Zimmer US, Inc. v. Miller

CourtDistrict Court, N.D. Indiana
DecidedJune 6, 2023
Docket3:23-cv-00263
StatusUnknown

This text of Zimmer US, Inc. v. Miller (Zimmer US, Inc. v. Miller) is published on Counsel Stack Legal Research, covering District Court, N.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Zimmer US, Inc. v. Miller, (N.D. Ind. 2023).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF INDIANA SOUTH BEND DIVISION

ZIMMER US, INC.,

Plaintiff,

v. Case No. 3:23-CV-263 JD

BRYAN MILLER,

Defendant.

OPINION AND ORDER The Plaintiff, Zimmer US, Inc. (d/b/a Zimmer Biomet) has moved for the Court to enter a preliminary injunction1 against defendant Bryan Miller to prohibit him from further violations of the non-competition agreement he signed with them. (DE 4.) For the following reasons, the motion will be granted.

A. Factual Background Zimmer Biomet is a business entity engaged in the development, manufacture, and sale of a variety of devices and services related to orthopedic reconstructive, trauma, bone healing and surgical devices. A large portion of Zimmer’s customer base are the surgeons who use their products, and Zimmer accordingly expends considerable resources to build and maintain goodwill with those surgeons and the medical facilities they practice at. As part of this effort, Zimmer utilizes the services of sales representatives such as Mr. Miller to develop and maintain business relationships with clients.

1 While captioned as a motion for a temporary restraining order (“TRO”), the Court found this motion to actually be one for a preliminary injunction. (see DE 7.) Mr. Miller began his employment as a sales associate for Apex Surgical, LLC, in February 2018. (DE 1 at ¶¶ 2, 17.) Apex Surgical is an independent distributor for Zimmer Biomet and uses sales representatives to market and sell Zimmer products and services. (Id. at ¶¶ 2, 17.) As a sales representative Mr. Miller was assigned to cover a geographic territory which

included Western Pennsylvania and Eastern Ohio. (Id. at ¶ 17.) He was responsible for developing relationships with several Zimmer Biomet customers including Advanced Surgical Hospital in Washington, Pennsylvania. (Id. at ¶ 29.) In performing his duties, Mr. Miller was given access to confidential and proprietary information about Zimmer Biomet’s and Apex Surgical’s business.2 (Id. at ¶¶ 18–19.) As a condition of his employment with Apex, Zimmer Biomet required Mr. Miller to executive a non-competition and non-solicitation Agreement. Mr. Miller executed that agreement on February 13, 2019. (DE 1-1 at 5.) The Agreement includes non-competition and non-solicitation provisions. The non- competition provisions require that during Mr. Miller’s employment and for a period of one-year after, he cannot engage in “Competitive Activity” in any geographical area he covered during the

18-month period preceding his separation from employment. (DE 1-1 at 1). “Competitive Activity” is defined by the Agreement as including “(i) any activity of the type in which Sales representative was engaged on behalf of [Apex Surgical] at any time during the eighteen (18) month period preceding the termination of Sales Representative’s engagement that is competitive with the business of Zimmer Biomet products.” Id. The non-solicitation provisions require that during Mr. Miller’s employment and for a period of one-year after, he cannot solicit or provide competing services to sell any competing

2 For convenience, throughout this order the Court may refer to Zimmer as Mr. Miller’s former employer even though his actual employer was Apex Surgical. This has no bearing on the legal analysis of the Agreement between Miller, Apex, and Zimmer. products with any “Protected Customer.” (DE 1-1 at 1–2.). “Protected Customer” is defined by the Agreement as any person or corporation “serviced, sold to, approached or solicited…by [the] Sales Representative…, during any part of the eighteen (18) month period preceding the termination of Sales Representative’s engagement , or…about which Sales Representative

obtained, learned or developed Confidential Information (as defined herein) during Sales Representative’s engagement.” (DE 1-1 at 2.) Zimmer alleges that Mr. Miller violated these two restrictive covenants before and following his resignation from Apex on March 19, 2023. (DE 1 at ¶ 25.) Zimmer specifically alleges that immediately after his resignation, he began a position with b-ONE Ortho, Corporation, a direct competitor of Zimmer, in a sales capacity similar to his former role with Apex. (Id. at ¶¶ 3, 26–27.) Zimmer alleges Mr. Miller violated the Agreement on March 20, 2023, the day after he resigned, by providing services for b-ONE at Advanced Surgical Hospital. (Id. at ¶¶ 29–30.) Advanced Surgical Hospital being a client which he had previously serviced on behalf of Zimmer. (Id. at ¶ 29.) Apex sent Mr. Miller a letter on March 21, 2023, reminding him

of his obligations under the Agreement and demanding he cease his violations. (Id. at ¶ 34.) Mr. Miller did not respond to the letter and allegedly continued to violate the Agreement by providing products and services on b-ONE’s behalf at Advanced Surgical Hospital on March 31, 2023. (Id. at ¶¶35–36.) Zimmer also alleges that prior to his resignation, Mr. Miller was diverting Advanced Surgical Hospital business to b-ONE. Zimmer alleges that Mr. Miller emailed a nurse at Advanced Surgical Hospital nine days prior to his resignation stating that “all hips at Advanced will be the new company B1. This starts Monday the 13th. I have all the patients [sic] info.” (Id. at ¶ 32, DE 1-2.) B. Legal Standard “A preliminary injunction is an extraordinary remedy never awarded as of right.” Winter v. Nat. Res. Def. Council, Inc., 555 U.S. 7, 24 (2008) (internal citations omitted). To obtain a

preliminary injunction, a plaintiff must make four showings: (1) without this relief it will suffer “irreparable harm”; (2) traditional legal remedies would be inadequate; (3) it has some likelihood of prevailing on the merits of its claims, and (4) that the balance of harms weighs in favor of granting the injunction. Speech First, Inc. v. Killeen, 968 F.3d 628, 637 (7th Cir. 2020) (quoting Courthouse News Serv. v. Brown, 908 F.3d 1063, 1068 (7th Cir. 2018)). Regarding the balancing phase, if the plaintiff is likely to prevail on the merits, the balance of harms need not weigh as heavily in her favor. Id. (internal citations omitted). The balancing phase also considers the public interest, or “the effects the preliminary injunction—and its denial—would have on nonparties.” Id.

C. Discussion The Court will begin by resolving whether the need for a preliminary injunction is moot. The Court will then advance to the merits of Zimmer’s motion. (1) Mootness Mr. Miller’s response to the motion indicates he and his employer, while not necessarily agreeing with Zimmer Biomet’s interpretation of the Agreement, have taken steps to avoid conduct which offends the Agreement as interpreted by Zimmer Biomet.3 (DE 12 at 3.) Mr. Miller argues the need for a preliminary injunction has been mooted by his actions. The standard for whether a preliminary injunction is moot is whether there is a reasonable expectation that the alleged wrong will be repeated. Lucini Italia Co. v. Gappolini, 288 F.3d

1035, 1038 (7th Cir. 2002) (citing Wilk v. American Med. Ass’n, 895 F.2d 352, 367 (7th Cir. 1990)). The burden of persuasion for this proposition lies with the defendant. Id. Mr. Miller offers two affidavits as evidence to establish the wrong will not be repeated. First, is the affidavit of Danny Egerton who is the U.S. National Director of Sales for b-ONE. Mr.

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Zimmer US, Inc. v. Miller, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zimmer-us-inc-v-miller-innd-2023.