Wilbur-Ellis Company LLC v. Gompert

CourtDistrict Court, D. Nebraska
DecidedFebruary 4, 2022
Docket8:21-cv-00340
StatusUnknown

This text of Wilbur-Ellis Company LLC v. Gompert (Wilbur-Ellis Company LLC v. Gompert) is published on Counsel Stack Legal Research, covering District Court, D. Nebraska primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wilbur-Ellis Company LLC v. Gompert, (D. Neb. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEBRASKA

WILBUR-ELLIS COMPANY LLC,

Plaintiff, 8:21CV340

v. MEMORANDUM JOSH GOMPERT, AARON PETERSEN, AND ORDER JAMES KUNZMAN, and CHAD MUELLER,

Defendants.

This matter is before the Court on defendants Josh Gompert (“Gompert”), Aaron Petersen (“Petersen”), James Kunzman (“Kunzman”), and Chad Mueller’s (“Mueller” and collectively, “defendants”) Motion to Dismiss (Filing No. 21). Mueller asks the Court to dismiss him from the case for lack of personal jurisdiction. Failing that, he joins the other defendants in moving to dismiss the Amended Complaint (Filing No. 11) for failure to state a claim. See Fed. R. Civ. P. 12(b)(2), (6). Opposing dismissal on either ground (Filing No. 24), plaintiff Wilbur-Ellis Company LLC (“Wilbur-Ellis”) moves (Filing No. 23) for oral argument. For the reasons stated below, Wilbur-Ellis’s motion for oral argument is denied; the defendants’ motion to dismiss is denied in part. I. BACKGROUND Wilbur-Ellis is a California company with its principal place of business in San Francisco. It serves its “farm customers” by marketing, distributing, and providing “agricultural chemicals, fertilizer, seed, and related agronomic products, services, and technologies” internationally. Wilbur-Ellis succeeds “[b]y leveraging its vast portfolio of branded technologies and biological solutions” and “its relationships and arrangements with suppliers, licensors, and other business partners” to serve its customers’ needs. Wilbur-Ellis “goes to great lengths” to develop and maintain its trade secrets and confidential business information. The defendants each worked for Wilbur-Ellis. Gompert served as a Regional Sales Manager in Nebraska, Iowa, Kansas, and Missouri from October 1, 2014. He was promoted to Strategic Account Advisor on August 1, 2021, which made him responsible for some of Wilbur-Ellis’s most-important accounts. Petersen began working for Wilbur- Ellis on January 31, 2017, as a Sales Representative. About three years later, he became an Agronomist, focusing on research and product development. He also worked with customers on site. Kunzman joined Wilbur-Ellis as a Territory Seed Representative on July 20, 2020. He worked with customers and dealers. Mueller began working for Wilbur-Ellis on June 28, 2021, as a Regional Seed Manager. His position required him to interact with “customers, resellers, suppliers, licensors, and business partners” and understand Wilbur- Ellis’s “rebate and dealer programs.” All four men had access to Wilbur-Ellis’s “highly confidential proprietary information and trade secrets.”1 On or about August 13, 2021, the defendants and eleven other Wilbur-Ellis employees resigned. The defendants advised Wilbur-Ellis that they would start working for J.R. Simplot Company (“Simplot”), a competitor, when their resignations became effective. On August 17, 2021, Wilbur-Ellis advised the defendants by letter that it was accepting their resignations effective at the close of business on August 27, 2021. Wilbur- Ellis explained the defendants would remain employees and receive their pay through that date but “would be placed on inactive employment status effectively immediately.” Wilbur-Ellis told the defendants to “cease all contact with or solicitation of” its customers and to return any Wilbur-Ellis property or equipment in their possession without using or accessing the equipment. Wilbur-Ellis warned it intended “to conduct a full forensic audit of the electronic devices upon their return” to ensure the employees complied.

1Wilbur-Ellis has not alleged that any defendant signed any agreements relating to competition, solicitation, or protection of trade secrets, customer, or employees. After the defendants began working for Simplot, Wilbur-Ellis began to suspect they had made a concerted effort to unfairly compete with Wilbur-Ellis and misappropriate its trade secrets and other confidential information before they left. On September 1, 2021, Wilbur-Ellis filed suit (Filing No. 1). In its amended complaint, Wilbur-Ellis asserts four different causes of action against the defendants (1) breach of the duty of loyalty, (2) violation of the Defend Trade Secrets Act (“DTSA”), 18 U.S.C. § 1836 et seq., (3) violation of the Nebraska Trade Secrets Act (“NTSA”), Neb. Rev. Stat. § 87-501 et seq., and (4) tortious interference with business relationships and expectancies. The defendants now move to dismiss all claims against them. II. DISCUSSION A. Oral Argument Wilbur-Ellis moves the Court pursuant to Nebraska Civil Rule 7(e) to permit one hour of oral argument on the defendants’ pending motion to dismiss. According to Wilbur- Ellis, “the number of claims at issue and the nature of the underlying allegations” require allowing the parties an additional opportunity “to clarify their positions and the relevant standards” and “better identify the extent to which factual disputes remain.” Wilbur-Ellis contends oral argument will avoid the risk of “an outcome where one or more claims is dismissed without prejudice, necessitating filing of a second amended complaint and raising the possibility of further motion practice.” The defendants oppose oral argument (Filing No. 28). They predict Wilbur-Ellis “will use any oral argument to try and amend or supplement its implausibly pleaded claims, as it has tried (but failed) to do in its Opposition Brief.” The defendants contend that Wilbur-Ellis’s “approach, on the whole, is improper.” Although the Court does not necessarily share the defendants’ fear of oral argument run amok, it nonetheless finds the circumstances in this case are not so complex or extraordinary as to require oral argument. Accordingly, Wilbur-Ellis’s motion for oral argument is denied. B. Personal Jurisdiction 1. Standard of Review Mueller argues Wilbur-Ellis has failed to establish personal jurisdiction over him. “To defeat a motion to dismiss for lack of personal jurisdiction, the nonmoving party need only make a prima facie showing of jurisdiction.” Epps v. Stewart Info. Servs. Corp., 327 F.3d 642, 647 (8th Cir. 2003). Wilbur-Ellis “must plead sufficient facts to support a reasonable inference that [Mueller] can be subjected to jurisdiction within the state.” Creative Calling Sols., Inc. v. LF Beauty Ltd., 799 F.3d 975, 979 (8th Cir. 2015) (internal marks omitted) (quoting K-V Pharm. Co. v. J. Uriach & CIA, S.A., 648 F.3d 588, 591-92 (8th Cir. 2011)). In reviewing a Rule 12(b)(2) motion, the Court “may look beyond the pleadings to determine whether personal jurisdiction exists, including reviewing affidavits and other exhibits.” Pederson v. Frost, 951 F.3d 977, 979 (8th Cir. 2020). “At the motion stage, the action should not be dismissed for lack of jurisdiction if the evidence, viewed in the light most favorable to [the nonmoving party], is sufficient to support a conclusion that the exercise of personal jurisdiction over [the moving party] is proper.” Creative Calling, 799 F.3d at 979. In a diversity case, the Court “may assume jurisdiction over nonresident defendants only to the extent permitted by the long-arm statute of the forum state, and by the due process clause of the Fourteenth Amendment.” Burlington Indus., Inc. v. Maples Indus., Inc., 97 F.3d 1100, 1102 (8th Cir. 1996).

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Wilbur-Ellis Company LLC v. Gompert, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wilbur-ellis-company-llc-v-gompert-ned-2022.