Sodexo Operations, LLC. v. Abbe

382 F. Supp. 3d 162
CourtDistrict Court, District of Columbia
DecidedMay 31, 2019
DocketCIVIL ACTION NO. 19-11015-RWZ
StatusPublished
Cited by6 cases

This text of 382 F. Supp. 3d 162 (Sodexo Operations, LLC. v. Abbe) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sodexo Operations, LLC. v. Abbe, 382 F. Supp. 3d 162 (D.D.C. 2019).

Opinion

RYA W. ZOBEL, SENIOR UNITED STATES DISTRICT JUDGE

Plaintiff Sodexo Operations, LLC ("Sodexo"), sued Dudley Abbe (hereinafter "Mr. Abbe" or "defendant"), its former Senior Vice President of Hospitality and Support Services, asserting he breached his non-competition agreement with Sodexo. Wellforce, Inc., Mr. Abbe's current employer, intervened as a defendant.

Plaintiff seeks a temporary restraining order and preliminary injunction prohibiting Mr. Abbe from working for Wellforce in any capacity until January 30, 2020, and from disseminating Sodexo's confidential and proprietary information to Wellforce, its subsidiary Lowell General Hospital and Sodexo's competitor Aramark.

I. Factual Background

Sodexo is a Maryland-based company that provides a range of food and facilities management services to government offices, hospitals, schools, and other institutions. Aramark competes directly with Sodexo.

Over the course of his 31-year career at Sodexo, defendant held several different positions. Of particular relevance to this case, he was in 2005 promoted to Vice President of Patient Experience and signed a Noncompetitive Agreement (the "non-compete"). This non-compete prohibits him, for nine months following his termination, from working for any company that was a customer of Sodexo during the six months preceding his departure, unless his role for that customer would not involve the "Contract Food Service Business" or the "Facilities Management Business."

From 2014 until his recent resignation, Mr. Abbe was the Senior Vice President of Hospitality and Support Services. This job required him to work onsite at Sodexo's client-Lowell General Hospital ("Lowell")-where he supervised all food services, facilities management, and other operations provided under Sodexo's contract with Lowell. Lowell is operated by Circle Health, Inc., which, in turn, is owned by Wellforce-Mr. Abbe's new employer. Wellforce is also the corporate parent for three other health care entities.

On March 29, 2019, defendant resigned from Sodexo to accept the position at Wellforce. His departure from Sodexo coincided with Wellforce's selection of Aramark, over Sodexo, to be the exclusive provider of non-clinical services at all four subsidiary health care entities, including Lowell. Sodexo contends Wellforce hired Mr. Abbe to implement and oversee its transition to Aramark, and that his new job responsibilities will overlap significantly with those of his prior role on the Sodexo-Lowell contract. Both defendants, however, insist that Mr. Abbe will be an executive-level strategic project manager focused on integrating support services across all four Wellforce entities and that he will not work directly with member hospitals such as Lowell.

On April 30, 2019-Mr. Abbe's last day at Sodexo and the day before his intended *164first day at Wellforce-Sodexo brought this action and simultaneously moved for a temporary restraining order or preliminary injunction to prevent Mr. Abbe from assuming his role at Wellforce.

II. Legal Standard

A preliminary injunction is an extraordinary remedy granted only if the movant demonstrates "(1) a substantial likelihood of success on the merits; (2) a significant risk of irreparable harm if the injunction is withheld; (3) a favorable balance of hardships; and (4) a fit (or lack of friction) between the injunction and the public interest." Nieves-Marquez v. Puerto Rico, 353 F.3d 108, 120 (1st Cir. 2003). "The sine qua non of this four-part inquiry is likelihood of success on the merits." New Comm Wireless Servs., Inc. v. SprintCom, Inc., 287 F.3d 1, 9 (1st Cir. 2002).

As an initial matter, the parties disagree which law governs, that of Massachusetts or that of Maryland, where Sodexo is based. Because the court's jurisdiction is based on diversity of citizenship, the choice of law rules of Massachusetts apply. E.g., Levin v. Dalva Bros., Inc., 459 F.3d 68, 73 (1st Cir. 2006). Massachusetts courts take a "functional choice-of-law approach that responds to the interests of the parties, the States involved, and the interstate system as a whole." Bushkin Assocs., Inc. v. Raytheon Co., 393 Mass. 622, 473 N.E.2d 662, 668 (1985). In the absence of a contractual provision, Massachusetts applies the law of the state with the most significant relationship to the transaction and the parties. Id. at 669 ; see also GES Exposition Servs., Inc. v. Floreano, No. CIV.A. 07-10584-GAO, 2007 WL 4323012, at *1 (D. Mass. Dec. 7, 2007) (applying most significant relationship test and Massachusetts law to challenge to non-compete agreement). Here, the non-compete does not address the choice of law. Though Sodexo is a Maryland-based corporation, defendant lived and worked in Massachusetts for his entire 31-year tenure with the company. In addition, Wellforce and his new position are both located in Massachusetts. Massachusetts clearly bears the most significant relationship to the alleged breach (Mr. Abbe's resignation from Sodexo and acceptance of a position with Wellforce). Accordingly, Massachusetts law governs.

Under Massachusetts law,1 a restrictive covenant in an employment agreement is enforceable "only if it is necessary to protect a legitimate business interest, reasonably limited in time and space, and consonant with the public interest." Boulanger v. Dunkin' Donuts Inc., 442 Mass. 635, 815 N.E.2d 572, 576-77 (2004) (collecting cases). Legitimate business interests include the protection of confidential information, goodwill, and trade secrets. Id. at 578.

III. Analysis

The non-compete agreement provides in relevant part:

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Bluebook (online)
382 F. Supp. 3d 162, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sodexo-operations-llc-v-abbe-dcd-2019.