Tandym Group, LLC v. Mission Staffing Inc.

2024 NY Slip Op 32960(U)
CourtNew York Supreme Court, New York County
DecidedAugust 21, 2024
DocketIndex No. 655839/2023
StatusUnpublished

This text of 2024 NY Slip Op 32960(U) (Tandym Group, LLC v. Mission Staffing Inc.) is published on Counsel Stack Legal Research, covering New York Supreme Court, New York County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tandym Group, LLC v. Mission Staffing Inc., 2024 NY Slip Op 32960(U) (N.Y. Super. Ct. 2024).

Opinion

Tandym Group, LLC v Mission Staffing Inc. 2024 NY Slip Op 32960(U) August 21, 2024 Supreme Court, New York County Docket Number: Index No. 655839/2023 Judge: Margaret A. Chan Cases posted with a "30000" identifier, i.e., 2013 NY Slip Op 30001(U), are republished from various New York State and local government sources, including the New York State Unified Court System's eCourts Service. This opinion is uncorrected and not selected for official publication. INDEX NO. 655839/2023 NYSCEF DOC. NO. 26 RECEIVED NYSCEF: 08/21/2024

SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK: COMMERCIAL DIVISION PART 49M ---------------------------------------------------------·-------------- -----X

TANDYM GROUP, LLC, INDEX NO. 655839/2023

Plaintiff, 03/25/2024 MOTION DATE

-v- MOTION SEQ. NO. 001 MISSION STAFFING INC. and PAUL HERMAN, DECISION+ ORDER ON Defendants. MOTION -----------------------------------------------------------------------------------X

HON. MARGARET A. CHAN:

The following e-filed documents, listed by NYSCEF document number (MS00l) 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 23, 24, 25 were read on this motion to/for DISMISS

Plaintiff Tandym Group, LLC (Tandym) brings this action against defendants Mission Staffing Inc. (Mission) and Paul Herman (Herman, and together with Mission, defendants) asserting claims in connection with defendants' purported solicitation of employees and clients from Tandym and their purported misappropriation of Tandym's confidential information. Now before the court is defendants' motion, pursuant to CPLR 3211(a)(l) and (a)(7), for an order dismissing the Complaint (NYSCEF # 6). Tandym opposes the motion. For the following reasons, defendants' motion is granted.

Tandym is Delaware limited liability company that provides full-service recruitment, temporary staffing, and workforce solutions ((NYSCEF # 2, Complaint or compl ,,i 20, 43). Herman is a former employee for Tandym who held the position of Vice President, Professional Services, between 2011 to 2023 (id 2, 21, 24). ,ii Herman was responsible for hiring employees, generating new business, and maintaining and growing business with existing clients (see id 11 25·28).

According to the Complaint, Tandym required its employees to sign certain non·solicitation, non-competition, and confidentiality agreements so as to protect the confidential information, trade secrets, and client relationships and goodwill for

1 The following facts are drawn from the Complaint and the exhibits accompanying the parties' submissions in connection with defendants' motion. These facts, to the extent not refuted by documentary evidence, are assumed true solely for purposes of resolving defendants' motion. 655839/2023 TANDYM GROUP, LLC vs. MISSION STAFFING INC. ET AL Page 1 of g Motion No. 001

[* 1] 1 of 9 INDEX NO. 655839/2023 NYSCEF DOC. NO. 26 RECEIVED NYSCEF: 08/21/2024

which it had devoted substantial resources to cultivate and preserve (see compl ,r,r 41·50). Tandym maintains that Herman signed these agreements while employed with the company (see id ,r,r 7, 33, 41).

Although its Complaint quotes various terms of this purported restrictive covenant agreement with Herman (seecompl ,r,r 34·39), Tandym did not submit with the Complaint a copy of any such agreement(s). 2 By contrast, in connection with their motion, defendants did submit a Confidentiality and Non ·Solicitation Agreement, dated December 15, 2011 (the Agreement), that contains certain of the alleged non-solicitation and confidentiality provisions alleged in the Complaint (compare NSYCEF # 12 -Agreement§§ 1.1, 1.2, 2.2 with compl ,r,r 34, 36·38), although this Agreement is between Herman and an entity called The Execu I Search Group, Inc. (Execu I Search) (see Agreement at 1).

As relevant here, Section 2 of the Agreement sets forth Herman's non· solicitation obligations to Execu I Search. Section 2.2 provided that Herman would not (a) "[d]isclose, use, exploit, rely upon or take any advantage of in any way whatsoever, directly or indirectly any of Execu I Search's open job orders," (b) "[d]islcose, contact, use, exploit, rely upon or take advantage of in any way whatsoever, directly or indirectly, any of Execu I Search's candidates" (c) "[i]nfluence or attempt to influence ... a job candidate, supplier or customer ... to terminate or modify any written or oral Agreement or course of dealing with the Firm," and (d) "[i]influence or attempt to influence ... a supplier or customer ... for the purpose of offering or selling any services which are identical, substantially similar or comparable to the services offered by the Firm" (Agreement§ 2.2[a]·[d]; compl ,r,r 8, 34). Section 2.3-which is not referenced in the Complaint-in turn provided that Herman would not, following his employment,

directly or indirectly ... influence or attempt to influence any person to (i) terminate or modify his employment with the Firm; (ii) solicit for employment, directly or indirectly, any person employed by the Firm as an employee; or (iii) employ or otherwise retain the services of, directly or indirectly, any person employed by the Firm as an employee during the time that [Herman] was employed by the Firm

(Agreement§ 2.3). 3 Tandym claims that these non-solicitation restrictions were imposed on Herman for a 12·month period (see compl ,r,r 8, 34·35). But the

2 Tandym states that the "non-solicitation, non-complete [sicl, and confidentiality agreements" were attached to the Complaint as Exhibit A and Exhibit B (see e.g. comp! ,r,r 33, 37). But a review of the docket and pleadings makes clear that 110 exhibits were actually submitted with the Complaint. 3 Tandym alleges that Herman agreed that (1) "for a period of twelve months following his separation from employment," he would not "directly or indirectly ... perform job activities of the type [Herman], or [Herman's] subordinates, performed or provided for Tandym within the two years preceding [Herman's] termination that are competitive with the line of services provided by [Herman] for the Tandym," and (2) this restriction applied "within twenty-five miles of the locations 655839/2023 TANDYM GROUP, LLC vs. MISSION STAFFING INC. ET AL Page 2 of g Motion No. 001

[* 2] 2 of 9 INDEX NO. 655839/2023 NYSCEF DOC. NO. 26 RECEIVED NYSCEF: 08/21/2024

Agreement actually provides that Section 2.2's restrictions would be in place "for a period of eighteen (18) months following cessation of such employment," and that Section 2.3's restrictions would last for a period of "two (2) years following cessation of [Herman's] employment" (Agreement§§ 2.2, 2.3). The Agreement contains no geographical limitation to these restrictions (see generally Agreement §§ 2.1 ·2.5).

Section 1 of the Agreement addressed Herman's confidentiality restrictions. In particular, pursuant to Section 1.2, Herman agreed to "hold in strictest confidence, and not to disclose or allow to be disclosed ... and not to use ... Confidential Information, including Confidential Information developed by [Herman], without the express permission of an officer of the Firm" (Agreement § 1.2; see alsocompl 11 36·37). "Confidential Information," in turn, was defined as "any information that is not generally known to the public," with the Agreement then enumerating a list of examples (Agreement§ 1.1; comp! ,r 38).

Tandym alleges that, throughout his employment, Herman gained knowledge about high-performing employees in his division at Tandym (comp! ,r 26).

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Bluebook (online)
2024 NY Slip Op 32960(U), Counsel Stack Legal Research, https://law.counselstack.com/opinion/tandym-group-llc-v-mission-staffing-inc-nysupctnewyork-2024.