TruTemp Refrigeration & Commercial Climate, LLC v. Mowbray

CourtDistrict Court, M.D. Alabama
DecidedNovember 17, 2023
Docket1:23-cv-00667
StatusUnknown

This text of TruTemp Refrigeration & Commercial Climate, LLC v. Mowbray (TruTemp Refrigeration & Commercial Climate, LLC v. Mowbray) is published on Counsel Stack Legal Research, covering District Court, M.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
TruTemp Refrigeration & Commercial Climate, LLC v. Mowbray, (M.D. Ala. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF ALABAMA SOUTHERN DIVISION

TRUTEMP REFRIGERATION & ) COMMERCIAL CLIMATE, LLC, ) ) Plaintiff, ) ) CASE NO. 1:23-cv-667-ECM v. ) [WO] ) DANIELLE MOWBRAY, et al., ) ) Defendants. ) )

MEMORANDUM OPINION and ORDER I. INTRODUCTION This matter is before the Court on Plaintiff TruTemp Refrigeration & Commercial Climate, LLC’s (“Plaintiff” or “TruTemp”), motion for a temporary restraining order and a preliminary injunction, (doc. 2), wherein TruTemp seeks to: (1) enjoin Defendants Danielle Mowbray (“Mowbray”) and Amy Suzanne Hadden, also known as Amy Richardson (“Richardson”), (collectively “the Defendants”) from further use or disclosure of TruTemp’s trade secrets and confidential information; (2) require the Defendants to immediately cease use of all computers and/or electronic devices or accounts containing TruTemp’s information unlawfully taken from TruTemp; (3) require the Defendants to return all of TruTemp’s trade secrets and confidential information; (4) destroy any and all copies of such trade secrets and confidential information; (5) return TruTemp’s stolen desktop computer and files unlawfully taken from TruTemp; (6) provide any and all login credentials that were previously used by Defendants for all computers and accounts for the benefit of TruTemp, including but not limited to its physical computers and server, WinTac, Gmail, QuickBooks, and any other services or accounts; (7) provide an

accounting of any and all credit accounts opened or used by the Defendants utilizing TruTemp’s Employer Identification Number, Alabama License Number, or its United States Environmental Protection Agency License Number, and to cease utilizing any such account; (8) use good faith to cooperate in allowing TruTemp to regain access to its computer systems and online accounts; (9) provide a complete listing of any and all persons or entities to whom the Defendants disclosed TruTemp’s trade secrets and/or confidential

information, and (10) order the Defendants to preserve all evidence not otherwise returned to TruTemp and deleted. TruTemp filed this lawsuit on November 16, 2023. (Doc. 1). In its Verified Complaint, TruTemp alleges that Mowbray and Richardson misappropriated trade secrets and confidential information, including taking confidential files and passwords, for use in

a competing business. Specifically, TruTemp alleges that the Defendants violated the Computer Fraud and Abuse Act, 18 U.S.C § 1030 (“CFAA”) (Counts One, Two, and Three), the Defend Trade Secrets Act, 18 U.S.C § 1836 (“DTSA”) (Counts Four and Five), the Alabama Trade Secrets Act, ALA. CODE § 8-27-1 (“ATSA”) (Counts Six and Seven), as well as a claim of breach of fiduciary duty against Mowbray (Count Eight), and claims

of faithless servant (Count Nine), conversion (Count Ten), and unjust enrichment (Count Eleven) against both Defendants.

2 For the reasons explained below, the Court concludes that TruTemp has demonstrated, at this stage, a likelihood of success on the merits of its misappropriation of

trade secrets claims, a likelihood of irreparable injury in the absence of a restraining order issued before the Defendants can be heard in opposition, and that the equities weigh in its favor. Accordingly, TruTemp’s motion for a temporary restraining order (doc. 2) is due to be GRANTED to the extent that a temporary restraining order shall issue as set out further below. Additionally, the Court will set an evidentiary hearing on TruTemp’s motion for a preliminary injunction by separate order.

II. JURISDICTION AND VENUE The Court has original subject matter jurisdiction pursuant to 28 U.S.C. § 1331. The Court has supplemental jurisdiction over the Plaintiff’s state law claims pursuant to 28 U.S.C. § 1367(a). Based on the allegations of the Verified Complaint, the Court concludes that it can properly exercise personal jurisdiction over the Defendants and that venue

properly lies in the Middle District of Alabama, see 28 U.S.C. § 1391. III. FACTS “When ruling on a [temporary restraining order], ‘all of the well-pleaded allegations [in a movant’s] complaint and uncontroverted affidavits filed in support of the motion for a [temporary restraining order] are taken as true.’” Alabama v. U.S. Dep’t of Com., 2021

WL 2668810, at *1 (M.D. Ala. June 29, 2021) (second alteration in original) (quoting Elrod v. Burns, 427 U.S. 347, 350 n.1 (1976)).

3 TruTemp provides refrigeration and heating, ventilation, and air conditioning (“HVAC”) services to customers throughout southeast Alabama. (Doc. 1 at 4). According

to the Verified Complaint, Jerome Hughes (“Hughes”) founded TruTemp in 2022 as the sole member and owner. (Id.). The refrigeration and HVAC business is highly regulated with proper licensing required to even purchase certain materials necessary for carrying out such work. (Id.). The focus of TruTemp’s business is on commercial and industrial accounts, which “require significant time and investment to build the qualifications and goodwill necessary

to obtain this steady, recurring business.” (Id.). “To provide this high level of services, TruTemp depends on various technology platforms to manage its business. These platforms include WinTac, for service requests and quote generation, and Quickbooks, for accounts receivable and payable and general financial tracking.” (Id. at 5). Building TruTemp’s business also necessitated assembling a staff. To this end, after

previously working with Mowbray for multiple years at a prior employer in the same field, Hughes hired Mowbray at TruTemp to serve as its office administrator. (Id. at 5–6, paras. 16, 18). The Verified Complaint states it was “[i]n this position, [that] Mowbray had access to TruTemp’s commercially sensitive information, including vendor and customer contacts, contracts, service records, company cloud-based software programs, employee

files, financial information, bank accounts, and other commercially sensitive information and documents.” (Id. at 5). Hughes had trust and confidence in Mowbray to perform her role at TruTemp. (Id. at 6). In fact, Mowbray was provided a key to the office with only 4 herself and Hughes authorized to access TruTemp’s office. (Id. at 6). Further, Mowbray had remote access to cameras which were installed on the front and rear doors of

TruTemp’s office. (Id. at 6). The office staff expanded in August or September 2023 when Mowbray hired Richardson as an office assistant.1 (Id. at 7). Unbeknownst to Hughes, Mowbray gave Richardson an office key, which she was not authorized to do. (See id. at 6, para. 20; id. at 9, para. 33). Due to Hughes supervising fieldwork at night, he never met with Richardson in person while she was employed at TruTemp; however, Hughes and Richardson were

previously coworkers, and Hughes trusted Richardson. (Id. at 7). Mowbray and Richardson were the only office staff. (Id. at 7). On September 13, 2023, Mowbray resigned with immediate effect and provided no explanation for doing so. (Id. at 7, para. 26). The next day, on September 14, 2023, Hughes came to secure TruTemp’s office due to Mowbray’s resignation—Mowbray and

Richardson arrived shortly thereafter. (Id. at 7–8, paras. 27–30).

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TruTemp Refrigeration & Commercial Climate, LLC v. Mowbray, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trutemp-refrigeration-commercial-climate-llc-v-mowbray-almd-2023.