Travel Leaders Leisure Group, LLC v. Cruise & Travel Experts, Inc.

CourtDistrict Court, D. Minnesota
DecidedAugust 11, 2020
Docket0:19-cv-02871
StatusUnknown

This text of Travel Leaders Leisure Group, LLC v. Cruise & Travel Experts, Inc. (Travel Leaders Leisure Group, LLC v. Cruise & Travel Experts, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Travel Leaders Leisure Group, LLC v. Cruise & Travel Experts, Inc., (mnd 2020).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MINNESOTA

Travel Leaders Leisure Group, LLC, d/b/a Case No. 19-cv-02871 (SRN/ECW) Cruise Specialists,

Plaintiff, MEMORANDUM OPINION AND ORDER v.

Cruise & Travel Experts, Inc., Thomas Baumann, Bonnie Childs, Lynne Cox, Debra Dickerson, Michelle Boots, and Mary Ellsworth,

Defendants.

Danielle Fitzsimmons, Gregory J. Stenmoe, and Samuel N. Louwagie, Taft Stettinius & Hollister LLP, 200 IDS Center, 80 South Eighth Street, Minneapolis, MN 55402, for Plaintiff.

Andrew Peterson, Joel D. O’Malley, and Katie M. Connolly, Nilan Johnson Lewis PA, 250 Marquette Avenue South, Suite 800, Minneapolis, MN 55401, for Defendants Cruise & Travel Experts, Inc., Thomas Baumann, Bonnie Childs, Lynne Cox, Debra Dickerson, Michelle Boots, and Mary Ellsworth.

Daniel S. Gross and Richard E. Spoonemore, Sirianni Youtz Spoonemore Hamburger PLLC, 3101 Western Avenue, Suite 350, Seattle, WA 98121, for Defendant Cruise & Travel Experts, Inc.

SUSAN RICHARD NELSON, United States District Judge This matter comes before the Court on Defendants Cruise & Travel Experts, Inc.’s, Thomas Baumann’s, Bonnie Child’s, Lynne Cox’s, Debra Dickerson’s, Michelle Boots’, and Mary Ellsworth’s Motion to Dismiss for Lack of Personal Jurisdiction (Doc. No. 24). For the following reasons, the Court grants in part, and denies in part without prejudice, Defendants’ Motion.

I. BACKGROUND

A. The Parties

Plaintiff Travel Leaders Leisure Group, LLC (TLLG), which does business as Cruise Specialists (CS) and will generally be referred to as CS in this order, is a Delaware corporation with a principal place of business in Minnesota. (Compl. [Doc. No. 1] ¶ 1; see also Scrivanich Decl. [Doc. No. 38] ¶ 3.)1 CS is a luxury travel agency specializing in selling luxury cruises and tours; it has done so since 1987. (Compl. ¶ 25.) Given its tenure, CS has developed significant experience in the cruise sales industry, and its clients are typically high net-worth individuals. (Id. ¶¶ 26–28.) Defendant Cruise & Travel Experts, Inc. (CTE) is a Michigan corporation with a principal place of business in Michigan. (Id. ¶ 2.) CTE is also a luxury travel agency specializing in selling luxury cruises and tours, and directly competes with CS. (Id.) CTE was formed in September 2014. (Id. ¶ 65; see also Baumann Decl. [Doc. No. 28] ¶ 12.) Defendant Thomas Baumann is a citizen of Florida, the former president of CS, and the founder and owner of CTE. (Baumann Decl. ¶¶ 1, 5, 12; Compl. ¶¶ 4, 42–43, 65.)

1 Because this matter is before the Court on a motion to dismiss for lack of personal jurisdiction, the Court “view[s] the evidence in the light most favorable to the plaintiff and resolve[s] all factual conflicts in its favor in deciding whether the plaintiff has made” the required “prima facie showing that personal jurisdiction exists . . . .” K-V Pharm. Co. v. J. Uriach & CIA, S.A., 648 F.3d 588, 591–92 (8th Cir. 2011) (citations omitted). Defendant Bonnie Childs is a citizen of Washington, a former cruise consultant for CS, and a current cruise consultant for CTE. (Compl. ¶¶ 5, 13, 66, 68, 72; Childs Decl.

[Doc. No. 30] ¶ 1.) Defendant Lynne Cox is a citizen of Michigan, a former cruise consultant for CS (at which time she lived in Washington), and a current cruise consultant for CTE. (Compl. ¶¶ 6, 13, 66–67, 72; Cox Decl. [Doc. No. 31] ¶ 1.) Defendant Debra Dickerson is a citizen of Washington, a former cruise consultant for CS, and a current cruise consultant for CTE. (Compl. ¶¶ 7, 13, 66, 69, 72; Dickerson

Decl. [Doc. No. 32] ¶ 1.) Defendant Michelle Boots is a citizen of Oregon, a former cruise consultant for CS, and a current cruise consultant for CTE. (Compl. ¶¶ 8, 13, 66, 70, 72; Boots Decl. [Doc. No. 29] ¶ 1.) Defendant Mary Ellsworth is a citizen of Washington, a former cruise consultant

for CS, and a current cruise consultant for CTE. (Compl. ¶¶ 9, 13, 66, 71, 72; Ellsworth Decl. [Doc. No. 33] ¶ 1.) Collectively, the Court will refer to Childs, Cox, Dickerson, Boots, and Ellsworth— all cruise consultants at various times for CS and CTE—as the “Employee Defendants.” B. Factual Background

1. Cruise Specialists and Employee Defendants

Cruise Specialists was formed in 1987 in Seattle, Washington. (Compl. ¶ 25.) Each of the Employee Defendants was hired by CS as cruise consultants, and were responsible for selling cruise reservations, servicing high-value CS clients, and consulting on insurance, hotel, and other amenity options for those clients. (Id. ¶ 39.) CS hired Childs in 1997, Cox in 2000, Dickerson in 2001, Ellsworth in 2004, and Boots in 2006. (Id. ¶ 13;

see also Childs Decl. ¶ 2; Cox Decl. ¶ 2; Dickerson Decl. ¶ 2; Ellsworth Decl. ¶ 2; Boots Decl. ¶ 2.) CS generally spends approximately one year with a prospective client in order to develop a relationship with them before ever booking any travel for that client. (Compl. ¶ 30.) That approach allows CS to compile comprehensive data on the prospective client’s preferences. (Id.) That data is placed into what CS calls its “Confidential Luxury Customer

Database” (CLC Database), which serves as the “playbook” for CS. (Id. ¶¶ 30–31.) The information in the CLC Database is apparently not publicly available and is used by CS to give itself a competitive advantage within the industry. (Id. ¶¶ 32–33.) Cruise consultants working for CS are given access to the CLC Database while working for the company. (Id. ¶ 34.)

Over the course of their time at CS, the Employee Defendants either worked in CS’s Seattle office or from their homes. From 1997 through 2007, Childs worked out of CS’s Seattle-based office, then switched to working from her Washington home. (Child Decl. ¶¶ 3.1–3.3.) Cox worked out of CS’s Seattle-based office for the entire duration of her employment with CS. (Cox Decl. ¶¶ 4–5.) Dickerson worked in CS’s Seattle-based office

from 2001 to 2008, then switched to working from home in Washington. (Dickerson Decl. ¶¶ 2–3.1.) Similarly, Ellsworth worked in CS’s Seattle-based office from 2004 to 2007, then switched to remote work out of her home in Washington. (Ellsworth Decl. ¶¶ 3.1– 3.2.) Finally, Boots worked from her home in Oregon for the entire duration of her employment with CS. (Boot Decl. ¶¶ 3–3.1.) Four of the five Employee Defendants have either never been to Minnesota or have only been in the state on a flight layover. (See

Boots Decl. ¶ 14; Cox Decl. ¶ 14; Dickerson Decl. ¶ 14; Ellsworth Decl. ¶ 14.) The only Employee Defendant to have visited Minnesota in any other respect, Childs, did so when attending an employee engagement event in April 2005, unrelated to any of the claims asserted by Plaintiff in this lawsuit. (Childs Decl. ¶ 14.) While employed by CS, the Employee Defendants were issued computer hardware and software to be used by them in their role as cruise consultants, although the parties

dispute whether that equipment originated from Minnesota or Seattle. (Compare Childs Decl. ¶ 7–8; Cox Decl. ¶ 7–8; Dickerson Decl. ¶ 7–8; Ellsworth Decl. ¶ 7–8; Boots Decl. ¶ 7–8, with Scrivanich Decl. ¶ 10.) Similarly, Plaintiff contends that each Employee Defendant ultimately reported to Dave Zitur, CS’s Chief Information Officer and Chief Operating Officer, who was based out of Minnesota. (Compl. ¶ 12.) However, each

Employee Defendant claims they never communicated with anyone by that name at any time during their employment with CS, and that they instead reported to other supervisors. (Childs Decl. ¶ 4–6; Cox Decl. ¶ 4–6; Dickerson Decl. ¶ 4–6; Ellsworth Decl. ¶ 4–6; Boots Decl.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

World-Wide Volkswagen Corp. v. Woodson
444 U.S. 286 (Supreme Court, 1980)
Calder v. Jones
465 U.S. 783 (Supreme Court, 1984)
Burger King Corp. v. Rudzewicz
471 U.S. 462 (Supreme Court, 1985)
Johnson v. Arden
614 F.3d 785 (Eighth Circuit, 2010)
Pangaea, Inc. v. Flying Burrito LLC
647 F.3d 741 (Eighth Circuit, 2011)
K-V Pharmaceutical Co. v. J. Uriach & CIA, S.A.
648 F.3d 588 (Eighth Circuit, 2011)
Donald R. Rees v. Mosaic Technologies, Inc
742 F.2d 765 (Third Circuit, 1984)
Dakota Industries, Inc. v. Dakota Sportswear, Inc.
946 F.2d 1384 (Eighth Circuit, 1991)
Pecoraro v. Sky Ranch for Boys, Inc.
340 F.3d 558 (Eighth Circuit, 2003)
Walker v. Shinseki
708 F.3d 1331 (Federal Circuit, 2013)
Pope v. Elabo GmbH
588 F. Supp. 2d 1008 (D. Minnesota, 2008)
Centennial Insurance Co. v. Zylberberg
422 N.W.2d 18 (Court of Appeals of Minnesota, 1988)
Zumbro, Inc. v. California Natural Products
861 F. Supp. 773 (D. Minnesota, 1994)
Daimler AG v. Bauman
134 S. Ct. 746 (Supreme Court, 2014)
Walden v. Fiore
134 S. Ct. 1115 (Supreme Court, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
Travel Leaders Leisure Group, LLC v. Cruise & Travel Experts, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/travel-leaders-leisure-group-llc-v-cruise-travel-experts-inc-mnd-2020.