Precisionir Inc. v. Clepper

693 F. Supp. 2d 286, 2010 U.S. Dist. LEXIS 20249, 2010 WL 779298
CourtDistrict Court, S.D. New York
DecidedMarch 1, 2010
Docket08 Civ. 6389(VM)
StatusPublished
Cited by3 cases

This text of 693 F. Supp. 2d 286 (Precisionir Inc. v. Clepper) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Precisionir Inc. v. Clepper, 693 F. Supp. 2d 286, 2010 U.S. Dist. LEXIS 20249, 2010 WL 779298 (S.D.N.Y. 2010).

Opinion

DECISION AND ORDER

VICTOR MARRERO, District Judge.

Plaintiff PrecisionIR Inc. (“PreeisionIR”) brought this action against defendants Brent A. Clepper (“Clepper”) and TalkPoint Holdings, L.L.C. d/b/a/ Talk-Point Communications (“TalkPoint”) (collectively, “Defendants”). PrecisionIR’s amended complaint, dated November 17, 2009 (the “Amended Complaint” or “Am. Compl.”), asserts three counts relating to Clepper’s departure as a PrecisionIR employee and work as an employee of Talk-Point: (1) breach of contract against Clepper; (2) intentional interference with business relations, employer-employee relations, and contracts against TalkPoint; and (3) conspiracy under Virginia Code § 18.2-499, Va.Code Ann. § 18.2-499 (“ § 18.2-499” or “Statutory Conspiracy”). Defendants now move for summary judgment pursuant to Federal Rule of Civil Procedure 56 (“Rule 56”), alleging that PrecisionIR’s breach of contract claim fails as a matter of law because it is based on an unenforceable agreement and that PrecisionIR fails to present facts to support any of its three causes of action sufficient to preclude summary judgment. For the reasons discussed below, Defendants’ motion is DENIED.

I. BACKGROUND 1

PrecisionIR is a company that provides webcasting and related services to organi *289 zations around the United States and Canada. According to PrecisionIR, it competes directly with TalkPoint for web-casting clients.

On August 20, 2004, Clepper accepted employment with PrecisionIR and signed a confidentiality and non-competition agreement (the “Employment Agreement”). The Employment Agreement contains several provisions relating to the issues here in dispute, including: non-competition with PrecisionIR (the “Non-Competition Provision”), non-solicitation of PrecisionIR clients with whom Clepper had contact at PrecisionIR (the “Non-Solicitation Provision”), non-raiding of employees (the “Non-Raiding Provision”), notice of employment offers (the “Offer-Notice Provision”), and confidential information (the “Confidential-Information Provision”). These provisions read:

Non-Competition. During my employment with the Company and for a period of six (6) months following the date of voluntary or involuntary termination of my employment, regardless of reason, I will not compete with the Company in the United States or Canada. I understand that the preceding sentence does not prevent me from working in a capacity that does not involve the same or similar duties, responsibilities or assignments as those I performed while employed by the Company.
Non-Solicitation.... During my employment with the Company and for a period of six (6) months following the date of voluntary or involuntary termination of my employment, regardless of reason, I will not provide or solicit to provide any person or entity that was a client of the Company in the United States or Canada with whom I had contact as a result of my employment with the Company.
Non-Raiding. During my employment with the Company and for a period of
six (6) months following the date of voluntary or involuntary termination of my employment, regardless of reason, I will not hire or solicit to hire any employee of the Company for employment other than with the Company in the United States or Canada.
Notice of Conflicts.... I agree to notify my direct supervisor at the Company in writing within three (3) business days after receiving an offer of employment from any employer that competes with the Company. I understand that the giving of such notice does not relieve or alter any of my other obligations under this Agreement.
Confidential Information.... I will not disclose any Confidential Information to others outside the Company or use any Confidential Information for any other purposes, either during or after my employment, unless and until such Confidential Information has become public knowledge without fault by me. All written or other tangible material containing Confidential Information shall be delivered to the Company upon the earlier of a request by the Company or the termination of my employment.

(Employment Agreement ¶¶ 3, 5-7, 10.) The Employment Agreement also contains an acknowledgment regarding the reasonableness of these restrictions:

Reasonableness of Restrictions. I acknowledge that the terms of this Agreement are reasonable in light of the Company’s interest in protecting its business, clients and employees, and that the restrictions in this Agreement will not prevent me from earning a living whether in the investor relations or financial services industries or otherwise. I acknowledge that the geographic scope of the above restrictions on employment is reasonable because the Company has clients and does business *290 over the Internet and through other media throughout the United, States and Canada.

(Id. ¶ 8 (emphasis added).)

When Clepper began this employment at PreeisionIR in August of 2004, he worked under the title of Director of Business Development for Investment Companies. In October 2005, PreeisionIR promoted Clepper to a sales position with even more responsibility relating to its webcasting business. Clepper’s new position required him to “[d]evelop client sales plants] to profitably acquire new and retain existing channel sales clients for [PrecisionlR’s] webcasting services (www.vcall. com) within North America.” (Transmittal Declaration of Adam B. Michaels, dated January 22, 2010 (“Michaels Deck”), Ex. M (emphasis added).)

In July of 2006, Clepper started a job search. On January 26, 2007, Steve Rubin (“Rubin”), Vice President of Channel Sales at TalkPoint, sent an email to Clepper that mentions Clepper’s decision to join Talk-Point. On January 29, 2007, Rubin sent Clepper a formal offer letter and confidentiality agreement. On the same day, Clepper resigned from PreeisionIR via telephone. According to PreeisionIR, Clepper did not notify it of TalkPoint’s offer of employment. On February 13, 2007, Clepper submitted his formal resignation via email with two weeks’ notice, writing that he was going to work for his uncle’s construction business in New York. A week later, on February 20, 2007, Clepper started as the Director of Global Alliance for TalkPoint.

When Clepper was in the process of leaving PreeisionIR and joining TalkPoint, Rubin asked Clepper if he had an employment agreement that limited his ability to join TalkPoint. According to TalkPoint, Clepper told Rubin that he did not, even though he had signed the Employment Agreement about two and a half years earlier.

At TalkPoint, Clepper’s responsibility included managing existing clients and prospects for new clients for TalkPoint’s webcasting services. Clepper does not have a region in which he works, though his clients are primarily in the United States. According to PreeisionIR, Clepper marketed webcasting services to existing and prospective clients throughout the United States and Canada.

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Bluebook (online)
693 F. Supp. 2d 286, 2010 U.S. Dist. LEXIS 20249, 2010 WL 779298, Counsel Stack Legal Research, https://law.counselstack.com/opinion/precisionir-inc-v-clepper-nysd-2010.