RapidDeploy, Inc. v. RapidSOS, Inc.

CourtDistrict Court, W.D. Texas
DecidedAugust 1, 2022
Docket1:22-cv-00612
StatusUnknown

This text of RapidDeploy, Inc. v. RapidSOS, Inc. (RapidDeploy, Inc. v. RapidSOS, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
RapidDeploy, Inc. v. RapidSOS, Inc., (W.D. Tex. 2022).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF TEXAS AUSTIN DIVISION

RAPIDDEPLOY, INC., § Plaintiff § § v. § § Case No. 1:22-cv-00612-LY RAPIDSOS, INC. and § SAMANTHA MURRELL, § Defendants

REPORT AND RECOMMENDATION OF THE UNITED STATES MAGISTRATE JUDGE

TO: THE HONORABLE LEE YEAKEL UNITED STATES DISTRICT JUDGE

Before the Court are Plaintiff RapidDeploy, Inc.’s Emergency Motion for Remand and for Award of Attorneys’ Fees and Costs, filed June 24, 2022 (Dkt. 7); Defendant RapidSOS, Inc.’s Motion to Dismiss Under Rule 12(b)(2) of the Federal Rules of Civil Procedure, filed June 24, 2022 (Dkt. 9); Plaintiff RapidDeploy, Inc.’s Motion for Jurisdictional Discovery, filed July 11, 2022 (Dkt. 30); Defendant RapidSOS, Inc.’s Request for Judicial Notice, filed July 15, 2022 (Dkt. 35); and the associated response and reply briefs. The District Court referred the motions to the undersigned Magistrate Judge for report and recommendation, pursuant to 28 U.S.C. § 636(b)(1)(B), Federal Rule of Civil Procedure 72, and Rule 1(d) of Appendix C of the Local Rules of the United States District Court for the Western District of Texas. Dkt. 24, 36. I. Background Plaintiff RapidDeploy, Inc. is a Delaware corporation with its principal place of business in Austin, Texas. Dkt. 4 at 2. RapidDeploy asserts that Defendant RapidSOS, Inc., a Delaware corporation with its principal place of business in New York, is a “direct competitor.” Dkt 4-6 (Plaintiff’s Second Amended Petition) ¶¶ 8, 20. Specifically, RapidDeploy alleges that both companies provide “technology and data to augment and improve responses to 9-1-1 emergency calls” to “the same categories of customers.” Id. ¶ 20. RapidDeploy asserts that it had a prior business relationship with RapidSOS that ended in 2019. Id. ¶ 21. In March 2022, RapidSOS’s Chief Operating Officer José Mejía allegedly approached

RapidDeploy’s leadership about RapidSOS acquiring RapidDeploy. Id. ¶ 22. Following initial discussions, however, “it became clear no agreement could be reached.” Id. ¶ 23. One week later, the following conversation allegedly took place between Mejía and RapidDeploy’s Chief Operations Officer James Mitchell: Mitchell reiterated RapidDeploy’s belief that RapidSOS’s terms proposed were unacceptable and thus he did not see a path forward with respect to an acquisition by RapidSOS of RapidDeploy. Mejía stated that this was “unfortunate” and that RapidSOS would now have to “shift strategy.” Mejía then threated Mitchell that he would make sure RapidDeploy would never be successful, that he knew an executive at one of RapidDeploy’s strategic partners and largest investors, and that Mejía was “a very powerful person” who could make life very difficult for RapidDeploy. And very specifically, Mejía stated that he intended to hurt RapidDeploy by hiring away RapidDeploy’s best people.

Id. ¶¶ 25-26. RapidDeploy asserts that RapidSOS attempted to “poach” one of its employees within the next week, without success. Id. ¶¶ 27-28. In May 2022, Defendant Samantha Murrell informed RapidDeploy that she would resign; she later told the company that she had accepted a management position with RapidSOS, where she continues to work. Id. ¶ 58; Dkt. 9 at 5. Murrell began working for RapidDeploy in February 2019 and, “like most of RapidDeploy’s employees,” worked remotely. Id. ¶ 30. It is undisputed that Murrell is a resident of Montana and did not live in Texas during her employment with RapidDeploy. Dkt. 9 at 5; Dkt. 28 at 10. On May 9, 2022, RapidDeploy filed this suit in state court, asserting claims of breach of contract against Murrell and tortious interference with contract against RapidSOS. RapidDeploy, Inc. v. Murrell, No. D-1-GN-22-002590 (353rd Dist. Ct., Travis Cnty., Tex. May 9, 2022). RapidDeploy filed an application for a temporary restraining order, temporary injunction, and permanent injunction, asking the state court to enjoin Murrell and RapidSOS from breaching and

tortiously interfering with her employment agreement (the “Contract”) and using or disclosing proprietary information. Dkt. 4-6 ¶¶ 76, 87. RapidDeploy also asked the court to instruct Murrell and RapidSOS to return and delete access to any proprietary information or property. Id. Counsel for Murrell appeared in the state court action on her behalf, and she does not contest jurisdiction. Dkt. 4 at 2. Counsel for RapidSOS, however, filed a special appearance, asserting that the court lacked personal jurisdiction over RapidSOS. Id. The state court entered a temporary restraining order against Murrell and RapidSOS and ordered expedited discovery. Dkt. 7 at 2. On June 23, 2022, Murrell removed the case to this Court pursuant to 28 U.S.C. § 1332, asserting that RapidSOS was fraudulently joined and should be disregarded for diversity purposes. Dkt. 1 at 4.

Murrell filed an amended notice of removal on June 24, 2022. Dkt. 4. At the time of removal, RapidSOS’s special appearance and RapidDeploy’s request for additional jurisdictional discovery were pending before the state court. Dkt. 7 at 10. II. Order of Consideration When presented with challenges to both personal jurisdiction and subject matter jurisdiction, courts have discretion over the order of consideration. Ruhrgas AG v. Marathon Oil Co., 526 U.S. 574, 578 (1999) (“We hold that in cases removed from state court to federal court, as in cases originating in federal court, there is no unyielding jurisdictional hierarchy.”). The Fifth Circuit has held that courts may consider a motion challenging personal jurisdiction before a motion to remand based on “judicial economy” if “federal intrusion into state courts’ authority is minimized.” Alpine View Co. Ltd. v. Atlas Copco AB, 205 F.3d 208, 214 (5th Cir. 2000) (citation omitted). Thus, the Court has discretion to consider personal jurisdiction before subject matter jurisdiction because the personal jurisdiction inquiry does not raise “difficult questions of state law.” Id. (quoting Ruhrgas AG, 526 U.S. at 586). In the interest of judicial economy, the Court first considers the motion to dismiss for lack of

personal jurisdiction. Disposition of that motion results in the dismissal of the non-diverse defendant and thereby renders the motion to remand moot because no non-diverse parties remain. III. Motion to Dismiss Under Rule 12(b)(2) The parties dispute whether the Court has specific personal jurisdiction over RapidSOS. RapidSOS argues that RapidDeploy’s allegations, even if true, are insufficient to establish personal jurisdiction because “not a single allegation in the Petition reflect[s] actions that RapidSOS took in Texas related to Ms. Murrell’s hire.” Dkt. 9 at 12. RapidDeploy responds that RapidSOS “engaged in a series of contacts and activities directed at RapidDeploy in Texas, all of which collectively support the exercise of specific personal jurisdiction.” Dkt. 28 at 8.1 A. Legal Standard

Federal Rule of Civil Procedure 12(b)(2) requires a court to dismiss a claim if the court does not have personal jurisdiction over the defendant. A court generally may not rule on the merits of a case without first determining that it has personal jurisdiction over the parties. Sinochem Int’l Co. v.

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Bluebook (online)
RapidDeploy, Inc. v. RapidSOS, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/rapiddeploy-inc-v-rapidsos-inc-txwd-2022.