1 2 3 4 5 UNITED STATES DISTRICT COURT 6 WESTERN DISTRICT OF WASHINGTON AT SEATTLE 7 SERVCO INSURANCE SERVICES 8 WASHINGTON, LLC, NO. C20-0313RSL 9 Plaintiff, TEMPORARY RESTRAINING 10 v. ORDER AND ORDER FOR EXPEDITED DISCOVERY 11 JAY SOROKA, CHRISTOPHER BRUMFIELD, and MELANIE KELLY, 12 Defendants. 13 14
15 This matter comes before the Court on “Plaintiff’s Emergency Motion for Temporary 16 Restraining Order” (Dkt. # 10) and “Plaintiff’s Motion for Limited, Expedited Discovery and 17 18 Preservation of Evidence” (Dkt. # 15). Having reviewed the submissions of the parties, the Court 19 finds as follows: 20 (1) This Court has jurisdiction over the parties and the subject matter of this dispute. The 21 Order to Show Cause issued on February 28, 2020, is hereby VACATED. 22 (2) Servco Insurance Services Washington, LLC (“Servco”) has a strong likelihood of 23 24 success on the merits of its breach of contract claim. Although a recent change in Washington 25 law makes the two-year term of section 5(b) of defendants’ employment agreements 26 presumptively unreasonable, the presumption is subject to rebuttal and reformation of the 27 TEMPORARY RESTRAINING ORDER 1 temporal provision is likely appropriate. See RCW 49.62.020(2); Emerick v. Cardiac Study Ctr., 2 Inc., P.S., 189 Wn. App. 711, 724 (2015) (“If the trial court determines that certain terms of the 3 covenant are unreasonable - such as the geographic and temporal scope of the restraint - the 4 entire covenant does not fail . . . The court should still seek to enforce the covenant to the extent 5 reasonably possible to accomplish the contract’s purpose.”). 6 7 (3) Servco will likely suffer irreparable harm in the absence of preliminary injunctive 8 relief if defendants continue soliciting, accepting, and servicing Servco clients and/or utilizing 9 confidential information regarding renewal dates, policy provisions, client lists, etc., to compete 10 with Servco. 11 (4) The balance of equities tips in favor of granting preliminary injunctive relief. On one 12 side is the interest of defendants in the unfettered exploitation of contacts and information in 13 14 their possession so that they can rebuild a book of business in the service of their new employer. 15 On the other is Servco’s opposite and opposing interest in protecting its contacts, information, 16 and clients for its own business purposes plus its interest in enforcing the parties’ employment 17 agreements. 18 (5) An injunction is also in the public interest. While Washington has a policy against 19 20 contracts that preclude an employee from engaging in his or her chosen trade, business, or 21 profession, less restrictive covenants that limit an employee’s ability to solicit clients and/or to 22 utilize confidential information for the benefit of a competitor are permitted as a means of 23 safeguarding an employer’s reasonable and protectable interests. The public also has an interest 24 in the enforcement of contractual obligations. 25 (6) Defendants have not shown that judicial estoppel applies. 26 27 TEMPORARY RESTRAINING ORDER 1 (7) The parties agree that, if temporary injunctive relief is granted, expedited discovery is 2 necessary before determining whether a preliminary injunction should issue. 3 FOR ALL OF THE FOREGOING REASONS, IT IS HEREBY ORDERED AND 4 DECREED THAT: 5 A. This Temporary Restraining Order is effective immediately. Servco shall post security 6 7 in the amount of $100,000.00 no later than 5:00 pm on March 13, 2020. Failure to do so will 8 result in the automatic termination of this Temporary Restraining Order. 9 B. Defendants are hereby temporarily enjoined from soliciting, accepting, diverting, or 10 servicing any current or former Servco clients or client accounts that were previously serviced 11 by one or more defendants while employed by Servco. 12 C. Defendants, and all parties in active concert or participation with defendants who 13 14 receive actual notice of this Order, are hereby temporarily enjoined from using or disclosing 15 Servco’s confidential information, including but not limited to client lists, rating information, 16 renewal dates, and policy terms, to solicit or divert insurance business on behalf or for the 17 benefit of defendants’ new employer. 18 D. Servco and defendants, and all parties in active concert or participation with them who 19 20 receive actual notice of this Order, shall preserve all evidence related to the facts and claims set 21 forth in the complaint (Dkt. # 1-2). 22 E. In order to allow the parties an opportunity to conduct discovery (and as proposed by 23 defendants in response to plaintiff’s motion for expedited discovery), this Temporary 24 Restraining Order expires on April 22, 2020, unless plaintiff files a motion for preliminary 25 injunction on or before that date or the Court has, for good cause, extended the deadline, in 26 27 TEMPORARY RESTRAINING ORDER 1 which case the Temporary Restraining Order will expire when the Court has adjudicated that 2 motion. 3 F. Each side in this litigation (as opposed to each party) may, on or before March 18, 4 2020, serve up to five interrogatories and seven requests for production. A responding party shall 5 serve written responses and/or objections to the discovery within seven days of service and shall 6 7 produce responsive documents not subject to objection within fourteen days of service. If an 8 objection to a written discovery request is asserted, the parties shall meet and confer within two 9 calendar days of service of the objection. Written discovery requests shall be narrowly focused 10 on issues relevant to the preliminary injunction analysis, similar to the requests proposed by 11 Servco with the motion for leave to conduct expedited discovery, and in keeping with the limited 12 time frame allowed for responses. 13 14 G. Each side in this litigation (as opposed to each party) may, on or before March 18, 15 2020, serve one non-party subpoena duces tecum on Alliant requesting up to five categories of 16 documents. Alliant shall have fourteen days in which to serve written responses/objections and 17 to produce responsive documents. The categories of documents requested shall be narrowly 18 focused on issues relevant to the preliminary injunction analysis and in keeping with the limited 19 20 time frame allowed for responses. 21 H. Each side may depose the opposing party/parties and may notice two additional non- 22 party depositions. Depositions are limited to three hours or less, without prejudice to completing 23 the depositions in accordance with the Federal Rules of Civil Procedure after the preliminary 24 injunction motion is resolved. At least seven days’ notice shall be provided to the deponent, and 25 depositions shall be scheduled to occur between April 3rd and April 17th. The parties shall meet 26 27 TEMPORARY RESTRAINING ORDER 1 and confer on or before March 27, 2020, to agree on a comprehensive deposition schedule. If a 2 Rule 30(b)(6) deposition is noted, any objections are to be served within two calendar days of 3 receipt of the deposition notice and the parties are to meet and confer within two days of receipt 4 of the objections. 5 I. Servco shall file and serve any motion for preliminary injunction on or before April 22, 6 7 2020, and note it on the Court’s calendar for consideration on Friday, May 8, 2020. Defendants’ 8 response, if any, is due on the Monday before the note date. Servco’s reply, if any, is due on the 9 note date. If a motion for preliminary injunction is not timely filed and the Court has not, for 10 good cause, extended the deadline, this Temporary Restraining Order expires automatically. 11 J.
Free access — add to your briefcase to read the full text and ask questions with AI
1 2 3 4 5 UNITED STATES DISTRICT COURT 6 WESTERN DISTRICT OF WASHINGTON AT SEATTLE 7 SERVCO INSURANCE SERVICES 8 WASHINGTON, LLC, NO. C20-0313RSL 9 Plaintiff, TEMPORARY RESTRAINING 10 v. ORDER AND ORDER FOR EXPEDITED DISCOVERY 11 JAY SOROKA, CHRISTOPHER BRUMFIELD, and MELANIE KELLY, 12 Defendants. 13 14
15 This matter comes before the Court on “Plaintiff’s Emergency Motion for Temporary 16 Restraining Order” (Dkt. # 10) and “Plaintiff’s Motion for Limited, Expedited Discovery and 17 18 Preservation of Evidence” (Dkt. # 15). Having reviewed the submissions of the parties, the Court 19 finds as follows: 20 (1) This Court has jurisdiction over the parties and the subject matter of this dispute. The 21 Order to Show Cause issued on February 28, 2020, is hereby VACATED. 22 (2) Servco Insurance Services Washington, LLC (“Servco”) has a strong likelihood of 23 24 success on the merits of its breach of contract claim. Although a recent change in Washington 25 law makes the two-year term of section 5(b) of defendants’ employment agreements 26 presumptively unreasonable, the presumption is subject to rebuttal and reformation of the 27 TEMPORARY RESTRAINING ORDER 1 temporal provision is likely appropriate. See RCW 49.62.020(2); Emerick v. Cardiac Study Ctr., 2 Inc., P.S., 189 Wn. App. 711, 724 (2015) (“If the trial court determines that certain terms of the 3 covenant are unreasonable - such as the geographic and temporal scope of the restraint - the 4 entire covenant does not fail . . . The court should still seek to enforce the covenant to the extent 5 reasonably possible to accomplish the contract’s purpose.”). 6 7 (3) Servco will likely suffer irreparable harm in the absence of preliminary injunctive 8 relief if defendants continue soliciting, accepting, and servicing Servco clients and/or utilizing 9 confidential information regarding renewal dates, policy provisions, client lists, etc., to compete 10 with Servco. 11 (4) The balance of equities tips in favor of granting preliminary injunctive relief. On one 12 side is the interest of defendants in the unfettered exploitation of contacts and information in 13 14 their possession so that they can rebuild a book of business in the service of their new employer. 15 On the other is Servco’s opposite and opposing interest in protecting its contacts, information, 16 and clients for its own business purposes plus its interest in enforcing the parties’ employment 17 agreements. 18 (5) An injunction is also in the public interest. While Washington has a policy against 19 20 contracts that preclude an employee from engaging in his or her chosen trade, business, or 21 profession, less restrictive covenants that limit an employee’s ability to solicit clients and/or to 22 utilize confidential information for the benefit of a competitor are permitted as a means of 23 safeguarding an employer’s reasonable and protectable interests. The public also has an interest 24 in the enforcement of contractual obligations. 25 (6) Defendants have not shown that judicial estoppel applies. 26 27 TEMPORARY RESTRAINING ORDER 1 (7) The parties agree that, if temporary injunctive relief is granted, expedited discovery is 2 necessary before determining whether a preliminary injunction should issue. 3 FOR ALL OF THE FOREGOING REASONS, IT IS HEREBY ORDERED AND 4 DECREED THAT: 5 A. This Temporary Restraining Order is effective immediately. Servco shall post security 6 7 in the amount of $100,000.00 no later than 5:00 pm on March 13, 2020. Failure to do so will 8 result in the automatic termination of this Temporary Restraining Order. 9 B. Defendants are hereby temporarily enjoined from soliciting, accepting, diverting, or 10 servicing any current or former Servco clients or client accounts that were previously serviced 11 by one or more defendants while employed by Servco. 12 C. Defendants, and all parties in active concert or participation with defendants who 13 14 receive actual notice of this Order, are hereby temporarily enjoined from using or disclosing 15 Servco’s confidential information, including but not limited to client lists, rating information, 16 renewal dates, and policy terms, to solicit or divert insurance business on behalf or for the 17 benefit of defendants’ new employer. 18 D. Servco and defendants, and all parties in active concert or participation with them who 19 20 receive actual notice of this Order, shall preserve all evidence related to the facts and claims set 21 forth in the complaint (Dkt. # 1-2). 22 E. In order to allow the parties an opportunity to conduct discovery (and as proposed by 23 defendants in response to plaintiff’s motion for expedited discovery), this Temporary 24 Restraining Order expires on April 22, 2020, unless plaintiff files a motion for preliminary 25 injunction on or before that date or the Court has, for good cause, extended the deadline, in 26 27 TEMPORARY RESTRAINING ORDER 1 which case the Temporary Restraining Order will expire when the Court has adjudicated that 2 motion. 3 F. Each side in this litigation (as opposed to each party) may, on or before March 18, 4 2020, serve up to five interrogatories and seven requests for production. A responding party shall 5 serve written responses and/or objections to the discovery within seven days of service and shall 6 7 produce responsive documents not subject to objection within fourteen days of service. If an 8 objection to a written discovery request is asserted, the parties shall meet and confer within two 9 calendar days of service of the objection. Written discovery requests shall be narrowly focused 10 on issues relevant to the preliminary injunction analysis, similar to the requests proposed by 11 Servco with the motion for leave to conduct expedited discovery, and in keeping with the limited 12 time frame allowed for responses. 13 14 G. Each side in this litigation (as opposed to each party) may, on or before March 18, 15 2020, serve one non-party subpoena duces tecum on Alliant requesting up to five categories of 16 documents. Alliant shall have fourteen days in which to serve written responses/objections and 17 to produce responsive documents. The categories of documents requested shall be narrowly 18 focused on issues relevant to the preliminary injunction analysis and in keeping with the limited 19 20 time frame allowed for responses. 21 H. Each side may depose the opposing party/parties and may notice two additional non- 22 party depositions. Depositions are limited to three hours or less, without prejudice to completing 23 the depositions in accordance with the Federal Rules of Civil Procedure after the preliminary 24 injunction motion is resolved. At least seven days’ notice shall be provided to the deponent, and 25 depositions shall be scheduled to occur between April 3rd and April 17th. The parties shall meet 26 27 TEMPORARY RESTRAINING ORDER 1 and confer on or before March 27, 2020, to agree on a comprehensive deposition schedule. If a 2 Rule 30(b)(6) deposition is noted, any objections are to be served within two calendar days of 3 receipt of the deposition notice and the parties are to meet and confer within two days of receipt 4 of the objections. 5 I. Servco shall file and serve any motion for preliminary injunction on or before April 22, 6 7 2020, and note it on the Court’s calendar for consideration on Friday, May 8, 2020. Defendants’ 8 response, if any, is due on the Monday before the note date. Servco’s reply, if any, is due on the 9 note date. If a motion for preliminary injunction is not timely filed and the Court has not, for 10 good cause, extended the deadline, this Temporary Restraining Order expires automatically. 11 J. The deadlines and time frames in this Order can and will be altered for good cause. As 12 the region addresses the spread of the coronavirus over the next few weeks, the Court expects 13 14 the parties to adjust to changing public health recommendations and to stipulate to alterations in 15 the schedule as needed. Witnesses, lawyers, and parties who are ill or part of an at-risk group 16 shall be accommodated. The parties are encouraged to enter into stipulations regarding discovery 17 procedures (Fed. R. Civ. P. 29) that would maintain social distancing and to consider taking 18 depositions by remote means (Fed. R. Civ. P. 30(b((4)) and/or written questions (Fed. R. Civ. P. 19 20 31) rather than in person. 21 22 DATED this 11th day of March, 2020, at 10:40 a.m. 23 A 24 Robert S. Lasnik 25 United States District Judge 26 27 TEMPORARY RESTRAINING ORDER