Ranger Environmental Services LLC v. Foehl

District Court, S.D. Alabama·Decided October 19, 2023·No. 1:23-cv-00297·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF ALABAMA SOUTHERN DIVISION

RANGER ENVIRONMENTAL SERVICES ) LLC, ) Plaintiff, ) ) vs. ) CIVIL ACTION 1:23-00297-KD-M ) CARL FOEHL, et al., ) Defendants. )

ORDER

This matter is before the Court on Plaintiff’s Motion and Memorandum in Support of Preliminary Injunction (Doc. 15); Defendants’ Response (Doc. 25), and the September 19-21, 2023 evidentiary hearing (including exhibits (Doc. 31)); Defendants’ Motion to Dismiss (Doc. 18), Plaintiff’s Response (Doc. 35), and Defendants’ Reply (Doc. 38); and Plaintiff’s First Amended Complaint (Doc. 34). I. Factual Background A. The Parties Plaintiff Ranger Environmental Services, LLC (Ranger) is an Alabama limited liability company with its primary location in Mobile, AL, with non-party Alabama resident members James Timothy Turner (President) and Gypsy Elana Turner (Vice-President). (Doc. 5). Non-party Clay Turner is Ranger’s General Manager, and oversees all operations vetting, customer relations, overall performance, etc. (Hrg. Test. Clay Turner; Hrg. Test. Elana Turner; Hrg. Test. Foehl). Ranger conducts business in Mobile, Jefferson, and Morgan Counties in AL; in Fulton County, GA; and Jackson and Harrison Counties in MS. (Doc. 34). Ranger’s annual revenues derive, in substantial part, from performing environmental, industrial, civil infrastructure, and commercial services for its customers. (Hrg. Test. Clay Turner). However, Ranger began performing maritime cleaning services in 2015 (e.g., debunking, offloading fuels/petroleum, cleaning maritime spaces, preparing tanks on vessels for hot work, vacuum hydro-blasting in tanks (tank cleaning), and waste transportation) to customers in various maritime markets including Alabama. (Id.) Defendant Wellbuilt Environmental Solutions, LLC (Wellbuilt) is an Alabama limited liability company with offices in Mobile, AL and Gonzalez, LA; its members are non-party Alabama residents Sonya Gomel and Spencer Tuel. (Docs. 20, 33). Wellbuilt provides environmental, industrial, commercial, and maritime cleaning services, including vacuum hydro-blasting, tank cleaning, and waste transportation, and does so within various maritime markets including Alabama and Louisiana. Wellbuilt is a maritime cleaning services competitor of Ranger. (Hrg. Test. Salley; Hrg. Test. Clay

Turner; Hrg. Test. Foehl; Hrg. Test. Elana Turner). Defendant Carl Foehl (Foehl) is an Alabama resident and former employee of Ranger from 2/9/16-7/9/23 (Maritime Manager). (Hrg. Test. Foehl). Following his departure from Ranger, Foehl became Wellbuilt’s Louisiana Maritime/Marine Manager, where he is currently employed. At present, Foehl works out of Wellbuilt’s primary facility in Gonzalez, LA, as well as out of Mobile, AL location (remotely, as his home is based there), soliciting potential maritime customers in Louisiana as he builds the division for Wellbuilt. (Hrg. Test. Foehl; Hrg. Test. Salley). Defendant Kendall Salley (Salley) is an Alabama resident and former employee of Ranger from 8/14/14-5/5/21 (Creola Alabama Branch Manager, then General Manager). (Doc. 33; Hrg. Test. Salley). Salley was Foehl’s supervisor during the time both were employed at Ranger. (Hrg. Test. Salley). Following his departure from Ranger, Salley became Wellbuilt’s General Manager, and currently works in the Mobile, AL office. (Id.) B. The Litigation This litigation is rooted in the circumstances surrounding Foehl’s July 2023 resignation from Ranger and his subsequent (and immediate) employment with Wellbuilt, Ranger’s competitor in the maritime cleaning services business. Generally, Ranger alleges that around that time, Foehl stole company trade secrets and breached his non-compete agreement. Ranger also alleges that Foehl, Wellbuilt, and Salley misappropriated company trade secrets, improperly solicited company customers and employees, and improperly competed with the company to unlawfully advantage Wellbuilt.

II. Procedural Background

On August 3, 2023, Plaintiff Ranger Environmental Services, LLC (Ranger) initiated this action against Carl Foehl (former Ranger employee) (Foehl), Kendall Salley (former Ranger employee) (Salley), and Wellbuilt Environmental Solutions LLC (Wellbuilt), pursuant to Federal Rule of Civil Procedure Rule 65, 18 U.S.C. § 1836 et seq. (the Federal Defend Trade Secrets Act (DTSA)),1 and Ala. Code §§ 8-27-4(a)(1)(a) and 8-1-195 (the Ala Trade Secrets Act (ATSA)). Ranger filed a Verified Complaint, Motion for Temporary Restraining Order (TRO), Motion for Preliminary Injunction (PI), and Motion for Civil Seizure. (Docs. 1, 3). In the Verified Complaint, Ranger alleges nine (9) counts against the Defendants: misappropriation of trade secrets DTSA (18 U.S.C. §§ 1831) and ATSA (Ala. Code §§ 8-27-1) by all Defendants (Counts One and Two); conspiracy to violate the DTSA (Count Three) by all Defendants; breach of contract by Foehl relative to his employment

1 As explained in 1 COMPUTER SOFTWARE AGREEMENTS: FORMS AND COMMENTARY § 4:4 (Jul. 2023 Update) (emphasis added):

On May 11, 2016, the … DTSA was signed into law … to provide a federal cause of action to private companies for trade secret misappropriation…. A uniform, nationwide set of standards for protecting trade secrets and establishes a private right of action to sue in federal court….

The DTSA does not preempt, and instead …. Co-exist[s] with…. State-by-state implementations of the Uniform Trade Secrets Act … and other state laws currently governing trade secret disputes. *** …. Under the DTSA, a court may grant an injunction to prevent any actual or threatened misappropriation, provided the order does not prevent a person from entering into an employment relationship or otherwise conflict with applicable state laws prohibiting restraints on trade. Instead, the DTSA states that any injunction that would prevent or restrict a person's employment cannot conflict with state law regarding restraints on the lawful profession, trade or business, and must be "based on evidence of threatened misappropriation and not merely on the information the person knows.” agreement with Ranger (Count Four); fraud, misrepresentation, deceit, and suppression against Foehl (Count Five); breach of fiduciary duties against Foehl (Count Six); tortious interference against Foehl (Count Seven); tortious interference against Salley and Wellbuilt (Count Eight); and breach of contract by Foehl (a $5,200 loan by Ranger) (Count Nine). On August 4, 2023, the motions were set for an evidentiary hearing on August 14, 2023. (Doc. 7). On August 9, 2023, the parties jointly moved to convert the hearing into a status conference and to hold certain settings in abeyance suggesting they had reached an agreement as to some claims, and the request was granted. (Docs. 9, 10). On August 11, 2023, the parties jointly filed a motion for entry of

a consent preliminary injunction order as to certain claims and a briefing schedule for the remaining disputed issues. (Doc. 11). On August 14, 2023, a Status Conference was held, at which time the parties represented that they were in agreement as to certain issues/claims but wished for the case to continue as to the remaining issues.

Free access — add to your briefcase to read the full text and ask questions with AI

Ranger Environmental Services LLC v. Foehl, (S.D. Ala. 2023).

Ranger Environmental Services LLC v. Foehl (Ranger Environmental Services LLC v. Foehl) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

American Red Cross v. Palm Beach Blood Bank, Inc.
143 F.3d 1407 (Eleventh Circuit, 1998)
McDonald's Corp. v. Robertson
147 F.3d 1301 (Eleventh Circuit, 1998)
State of Alabama v. U.S. Army Corps of Engineers
424 F.3d 1117 (Eleventh Circuit, 2005)
Pintando v. Miami-Dade Housing Agency
501 F.3d 1241 (Eleventh Circuit, 2007)
Elrod v. Burns
427 U.S. 347 (Supreme Court, 1976)
Adarand Constructors, Inc. v. Pena
515 U.S. 200 (Supreme Court, 1995)
Gratz v. Bollinger
539 U.S. 244 (Supreme Court, 2003)
Lear Siegler, Inc. v. Ark-Ell Springs, Inc.
569 F.2d 286 (Fifth Circuit, 1978)
Clapper v. Amnesty International USA
133 S. Ct. 1138 (Supreme Court, 2013)
Faiveley Transport Malmo AB v. Wabtec Corp.
559 F.3d 110 (Second Circuit, 2009)
Ex Parte W.L. Halsey Grocery Co.
897 So. 2d 1028 (Supreme Court of Alabama, 2004)
Concrete Co. v. Lambert
510 F. Supp. 2d 570 (M.D. Alabama, 2007)
Schiavo Ex Rel. Schindler v. Schiavo
357 F. Supp. 2d 1378 (M.D. Florida, 2005)
Del Monte Fresh Produce Co. v. Dole Food Co., Inc.
148 F. Supp. 2d 1326 (S.D. Florida, 2001)
Del Monte Fresh Produce Co. v. Dole Food Co., Inc.
148 F. Supp. 2d 1322 (S.D. Florida, 2001)
James Edward Hoefling, Jr. v. City of Miami
811 F.3d 1271 (Eleventh Circuit, 2016)