Symrise Inc v. Ahmed Ali

Court of Appeals for the Third Circuit·Decided March 2, 2026·No. 24-2657·Unpublished

Opinion

NOT PRECEDENTIAL

UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT

No. 24-2657

SYMRISE, INC.

v.

DEBORAH KENNISON; AHMED ALI, also known as Ahmed Nour; DOEHLER NORTH AMERICA, INC.; PAUL GRAHAM

AHMED ALI; PAUL GRAHAM,

Appellants

On Appeal from the United States District Court for the District of New Jersey (D.C. No. 2:22-cv-07299)

District Judge: Honorable Esther Salas

Submitted Pursuant to Third Circuit L.A.R. 34.1(a)

September 8, 2025

Before: CHAGARES, Chief Judge, PORTER and ROTH, Circuit Judges

(Opinion filed: March 2, 2026)

OPINION

 This disposition is not an opinion of the full Court and, pursuant to I.O.P. 5.7, does not constitute binding precedent.

CHAGARES, Chief Judge.

Symrise, Inc. (“Symrise”) filed a lawsuit against its former employees Paul Graham and Ahmed Nour alleging that they colluded with Symrise’s competitor, Doehler North America, Inc. (“Doehler”). Graham and Nour moved to compel arbitration of Symrise’s claims pursuant to the arbitration provisions in their respective employment agreements. The District Court denied that motion because it determined that there was no valid arbitration agreement between Graham and Symrise and that discovery was necessary to determine whether Nour and Symrise entered into an arbitration agreement. After the District Court issued its opinion, however, we clarified the standard for evaluating the necessity of pre-arbitration discovery in Young v. Experian Information Solutions, Inc., 119 F.4th 314 (3d Cir. 2024). We will vacate and remand because we conclude that Graham and Symrise entered into a valid arbitration agreement and to allow the District Court to apply the standard that we articulated in Young in evaluating whether discovery is necessary to determine whether Symrise’s claims against Nour are arbitrable.

I.1

Symrise alleges that its former executives, Graham and Nour, violated the terms of their employment agreements when Graham helped Doehler poach Symrise’s employees and Nour stole large troves of proprietary information. Symrise brings claims for violations of the Defend Trade Secrets Act, 18 U.S.C. § 1836 et seq., and the New Jersey

1 We write primarily for the parties and recite only the facts essential to our decision.

Trade Secrets Act, 56 N.J. Stat. Ann. § 56:15–1 et seq., as well as various common law claims.

Symrise alleged that all of its “employees in the Food & Beverage NA division sign an employment agreement,” and that Nour signed an agreement with Symrise on December 10, 2013.2 Joint Appendix (“JA”) 109; see also JA 125, 264 n.2. Symrise also appended to the operative complaint signed copies of Graham’s employment agreement (“Graham Employment Agreement”) and separation agreement (“Graham Separation Agreement”). The Graham Employment Agreement includes an arbitration clause that provides, as relevant:

The Employer and Employee mutually consent to the final resolution by binding arbitration of any and all employment related claims between them . . . . [S]pecifically excluded from this Agreement are claims for declaratory relief or injunctive relief arising from alleged unfair competition, theft of trade secrets or business property, or the enforceability or breach of restrictive covenants . . . . The parties hereto acknowledge that, by entering into this Agreement, they are waiving their rights to a judicial forum for the resolution of any covered Claims.

JA 135.

Upon Graham’s departure, Graham and Symrise entered into the Graham Separation Agreement, pursuant to which Symrise agreed to provide Graham various separation benefits. That contract also provides that “[Symrise] and Graham intend the terms and conditions of this Agreement to govern all issues related to Graham’s

2 Although the operative complaint alleges that the agreement was signed on December 13, 2014, the parties agree that this was a typographical error and the agreement was in fact signed on December 10, 2013.

employment and the termination of his employment with [Symrise].” JA 138. It further provides that Graham “releases, waives, and discharges [Symrise] . . . from each and every waivable claim, action or right of any sort,” including “any claims arising from or relating in any way to his employment relationship with [Symrise], the terms and conditions of that employment relationship, or the termination of that employment relationship.” JA 138.

The Graham Separation Agreement “sets forth the entire agreement and understanding between the parties hereto” and “supersedes all prior agreements and understandings concerning the subject matter of this Agreement except for any agreements referenced in Paragraph 4 herein.” JA 141–42. Paragraph 4, in turn, provides that the Graham Separation Agreement did not “diminish Graham’s post- employment obligations . . . as outlined in the Symrise Employment Agreement signed by Graham on 12/24/2013.” JA 140. Finally, the Graham Separation Agreement contains a choice of law clause selecting New Jersey law.

Graham and Nour moved to compel arbitration under their respective employment agreements with Symrise. In support of his motion to compel arbitration, Nour submitted a declaration that attached (1) a signed copy of an employment agreement with Symrise AG (“Nour 2013 Agreement”), Symrise’s parent company, that was executed in 2013, and (2) an unsigned copy of an employment agreement with Symrise that he allegedly executed in 2016 (“Nour 2016 Agreement”). Nour claimed that he executed the Nour 2016 Agreement as a condition of his employment with Symrise and argued that agreement was operative when Nour resigned from Symrise. Only the 2016 agreement

contained an arbitration provision, and it was identical to the arbitration agreement between Graham and Symrise. Symrise opposed the motion to compel arbitration.

The District Court denied Graham’s motion to compel arbitration. It held that the Graham Employment Agreement was superseded by the Graham Separation Agreement, which contained no arbitration clause but did contain a choice of law clause that was inconsistent with an intent to arbitrate. It further held that Graham waived any right to enforce the arbitration agreement contained in his employment agreement by entering into the Graham Separation Agreement.

The District Court also denied without prejudice Nour’s motion to compel arbitration and ordered discovery on whether Symrise’s claims against Nour were arbitrable. It reasoned that discovery was required because the alleged arbitration agreement was not incorporated into the complaint and because Symrise had raised sufficient facts to place the validity of the arbitration agreement in issue. Graham and Nour timely appealed.

II.3

The Federal Arbitration Act (“FAA”), 9 U.S.C. § 1 et seq., requires us to compel arbitration if the parties entered into a valid and enforceable arbitration agreement that covers the instant dispute. See Young, 119 F.4th at 318. In evaluating whether the parties agreed to arbitrate a dispute, we apply traditional principles of state contract law.

3 The District Court had jurisdiction under 28 U.S.C. § 1331. Our Court has appellate jurisdiction under 9 U.S.C. § 16(a)(1)(B). See Guidotti v. Legal Helpers Debt Resol., L.L.C., 716 F.3d 764, 771 n.3 (3d Cir. 2013) (noting that appellate jurisdiction exists over motions to compel arbitration denied without prejudice).

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