tricoci Hair Salons & Day Spas, LLC d/b/a Tricoci Salon and Spa v. Sloat, (N.D. Ill. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

MARIO TRICOCI HAIR SALONS ) & DAY SPAS, LLC, ) ) Plaintiff, ) ) vs. ) Case No. 20 C 7196 ) MOLLY SLOAT and ) CLAUDIA POCCIA, ) ) Defendants. )

MEMORANDUM OPINION AND ORDER

MATTHEW F. KENNELLY, District Judge:

Plaintiff Mario Tricoci Hair Salons & Day Spas, LLC has moved for a preliminary injunction to bar defendants Claudia Poccia and Molly Sloat from working for Frederic Fekkai, or alternatively from any involvement in Fekkai's relationship with ULTA, a retail chain, for a six-month period; from soliciting Tricoci employees; from using Tricoci's confidential information; and to require them to return any information from Tricoci. Poccia and Sloat have agreed to entry of a preliminary injunction that includes the last three elements (with some variation), but they oppose the non-competition relief sought by Tricoci. The Court, with the parties' agreement, received evidence in the form of affidavits, deposition testimony, and documents. The Court also heard oral argument. This constitutes the Court's findings of fact and conclusions of law under Federal Rule of Civil Procedure 52(a). Facts Tricoci owns and operates a number of beauty salons and spas in the Chicago area. It also sells haircare and other products. During the time relevant to this case, Tricoci sold its haircare products at its salons and also via its website.

Federic Fekkai is also in the haircare business. It operates salons in New York City, but that does not appear to be the primary focus of its business. Rather, it focuses largely on selling "prestige" haircare products, which (at least currently) are sold through retail outlets like ULTA and Sephora. As best as the Court can make out, Fekkai is owned by a holding company called Blue Mistral, which appears to be a joint venture between Mr. Fekkai and a venture capital firm. 1. Poccia In 2018, Tricoci formulated a growth strategy to redevelop its products and place them in national retail distribution networks. To this end, it hired Poccia as a paid consultant, with an eye to making her an executive of the company. Poccia has

extensive experience in the beauty industry, both in the corporate suite and as a consultant. In her counsel's words, she "specializes in reinvigorating brands and products to make them viable for broader distribution to target audiences." Def. Poccia's Opp. to Pl.'s Am. Mot. for Prelim. Inj. (dkt. no. 94) at 1. Poccia signed a consulting agreement with Tricoci in February 2019. Poccia Affid., Ex. A (dkt. no. 94-2). It covered a six-month term and included an understanding that the parties would enter into an extension or replacement agreement and that if they did not, the existing agreement would continue on a month-to-month basis. Poccia was to serve as an independent contractor but would act as Tricoci's "interim president," and the agreement stated that the parties had the "intention [for Poccia] to move into a permanent C-Suite role based on viability of effective impact on business and team . . . ." Id., ECF p. 11 of 71. Poccia's responsibilities under the agreement included product development,

branding, and packing, retail, and merchandising. The agreement contemplated that Poccia would direct and work with a team at Tricoci to develop and implement a brand strategy to broaden the distribution of Tricoci-branded products. Tricoci agreed to pay Poccia a hefty salary—$30,000 per month plus expenses. Poccia's agreement with Tricoci barred her, during the period she provided services to Tricoci, from directly or indirectly engaging in any competing business "anywhere in the Territory," defined as any city in which Tricoci had or was negotiating a lease. Id., ECF p. 3 of 71. The agreement also barred her from soliciting any customer or client with which she had direct contact while providing services to Tricoci. In addition, the agreement barred Poccia from soliciting any Tricoci employee or

representative for employment. It also required Poccia to maintain in confidence and not use for her own or another's benefit any "Confidential Information" of Tricoci, a broadly-defined term that essentially included any information regarding Tricoci, its products, its marketing, and its customers. Id., ECF p. 4 of 71. Upon execution of the agreement, Poccia immediately began working with Tricoci. Less than two weeks after she signed the agreement, Poccia sent Chris Santiago, Tricoci's chief executive officer, a document outlining a growth strategy. It included prioritizing personal care-oriented retail chains such as ULTA and Sephora. Poccia continued to work on developing the strategy—which involved upgrading Tricoci's existing haircare product line and developing new brands for retail sale— throughout 2019 and into early 2020. Her work involved overseeing product development, formulas, pricing, and creative work relating to marketing. On or about March 20, 2020, Tricoci advised Poccia that her contract would be

terminated effective immediately due to the impact of pandemic-related restrictions on the company's revenue. Tricoci said it would pay Poccia only through the end of March. Poccia agreed to finalize some projects for Tricoci free of charge through the summer of 2020. The Tricoci growth strategy had not been finalized and implemented by the end of March 2020, despite the fact that Poccia had been working for the company for a little over a year at that point. Poccia says this is due to, at least in part, the fact that the strategy required reformulation of Tricoci's products, which took time. Tricoci has suggested that at some point Poccia's efforts to implement the company's strategy slacked off due to the diversion of her focus to similar work for Fekkai. That is certainly

one possible explanation, but the current record includes insufficient evidence to allow a finding on this point to be made one way or the other. It appears that Tricoci did not actually approach ULTA until the fall of 2020. At that point, Tricoci's products were outside of ULTA's buying cycle, so the company rebuffed Tricoci's overture. On the record currently before the Court, the failure (at that point) of the hoped-for relationship cannot be laid at Poccia's feet. As best as one can determine, Tricoci's pause in its rebranding effort was caused by the pandemic, not Poccia's faithlessness. 2. Sloat Tricoci hired defendant Molly Sloat in early March 2019 as vice president of marketing. Her duties included responsibility for carrying out the rebranding strategy with the goal of placing Tricoci's products with national retailers. Sloat's employee agreement, see Pl.'s Am. Mem. of Law, Ex. 12 (dkt. no. 59-1), precluded her, during her

employment with Tricoci, from working for any other entity that provided salon services geographically contiguous to those provided by Tricoci and from engaging in self- employment in competition with Tricoci. The agreement also precluded Sloat from, among other things, rendering services for a six-month period to any competitor, defined as any entity offering salon services with five miles of any Tricoci salon. See id., ECF p. 68 of 534. The agreement also barred Sloat from disclosing, or using other than for her Tricoci employment, any confidential information, a term with a broad definition similar to the one in Poccia's agreement. See id. 3. Poccia and Sloat's work for Fekkai The evidence reflects that in or about March 2019, less than a month after

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Mario Tricoci Hair Salons & Day Spas, LLC d/b/a Tricoci Salon and Spa v. Sloat, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mario-tricoci-hair-salons-day-spas-llc-dba-tricoci-salon-and-spa-v-ilnd-2021.