Tribus, LLC v. Goodhue

CourtDistrict Court, E.D. Missouri
DecidedMay 17, 2021
Docket4:21-cv-00150
StatusUnknown

This text of Tribus, LLC v. Goodhue (Tribus, LLC v. Goodhue) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tribus, LLC v. Goodhue, (E.D. Mo. 2021).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MISSOURI EASTERN DIVISION

TRIBUS, LLC, ) ) Plaintiff, ) ) v. ) Case No. 4:21-cv-00150-MTS ) GOODHUE, et al., ) ) Defendants. )

MEMORANDUM AND ORDER This matter is before the Court on Defendants’ Motions to Dismiss, Docs. [15], [21], and [31]. For the following reasons, the Court grants all three Motions. I. BACKGROUND1 Plaintiff Tribus, LLC is a Missouri company that provides technological services to real estate brokers. Plaintiff hired Defendant Jennifer Goodhue in January 2020 as its director of broker services; Plaintiff later promoted Goodhue to the position of director of client services, where she oversaw “operations, communications, and account management between Plaintiff and [its] medium to large brokerage clients throughout the United States and worldwide.” Doc. [1] ¶ 10. During her time with Plaintiff, Goodhue had access to Plaintiff’s alleged confidential information and trade secrets, including its client list, prospective client targets, and pricing models and information, among other internal documents and plans. In June 2020, unbeknownst to Plaintiff, Goodhue scheduled a meeting with Defendant Back At You, Inc (“BAY”), which, according to Plaintiff, is its competitor. In January 2021, just before leaving the employ of Plaintiff, Goodhue

1 The Court draws this background from the Complaint, Doc. [1], the Motions to Dismiss and related papers, and the papers relevant to Plaintiff’s Motion for Temporary Restraining Order, Doc. [6], construing the facts, as it must on a motion to dismiss for lack of personal jurisdiction, in the light most favorable to Plaintiff Tribus. See Pederson v. Frost, 951 F.3d 977, 979 (8th Cir. 2020). sent multiple emails from her Plaintiff-issued email account to what appears to be her BAY-issued email account. Doc. [7-2]. Goodhue subsequently deleted those emails from her Plaintiff email account, preventing Plaintiff from, to this point, uncovering what Goodhue sent to the BAY email account. She also, Plaintiff asserts, downloaded confidential documents from Plaintiff’s computer

system, and she accessed and edited Plaintiff’s proprietary client list the day before she resigned from Plaintiff. She officially resigned from Plaintiff January 21, 2021. She began working at BAY sometime in January 2021. Plaintiff hired Defendant Paige Trygstad as a client success representative in January or February 2020, in which capacity she worked closely with Goodhue and, like Goodhue, had access to information related to client needs and contracts, confidential business practices, and sales. She resigned from Plaintiff around January 4, 2021, but kept her Plaintiff-issued computer and, Plaintiff claims, accessed it after leaving the company, in spite of Plaintiff’s request that she return the computer and its “revocation of authorization to access or otherwise use the computer.” Doc. [34-1] ¶ 31. Trygstad returned the computer “after being alerted to the Complaint” in this case.

Doc. [7] at 3. As with Goodhue, BAY hired Trygstad in January 2021. Plaintiff alleges that Trygstad removed from the computer Plaintiff’s confidential and proprietary information and sent it to Goodhue or BAY. Plaintiff contends that Goodhue and Trygstad transmitted its confidential information and trade secrets to BAY both during and after their employment with Plaintiff and that Goodhue and Trygstad have used that information for BAY’s benefit. Doc. [1] ¶¶ 32–45. Plaintiff further claims that BAY “encouraged or demanded that Goodhue and Trygstad use the confidential information . . . they obtained” to solicit Plaintiff’s employees and customers on BAY’s behalf or, alternatively, that BAY has simply “used for its benefit the confidential . . . materials” Goodhue and Trygstad took from Plaintiff. Id. ¶¶ 46–47. Plaintiff brought this action, claiming against Goodhue and Trygstad a breach of the duty of loyalty (Counts I and III) and violations of the Missouri Computer Tampering Act (Counts II and IV), while making claims against all three Defendants for trade secret misappropriation under the federal Defend Trade Secrets Act as well as under Missouri law (Counts V and VI). Doc. [1].

Relevant to the instant Motions, BAY is incorporated in Delaware and has its principal place of business in California. According to BAY’s CEO, Michael Glazer, BAY has never had an office in Missouri, is not registered with the Missouri Secretary of State to conduct business in Missouri, has never had a bank or investment account in Missouri, does not own any real estate in Missouri, and does not send its employees to events or meetings in Missouri. Doc. [15-2]. Further, BAY’s website is generally accessible, and BAY advertises nationally, but it does not specifically target Missouri in its advertisements. Id. Plaintiff’s director of strategy, Eric Stegemann, averred in a declaration that BAY “currently provides services to at least two Missouri companies,” Doc. [20-1] ¶ 33, a claim BAY does not dispute. Meanwhile, both Goodhue and Trygstad are residents

of Colorado and lived in Colorado throughout the entirety of their employment with Tribus. Further, neither ever traveled to Missouri for their work for Tribus. With these facts in mind, the Court turns to Defendants’ Motions. II. LEGAL STANDARD “To survive a motion to dismiss for lack of personal jurisdiction, a plaintiff must make a prima facie showing that personal jurisdiction exists, which is accomplished by pleading sufficient facts ‘to support a reasonable inference that the defendant[] can be subjected to jurisdiction within the state.’” K-V Pharm. Co. v. J. Uriach & CIA, S.A., 648 F.3d 588, 591–92 (8th Cir. 2011) (omission in original) (quoting Dever v. Hentzen Coatings, Inc., 380 F.3d 1070, 1072 (8th Cir. 2004)). Once personal jurisdiction has been challenged, that prima facie showing “must be tested, not by the pleadings alone, but by the affidavits and exhibits presented with the motions and opposition thereto.” Furminator, Inc. v. Wahba, No. 4:10-cv-01941-AGF, 2011 WL 3847390, at *2 (E.D. Mo. Aug. 29, 2011) (quoting Miller v. Nippon Carbon Co., 528 F.3d 1087, 1090 (8th Cir.

2008)). The Court views the evidence in the light most favorable to Plaintiff. Pederson v. Frost, 951 F.3d 977, 979 (8th Cir. 2020). The party seeking to establish the Court’s personal jurisdiction carries the burden of proof, however, and that burden does not shift to the party challenging jurisdiction. Fastpath, Inc. v. Arbela Techs. Corp., 760 F.3d 816, 820 (8th Cir. 2014). The Court engages in a two-part inquiry to assess whether it has personal jurisdiction over non-resident defendants. NEXTEP, LLC v. KABA Workforce Sols., No. 4:07-cv-01107-RWS, 2007 WL 9809030, at *2 (E.D. Mo. Oct. 5, 2007). To exercise jurisdiction, the Court must find both (1) that Defendants’ actions are covered by the Missouri long-arm statute and (2) that its exercise of jurisdiction comports with due process requirements. See Myers v. Casino Queen, Inc., 689 F.3d 904, 909–910 (8th Cir. 2012) (holding that federal district courts in Missouri must

conduct separately the long-arm-statute and due-process inquiries); Insituform Techs., Inc. v. Reynolds, Inc., 398 F. Supp. 2d 1058, 1062–63 (E.D. Mo. 2005).

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