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Ameritox, Ltd. v. Savelich

Ameritox, Ltd. v. Savelich

United States District Court for the District of Maryland, Northern Division

March 11, 2015, Decided; March 11, 2015, Filed

CIVIL NO.: WDQ-15-499

Opinion

 [*391]  MEMORANDUM OPINION

Ameritox, Ltd. ("Ameritox")1 sued Robert Savelich for breach of contract and other claims. ECF No. 1.2 On February 25, 2015, the Court granted Ameritox's motion for a temporary restraining order ("TRO"). ECF No. 12.3 On March 9, 2015, the Court held a preliminary injunction  [*392]  hearing. ECF No. 19.4 For the following reasons Ameritox's motion for a preliminary injunction will be denied.5

I. Background

From April 16, 2010 to January 2015, Savelich worked for Ameritox as a District Manager responsible for the Northwest district. ECF No. 9-5 ("Hopkins Decl.") ¶¶ 6, 12.6 On April 12, 2010, Savelich signed a Confidentiality7 and Noncompetition8 Agreement ("Agreement").9 Id. ¶ 7; Hopkins Ex. 2.10 On April 13, 2010 Savelich signed an Employee Agreement on Inventions, Improvements, Copyright, and Trade Secrets ("Trade Secrets Agreement"),11 and an Employee Confidentiality and HIPAA Privacy Agreement ("HIPAA  [*393]  Agreement").12 Id. ¶¶ 8, 9; Hopkins Ex's. 3, 4.13 All agreements were signed by Savelich at his Oregon home. Savelich Decl. ¶ 10.

On December 19, 2014, Savelich informed [**7]  James Tully, Ameritox Regional Manager, that he would be resigning from Ameritox to work for Ameritox's competitor, Physicians Choice Laboratory Services ("PCLS"). ECF No. 10-4 (Tully Decl.) ¶ 25; Tully Ex. 1 (Savelich resignation email). Savelich told Tully that he did not think the Agreement would present any issues because PCLS focuses on different product lines, although Savelich would be responsible for Washington, Oregon, and other western states. Tully Decl. ¶¶ 26-27.14

In February 2015, upon learning that a PCLS recruiter had solicited an Ameritox employee, and had mentioned its successful recruitment of Savelich, Ameritox reviewed Savelich's Ameritox email account. Id. ¶¶ 29-30; see also ECF No. 9-6 ("Carr Decl.") (describing the efforts of Eric Carr, Network, Security and Compliance Manager, to search for emails from Savelich's work account to external accounts). Ameritox learned that, on December 23, 2014, and December 29, 2014, Savelich had sent several [**8]  emails from his work account to his personal account,15 to which he allegedly attached Confidential Information.16 They include:

• A December 23, 2014 email with the subject line "IMS.7z," to which Savelich attached a spreadsheet containing data on about 35,000 healthcare providers in Savelich's region. ECF No. 20 ("Field Decl.") ¶ 5; Field Ex.'s A, A -1; Tully Decl. ¶ 32(a).17 Those providers are Ameritox's past, present, and potential customers. Tully Decl. ¶ 32(a). Ameritox purchased the health provider information from IMS Health ("IMS"). Tully Decl. ¶ 9. Savelich also attached customer lists from Ameritox's proprietary "Territory Management Tool" ("TMT"). Field Decl. ¶ 5(b); Field Ex. A-2; Tully Decl. ¶¶ 11, 32(b).

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92 F. Supp. 3d 389 *; 2015 U.S. Dist. LEXIS 30254 **

AMERITOX, LTD., Plaintiff, v. ROBERT SAVELICH, Defendant.

CORE TERMS

customer, covenant, trade secret, email, confidentiality, nonsolicitation, soliciting, employees, misappropriation, contends, restrictive covenant, injunction, preliminary injunction, irreparable harm, economic value, subject line, circumstances, provider, asserts, parties, merits, likelihood of success, customer information, overly broad, noncompetition, proprietary, disclosure, includes, barring, loyalty

Civil Procedure, Jurisdiction, Diversity Jurisdiction, General Overview, Injunctions, Grounds for Injunctions, Evidence, Burdens of Proof, Allocation, Remedies, Preliminary & Temporary Injunctions, Federal & State Interrelationships, Choice of Law, Contracts Law, Contract Conditions & Provisions, Business & Corporate Compliance, Preemployment Practices, Labor & Employment Law, Preemployment Practices, Labor & Employment Law, Conditions & Terms, Trade Secrets & Unfair Competition, Noncompetition & Nondisclosure Agreements, Forum & Place, Contracts Law, Types of Contracts, Covenants, Contract Interpretation, Employment Relationships, Employment Contracts, Customers of Former Employer, Trade Secrets, Trade Secrets Law, Trade Secret Determination Factors, Definition Under Uniform Act, Economic Value, Misappropriation Actions, Definitions of Misappropriation, Irreparable Harm, Inevitable Disclosure, Trade Secrets Law, Federal Versus State Law, Uniform Trade Secrets Act, Fiduciary Responsibilities, Common Law