MuniCap, Inc. v. Thaddeus Wilson, et al.

CourtDistrict Court, D. Maryland
DecidedNovember 20, 2025
Docket1:24-cv-01274
StatusUnknown

This text of MuniCap, Inc. v. Thaddeus Wilson, et al. (MuniCap, Inc. v. Thaddeus Wilson, et al.) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MuniCap, Inc. v. Thaddeus Wilson, et al., (D. Md. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND

* MUNICAP, INC. * * Plaintiff, * * Civil Case No.: SAG-24-1274 v. * * THADDEUS WILSON, et al. * * Defendant. * * * * * * * * * * * * * * * MEMORANDUM OPINION Plaintiff MuniCap, Inc. (“MuniCap”), a Maryland-based public finance consulting firm, originally filed this lawsuit against its former employee, Thaddeus Wilson, alleging that Wilson’s post-termination conduct violated the terms of his employment contract and the Maryland Uniform Trade Secrets Act, Md. Code. Ann., Com. Law, § 11-1201, et seq. ECF 1. Following preliminary motions practice and the commencement of discovery, MuniCap amended its complaint to add claims against Water Street Public Finance, LLC (“WSPF”), a single-member LLC operated by Wilson. ECF 63. WSPF has filed a motion to dismiss the claims against it, citing a number of grounds, including lack of personal jurisdiction. ECF 86. MuniCap opposed the motion, ECF 90, and WSPF filed a reply, ECF 92. No hearing is necessary. See Loc. R. 105.6 (D. Md. 2025). Because this Court agrees that it lacks personal jurisdiction over WSPF, it will transfer venue of this case to the District of South Carolina pursuant to 28 U.S.C. § 1406 and will defer adjudicating the remaining arguments in WSPF’s motion. I. BACKGROUND The following facts are largely derived from the Amended Complaint, ECF 63, and from the exhibits to WSPF’s motion to dismiss, ECF 86. MuniCap is a Maryland-based public finance consulting firm specializing in public financing related to real estate development. ECF 63¶ 3. Defendant Thaddeus Wilson is a citizen

of South Carolina who was employed byMuniCap from December 9, 2008, to April 12, 2024. Id. ¶ 4. WSPF is a limited liability company headquartered and organized in South Carolina. Id. ¶ 5. WSPF was incorporated on April 11, 2024. ECF 86-2. Wilson is its president and sole member. ECF 63 ¶ 5. WSPF has no members or employees who reside or work in Maryland, has no equipment or computer servers in Maryland, and has no clients in Maryland. ECF 86-5 ¶¶ 9–11. Upon his hiring at MuniCap, Wilson received a detailed offer letter, stating that, “Your position will include significant exposure to corporate trade secret information. This information is subject to restrictions by the Uniform Commercial Code (UCC) and the ‘Employee Confidential Information and Consulting Agreement’ attached to this letter.” ECF 63 ¶ 6. The Employee

Confidential Information and Consulting Agreement (“the Agreement”), which was attached to the offer letter, further elaborated that by accepting employment at MuniCap, Wilson agreed that he would: not disclose to anyone outside of the Company [i.e., MuniCap] and will not use other than for the benefit of the Company any information of confidential or proprietary nature concerning the Company’s or any of its affiliates’ business matters of affairs (‘Confidential Information’) including but not limited to computer models, documents, product plans, strategic and tactical plans, growth plans, business plans, or identity of information about customers/clients and their needs or requirements, all of which shall be considered confidential or proprietary unless Company specifies in writing that it is not confidential or proprietary. Id. ¶7; ECF 1-3 ¶1. The Agreement required an employee to return all confidential information to MuniCap upon termination, and clarified that any confidential information was MuniCap’s property. ECF 63 ¶8.; ECF 1-3 ¶3. Finally, in the event that an employee decided to end his employment with MuniCap, the Agreement provided MuniCap with an option to require the employee to provide consulting services to MuniCap after termination—essentially, a noncompete

agreement. ECF 63 ¶ 9; ECF 1-3 ¶ 4. MuniCap was required to inform a former employee of whether it intended to exercise the right within thirty business days of the employee’s resignation. ECF 63¶9; ECF 1-3 ¶ 4. If MuniCap exercised the right, during the consulting period, the former employee agreed that all clients of MuniCap or prospective clients of MuniCap he had worked with during his employment would be considered the clients of MuniCap, and that he would not solicit business from, contract with, or perform work for those clients during the consulting period. ECF 63 ¶ 9–10; ECF 1-3 ¶ 4.4. Wilson signed the letter and the Agreement in 2008. ECF 63 ¶ 11. He also received a copy of MuniCap’s employee handbook, which outlined policies surrounding confidentiality and trade secrets. Id. ¶ 12.

Throughout his fifteen-year employment, Wilson had access to MuniCap’s confidential information and proprietary documents, and, in particular, client information. Id. ¶13. He was an Executive Vice President when he resigned via email on April 12, 2024. Id. ¶¶ 4, 14. Wilson spoke with MuniCap President Keenan Rice the following Monday, April 15, 2024, and indicated that he planned to go into business for himself and hoped to take the clients with whom he had worked while employed at MuniCap with him. Id. ¶¶ 11, 15. Wilson and Rice discussed MuniCap’s option of exercising its right to a twelve-month consulting period. Id. ¶ 16. Wilson “insinuated that if MuniCap chose to exercise its rights . . . he would not be cooperative.” Id. MuniCap informed Wilson (through an email from Rice) that it would exercise its right to a twelve-month consulting period that same morning. Id. ¶17. Early that afternoon, Rice emailed Wilson again and reminded him that, under the Agreement, he was prohibited from doing business with MuniCap’s clients for the duration of the consulting period, unless he was doing so on behalf of MuniCap. Id. ¶18. Two hours later, Rice emailed Wilson a third time, reiterating that Wilson was not permitted to contact MuniCap clients except on behalf of MuniCap. Id. ¶ 19.

But later that same day, a MuniCap client, D.R. Horton, Inc., informed MuniCap that it had been contacted by Wilson, who was seeking to continue working with D.R. Horton, Inc. through his new business, WSPF. Id. ¶ 20. Rice emailed Wilson to express that, per the Agreement, he could not work for D.R. Horton, Inc. without MuniCap’s consent. Id. He further explained that any work with a government agency (like D.R. Horton, Inc. and most MuniCap clients, as a municipal consulting firm) would require a consent to assignment signed by MuniCap, and that MuniCap was not prepared to consent to an assignment. Id. Over the next two weeks, MuniCap became aware that Wilson had solicited business from, contracted with, or performed work for six other MuniCap clients outside of his consulting

agreement: Youngblood; the City of Hardeeville, South Carolina; SRE Santini, LLC; the City of North Myrtle Beach, South Carolina; Weber USA Corporation; and Public State Ports Authority. Id. ¶¶ 21–36. Several of these clients accidentally emailed Wilson at his former MuniCap email address, and those communications revealed that Wilson had shared documents obtained during his employment with MuniCap and redirected documents intended for MuniCap to his private accounts. Id. ¶¶ 27, 30, 34. Although MuniCap instructed Wilson to return his company computer upon his resignation, he kept it and used confidential information stored on it to solicit MuniCap’s clients. Id. ¶ 35. MuniCap believes that “Wilson has used and relied upon MuniCap’s confidential information and trade secrets” such as “data related to the cost of . . .projects, development plans for particular properties, and the results of calculations obtained through the use of MuniCap’s computer models,” which are “highly complex calculations that were developed by MuniCap and are not publicly available.” Id. ¶ 38. MuniCap filed this lawsuit on April 30, 2024, seeking damages for breach of contract

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MuniCap, Inc. v. Thaddeus Wilson, et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/municap-inc-v-thaddeus-wilson-et-al-mdd-2025.