QF Holdings, Inc. and Qualifacts Systems, LLC v. Subrata Choudhury

CourtDistrict Court, M.D. Tennessee
DecidedMay 1, 2026
Docket3:25-cv-00914
StatusUnknown

This text of QF Holdings, Inc. and Qualifacts Systems, LLC v. Subrata Choudhury (QF Holdings, Inc. and Qualifacts Systems, LLC v. Subrata Choudhury) is published on Counsel Stack Legal Research, covering District Court, M.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
QF Holdings, Inc. and Qualifacts Systems, LLC v. Subrata Choudhury, (M.D. Tenn. 2026).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF TENNESSEE NASHVILLE DIVISION

QF HOLDINGS, INC. and QUALIFACTS ) SYSTEMS, LLC, ) ) Plaintiffs, ) ) v. ) Case No. 3:25-cv-00914 ) Judge Aleta A. Trauger SUBRATA CHOUDHURY, ) ) Defendant. )

MEMORANDUM Defendant Subrata Choudhury has filed a Motion to Dismiss (Doc. No. 23) under the doctrine of forum non conveniens, which, for the reasons set forth herein, will be denied. I. FACTS Plaintiff Qualifacts Systems, LLC (“Qualifacts”) is a subsidiary of plaintiff QF Holdings, Inc. (“QF”). (Compl., Doc. No. 1 ¶ 5.) They share a Nashville address. (Id. ¶¶ 1–2.)1 Qualifacts develops and sells electronic health records systems and software. (Id. ¶ 17.) Defendant Choudhury, a citizen and resident of India, is a software engineer. (Id. ¶¶ 6, 15, 37–38.) Until he was terminated just before this suit was filed, Choudhury was Managing Director and Senior Director of Engineering at IHCS Technologies Private Limited (“IHCS”), which was formerly owned by InSync Healthcare Solutions, LLC (“InSync”). (Id. ¶¶ 7–9, 12.) Choudhury began working for IHCS in 2012, which at the time went by a different name. (Id. ¶ 10–11.) In 2021, QF

1 QF is a Delaware corporation with its principal place of business in Nashville. (Doc. No. 6 at 1.) Qualifacts is a “Delaware limited liability company” with its principal place of business in Nashville. (Doc. No. 7 at 3.) acquired IHCS; as a result, IHCS became a subsidiary of QF and IHCS’ employees, including the defendant, became “part of the Qualifacts family of companies and . . . subject to the policies and requirements of Qualifacts.”2 (Id. ¶¶ 13–14, 36.) The plaintiffs allege that, during his employment, and in violation of several contracts, Choudhury competed against Qualifacts, including by

soliciting co-workers to set up competing companies by using proprietary information. (Compl. ¶¶ 71–153.) Relevant to the now-pending Motion to Dismiss are certain contracts the plaintiffs have filed as Exhibits to the Complaint, which relate to the defendant’s employment and which the court will briefly describe. Of note is the fact that two contracts have mandatory arbitration provisions and one has a mandatory forum selection clause. IHCS Agreement The Confidentiality and Repayment/Reimbursement of Cost of Training Agreement (“IHCS Agreement”) is between Choudhury and IHCS3 and was executed in 2018, years before QF acquired IHCS. (Doc. No. 1-1 at 1, 5.) Therein, Choudhury agreed to “comply with all

Company rules, procedures, and standards.” (Id. at 2.) Specifically, he agreed to maintain confidentiality, not to use proprietary information “for any other company,” and to remain with IHCS for at least eighteen months or else repay the cost of recruitment and training. (Id. at 2–4.) In addition, he agreed to a non-compete provision. (Id. at 4.) The IHCS Agreement includes a

2 In another filing, the plaintiffs refer to IHCS as “Qualifacts’ Indian subsidiary.” (Doc. No. 11 at 2.) 3 The court observes that the IHCS Agreement identifies Choudhury’s counterparty and employer as “IHCS Technologies India Pvt. Ltd,” while both parties omit “India” from its name. (Contrast Doc. No. 1-1 at 1, with Compl. ¶ 7, and Doc. No. 23-1 at 2.) The parties do not make an issue of this, so neither will the court. mandatory arbitration provision, specifying that the arbitration will be conducted in India. (Id. at 5.) It does not contain a choice of law provision. Retention Agreement In December 2021,4 Choudhury signed the Retention Agreement with QF. (Doc. No. 1-3

at 1, 8.) The Retention Agreement “was designed to retain Defendant’s employment following the sale of InSync to QF.” (Compl. ¶ 57.) In exchange for remaining with IHCS, Choudhury was to receive, and did receive, a $750,000 “Retention Bonus.” (Doc. No. 1-3 at 3; Compl. ¶ 58.) One of the terms of the Retention Agreement is that Choudhury sign and abide by a separate Restrictive Covenant Agreement. (Doc. No. 1-3 at 3.) And the Retention Agreement specifies that, if Choudhury breaches either the Retention Agreement or the Restrictive Covenant Agreement, he would have to return the Retention Bonus. (Id. at 3–4.) The Retention Agreement includes a Florida choice of law provision, “without giving effect to the conflict of laws principles” of Florida, and an Eleventh Circuit choice of law provision “with respect to any disputes concerning federal law.” (Id. at 6–7.) It provides that “any dispute

arising out of or relating to this Agreement . . . shall be finally settled by binding arbitration” in Florida. (Id. at 6.)5 The Restrictive Covenant Agreement

4 The Retention Agreement leaves a blank space for the day in its first sentence and the signatures are undated. (Doc. No. 1-3 at 1, 8 (indicating that the Retention Agreement is “executed as of the day and year set forth above”).) 5 In addition, the Retention Agreement provides that it supersedes all other agreements between the parties on the same subject matter. (Doc. No. 1-3 at 5.) However, no party argues that the Retention Agreement supersedes the IHCS agreement, and, as the court will discuss, one of the plaintiffs’ causes of action is breach of the IHCS Agreement. (Compl. at 20 (Count I); accord id. ¶ 155 (“The IHCS Agreement is a valid and enforceable agreement.”).) On December 12, 2021, Choudhury signed the Proprietary Information, Non-Solicitation, Noncompetition, and Inventions Agreement (“Restrictive Covenant Agreement”).6 (Doc. No. 1-4 at 1, 3.) The Restrictive Covenant Agreement provides that it “will be governed by and construed according to the laws of the State of Tennessee” (id. at 3), and it provides that the “exclusive venue

for any action to enforce this Agreement will be the state courts located in Davidson County, Tennessee or the federal court located in the Middle District of Tennessee.” (Id.) In addition, the Agreement states that the parties agree to the personal jurisdiction of those courts and “waive any defense of inconvenient forum to the maintenance of any action or proceeding to be brought.” (Id.) II. PROCEDURAL HISTORY The plaintiffs invoke this court’s jurisdiction under 28 U.S.C. § 1332(a), on the basis of complete diversity of citizenship among the parties and the requisite amount in controversy. (Compl. ¶ 15.) The Complaint alleges breach of each of the three contracts the court has described. (Count I (Breach of IHCS Agreement), id. ¶¶ 154–60; Count II (Breach of Retention Agreement), id. ¶¶ 161–65; Count III (Breach of Restrictive Covenant Agreement), id. ¶¶ 166–75.) In addition, the Complaint alleges breach of fiduciary duty of loyalty (Count IV, id. ¶¶ 176–179), conspiracy

to breach fiduciary duty of loyalty (Count V, id. ¶¶ 180–86), and fraudulent concealment (Count VI, id. ¶¶ 187–95). The Complaint makes clear that Counts IV–VI are not tied to one particular contract. For example, the plaintiffs allege that Choudhury “breached his duty of loyalty given his various breaches of contract.” (Id. ¶ 178.) The plaintiffs seek the return of the Retention Bonus, damages, costs, and fees, and a court order requiring the defendant and “all parties in active concert or in participation with him” to return all proprietary information to the plaintiffs. (Id. at 25–26.)

6 While the contract leaves a space for the signature of Qualifacts Systems, Inc., Qualifacts’ predecessor (Compl. ¶ 4), it is blank. (Doc. No. 1-4 at 3.) The Complaint also seeks a Temporary Restraining Order (“TRO”), Preliminary Injunction (“PI”), and a Permanent Injunction. (Id. at 25.) Soon after filing the Complaint, the plaintiffs filed a Motion for TRO and PI. (Doc. No. 10.) After a TRO hearing, the court entered a TRO enjoining the defendant from violating the

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QF Holdings, Inc. and Qualifacts Systems, LLC v. Subrata Choudhury, Counsel Stack Legal Research, https://law.counselstack.com/opinion/qf-holdings-inc-and-qualifacts-systems-llc-v-subrata-choudhury-tnmd-2026.