Thomas Industrial & Mechanical Contractors, LLC v. Justice

CourtDistrict Court, E.D. Louisiana
DecidedApril 21, 2021
Docket2:20-cv-01102
StatusUnknown

This text of Thomas Industrial & Mechanical Contractors, LLC v. Justice (Thomas Industrial & Mechanical Contractors, LLC v. Justice) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thomas Industrial & Mechanical Contractors, LLC v. Justice, (E.D. La. 2021).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA THOMAS INDUSTRIAL & * CIVIL ACTION MECHANICAL CONTRACTORS, LLC * NO. 20-1102 VERSUS * SECTION “R” (2) JEFFREY JUSTICE, ET AL.

ORDER AND REASONS

The Motion to Quash Subponeas Duces Tecum (ECF No. 26) and Motion to Quash Rule 30(b)(6) Notice of Deposition (ECF No. 30) filed by Defendants Jeffrey Justice, Sandra Justice, Lamar Kerry Davis and Advanced Industrial & Mechanical, LLC are pending before me in this matter. Plaintiff Thomas Industrial & Mechanical Contractors, LLC (“Thomas Industrial”) filed timely Opposition Memoranda. ECF Nos. 39, 40. Having considered the record, the submissions and arguments of counsel, and the applicable law, IT IS ORDERED that Defendants’ motions are GRANTED IN PART AN DENIED IN PART for the reasons stated herein. I. BACKGROUND Defendants Jeffrey Justice, Sandra Justice and Lamar Kerry Davis worked for Plaintiff Thomas Industrial until their termination on March 8, 2019. ECF No. 21, ⁋ 21, at 5. Plaintiff alleges that, while in its employ, Defendants formed a competing company (Defendant Advanced Industrial & Mechanical, LLC (“Advanced Industrial”)) and engaged in fraud, misrepresentation, deception, and other unethical conduct and diverted business opportunities from Plaintiff to Advanced Industrial. Id. ⁋ 15, at 4. Plaintiff asserts claims for unfair trade practices, conversion, breach of contract and breach of fiduciary duty. Id. ⁋⁋ 13–42, at 3–11. Plaintiff contends that, among other things, Defendants falsely represented to Plaintiff’s customers that Advanced Industrial was Plaintiff’s subsidiary, altered Plaintiff’s Certificate of Liability Insurance to reflect the insurance was in favor of Advanced Industrial, contracted with Plaintiff’s customers on behalf of Advanced Industrial, charged Plaintiff for time spent working on Advanced Industrial matters (id. ⁋ 22, at 5–6), and that they stole and used Plaintiff’s equipment to perform services on behalf of Advanced Industrial (id. ⁋⁋ 29–31, at 9). Plaintiff claims to have suffered losses in excess of

$450,000 in sales as well as other financial losses. Id. ⁋ 23, at 6. Defendants deny the allegations, and the individual Defendants have filed a counterclaim for unpaid wages and penalties under La. Rev. Stat. § 23:631 (ECF No. 22, ¶ 13, at 12), alleging they are owed approximately $20,000 in unpaid expenses and $8,386.55 in unpaid commissions. Id. ⁋⁋ 10, 12, at 11. A. Subpoenas Duces Tecum In the course of discovery, Plaintiff issued Subpoenas Duces Tecum to 10 third parties1 seeking 13 categories of information: 1. Copies of all Certificates of Insurance provided by Advanced Industrial & Mechanical, LLC (AIM) for any purpose at any time. 2. Copies of all checks paid to AIM for any purpose at any time. 3. Copies of all estimates provided by AIM for any purpose at any time. 4. Copies of all AIM purchase orders for any purposes at any time. 5. Copies of all financial statements provided by AIM for any purpose at any time. 6. Copies of all quotes provided by AIM for any purpose at any time. 7. Copies of all documents showing all jobs or work performed by AIM on any jobs or work for any purpose at any time. 8. Copies of all checks paid to AIM for any purpose at any time. 9. Copies of all transaction reports involving payments to AIM for any purpose at any time. 10. Copies of any communications, including but not limited to correspondence, emails, recordings, etc. received from AIM or sent to AIM for any purpose at any time. 11. Copies of any communications, including but not limited to correspondence, emails, recordings, etc. received from Jeffery Justice or sent to Jeffery Justice for any purpose at any time. 12. Copies of any communications, including but not limited to correspondence, emails, recordings, etc. received from Sandra Justice or sent to Sandra Justice for any purpose at any time.

1 The recipients of the subpoenas duces tecum are Babcock & Wilcox, Bachman Industries, Bear Island Paper WB, LLC, Dominion Altavista, Dominion Energy Virginia, DS Smith North America Recycling, Durr Universal, Hydrocarbon Engineering, Virginia Electric & Power Company, and Clyde Bergmann Power Group Americas, Inc. ECF No. 26-2, at 2, 7, 12, 17, 22, 27, 32, 37, 42, 47. 13. Copies of any communications, including but not limited to correspondence, emails, recordings, etc. received from Lamar Kerry Davis or sent to Lamar Kerry Davis for any purpose at any time.

Defendants do not object to Items 2-4 and 6-9 for the period before their March 8, 2019 termination, but do object to any such documents after their employment with Plaintiff ended on the basis that this case does not involve an alleged non-compete agreement so post-employment activities are not relevant to any claim in this case. ECF No. 26-1, at 4–5. Defendants also contend that the requested documents are confidential and proprietary business and financial information, which is particularly harmful given that Plaintiff is their direct competitor. Id. at 5. Likewise, for Items 10-13, Defendants do not object to communications related to work quoted, offered or performed before March 8, 2019, but object to any communications after their termination and further object that the requests seeking communications “for any purpose at any time” as overbroad and not narrowly tailored to seek relevant information. Id. at 6. Defendants object to Item 5 for any period of time, including the time during which they were employed by Plaintiff. Id. at 5–6. Plaintiff contends that all of the information sought by the Subpoenas Duces Tecum, including the post-March 8, 2019 information, is relevant to damages and to establish misrepresentations made to Plaintiff’s customers to divert their business from Plaintiff to Advanced Industrial. ECF No. 39, at 3–7. B. Deposition Notices Plaintiff also issued deposition notices for the individual defendants and a Rule 30(b)(6) notice for Advanced Industrial specifying 14 areas of inquiry: 1. The nature of AIM’s business; 2. Funding received by AIM; 3. Organizational structure of AIM; 4. Recruiting and hiring practices by AIM; 5. The nature, status, and underlying facts of any litigation to which the company has been a party. 6. Jobs or work AIM has undertaken or completed at any time since inception until the present date including any jobs or work before, during, and after Jeffery Justice was employed by Thomas Industrial & Mechanical Constructors, LLC (Thomas Industrial). 7. Any accountants utilized by Advanced Industrial Mechanical, LLC for any purpose whatsoever from 2018 to the present date. 8. Customers of AIM from inception of the business to the present date. 9. Amounts paid for each job AIM completed or performed any work on from inception of the business to the present date. 10. Third parties presented with any Certificates of Liability Insurance at any time for any job or work performed or attempted to be per[]formed by AIM. 11. All income paid to any AIM employee from inception of the business until the present date. 12. All income paid to any third party for work completed on behalf of or for AIM from inception of the business until the present date. 13. Financial statements created by or for AIM from inception of the business until the present date. 14. All quotes provided to any third party by AIM or any employee on behalf of AIM for any employee on behalf of AIM for any work from inception of the business until the present date.

ECF No. 30-2, at 2.

Defendants seek to quash or limit Plaintiff’s notices of deposition for defendants Jeffrey Justice, Sandra Justice and Kerry Davis as well as a Rule 30(b)(6) Deposition Notice setting forth 14 areas of inquiry, which Defendants contend are overbroad. ECF No. 30-1, at 2.

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Thomas Industrial & Mechanical Contractors, LLC v. Justice, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomas-industrial-mechanical-contractors-llc-v-justice-laed-2021.