OSRX, Inc. v. Gregory Anderson

Court of Appeals for the Fourth Circuit·Decided May 19, 2025·No. 23-1252·Unpublished

Opinion

UNPUBLISHED

UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT

No. 23-1252

OSRX, INC.; OCULAR SCIENCE, INC., Plaintiffs – Appellants,

v.

GREGORY ANDERSON; IMPRIMISRX, LLC, Defendants – Appellees.

Appeal from the United States District Court for the District of South Carolina, at Greenville. Timothy M. Cain, District Judge. (6:22-cv-01737-TMC)

Argued: March 4, 2025 Decided: May 19, 2025

Before DIAZ, Chief Judge, AGEE and BENJAMIN, Circuit Judges.

Affirmed in part, vacated in part, and remanded by unpublished opinion. Judge Agee wrote the opinion, in which Chief Judge Diaz and Judge Benjamin joined.

ARGUED: Adam C. Bach, TONNSEN BACH, LLC, Greenville, South Carolina, for Appellants. Keith Joseph Wesley, ELLIS GEORGE LLP, Los Angeles, California, for Appellees. ON BRIEF: Derek D. Tarver, Columbia, South Carolina, Robert C. Van Arnam, WILLIAMS MULLEN, Raleigh, North Carolina, for Appellants. Matthew L. Venezia, Los Angeles, California, Christopher Landau, Vincent Li, ELLIS GEORGE CIPOLLONE O’BRIEN ANNAGUEY LLP, Washington. D.C.; Richard J. Morgan, BURR & FORMAN LLP, Columbia, South Carolina, for Appellee.

Unpublished opinions are not binding precedent in this circuit.

AGEE, Circuit Judge:

Gregory Anderson worked for OSRX, Inc. and Ocular Science, Inc. (together, “Plaintiffs”) for a couple of years as a Vice President of Sales before he was demoted. Shortly after his demotion, Anderson started working for Plaintiffs’ market rival, ImprimisRx, LLC, and, according to Plaintiffs, brought along with him trade secrets and other confidential information he obtained while working for them. Plaintiffs sued Anderson and ImprimisRx (together, “Defendants”) for their allegedly unlawful actions surrounding that transition and moved to enjoin Anderson from working for his new employer. Both Defendants separately moved to dismiss. Anderson argued that the terms of his old employment contract require that any claims Plaintiffs had against him were subject to arbitration, while ImprimisRx claimed that the district court lacked personal jurisdiction over it.

The district court agreed with Defendants, dismissed the case, and denied Plaintiffs’

motion for a preliminary injunction as moot. For the reasons below, we affirm the district court’s decision to compel Plaintiffs’ claims against Anderson to arbitration but vacate and remand its finding that it lacked personal jurisdiction over ImprimisRx. Because the latter decision means Plaintiffs’ preliminary injunction motion is no longer moot, we vacate the district court’s decision on that motion as well.

I.

OSRX is an ophthalmic pharmaceutical company that produces specialized eye drops. Ocular Science is a biotechnology company. Though separate, the entities are

intertwined—Ocular Science “provides management and administrative services to OSRX, including marketing, sales, operations, finance, human resources, and distribution of OSRX products, pursuant to a written agreement between the parties.” J.A. 12–13.

ImprimisRx is another ophthalmic pharmaceutical company and, as such, is alleged to be Plaintiffs’ rival. Its sole member is a company called Harrow Health, which is incorporated in Delaware and headquartered in Tennessee. Plaintiffs and ImprimisRx both market, sell, and distribute their products nationally, including to customers in South Carolina.

In 2019, Anderson, a South Carolina resident, signed an employment agreement with Ocular Science to become its Vice President of Sales. And though OSRX was not a party to that contract, Anderson took on the same title and role for OSRX at that time as well. He was demoted after a couple of years to the role of “National Consultant” for Plaintiffs in late 2021 and executed another employment agreement with Ocular Science.

Those employment contracts had two provisions relevant to this appeal. First, they included standard confidentiality provisions, which required Anderson to not use or disclose confidential information outside of his work for Plaintiffs, including after his employment. And second, they contained a two-way arbitration provision, whereby both parties agreed to arbitrate any “employment-related dispute” or claim “arising out of, relating to, or resulting from [Anderson’s] employment.” J.A. 176; see id. (“[T]his Agreement to arbitrate also applies to any disputes that the company may have with me.”).

In April 2022, just months after his demotion, Anderson attended an ophthalmology conference in Washington D.C. and met with ImprimisRx’s CEO about heading up their

national sales team. He flew to Nashville the following week to discuss potential future employment with more ImprimisRx executives. According to Anderson, he never disclosed that he lived in South Carolina or “intended to work remotely from South Carolina” to anyone at ImprimisRx during those meetings. J.A. 168.

Anderson resigned from his employment with Plaintiffs on Friday, May 6, 2022, and began working as the Vice President of Sales for ImprimisRx the following Monday, May 9. According to Plaintiffs, ImprimisRx sought to hire Anderson so that he could provide them with confidential information that he obtained from Plaintiffs. Indeed, in the weeks leading up to his resignation, Anderson allegedly e-mailed himself (or copied onto a personal flash drive) certain of Plaintiffs’ trade secrets and other confidential information. And since he began working for ImprimisRx, he has allegedly used those trade secrets to his and his new employer’s benefit by poaching Plaintiffs’ former customers. At all relevant times, Anderson worked remotely from his home in South Carolina.

Plaintiffs filed an amended complaint the next month in the District of South Carolina, 1 seeking to prevent Anderson from working for their competitor and to hold him and ImprimisRx accountable for conspiring to “misappropriate [their] confidential information and trade secrets and use them for [ImprimisRX’s] commercial benefit.” J.A. 10. Plaintiffs brought nine statutory and common law causes of action in total: (1) misappropriation of trade secrets in violation of the South Carolina Trade Secrets Act

1

Plaintiffs originally filed suit against Anderson alone but amended their complaint to add ImprimisRx as a defendant.

and (2) the federal Defend Trade Secrets Act; (3) intentional interference with contractual relations and (4) prospective contractual relations; (5) breach of contract; (6) breach of fiduciary duty; (7) breach of common law duty of loyalty owed by an employee; (8) tortious interference with contract; and (9) aiding and abetting breach of fiduciary duty. 2 Shortly after filing the amended complaint, Plaintiffs moved for a preliminary injunction to prevent Anderson from working for ImprimisRx.

Both Defendants separately moved to dismiss Plaintiffs’ amended complaint.

Anderson filed a motion to dismiss and compel arbitration under Fed. R. Civ. P. 12(b)(3) and the Federal Arbitration Act, per the terms of his employment agreements. Plaintiffs challenged Anderson’s motion on three grounds: (1) OSRX was not bound to arbitrate any claim because the contract was between Anderson and Ocular Science; (2) the arbitration provision did not cover claims arising out of Anderson’s misconduct at Imprimis; and (3) even if all claims were subject to arbitration, Plaintiffs were still entitled to preliminary relief. In reply, Anderson argued for the first time that OSRX should be equitably estopped from denying the enforceability of the arbitration provision because though it was not technically a signatory to the employment agreement, it received direct benefits from that contract.

ImprimisRx moved to dismiss for lack of personal jurisdiction because it did not have sufficient minimum contacts within South Carolina for that purpose, or alternatively

2

The first four counts are alleged against both defendants; five through seven against Anderson only; and eight and nine against ImprimisRx only.

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