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ECL Grp., LLC v. Mass

ECL Grp., LLC v. Mass

United States District Court for the Northern District of Texas, Dallas Division

February 20, 2018, Decided; February 20, 2018, Filed

Civil Action No. 3:17-CV-2399-D

Opinion

MEMORANDUM OPINION AND ORDER

In this removed action, plaintiffs ECL Group ("ECL") and IO Practiceware, Inc. ("IOPW") move to remand, and defendant Troy Mass ("Mass") moves for an opinion on choice of law, dismissal or transfer, dissolution of a state court temporary restraining order ("TRO"), and a briefing schedule on attorney's fees and other relief. For the reasons that follow, the court denies the motion to remand; grants Mass's motion for an opinion on choice of law to the extent of holding that California law applies; denies Mass's motion for dismissal or transfer; denies as moot Mass's motion for dissolution of the state court TRO (which has already expired); and denies without prejudice Mass's motion for a briefing schedule on attorney's [*2]  fees and other relief.

Mass is a former top sales representative for ECL and IOPW, affiliated entities that offer software, practice management systems, and other services to ophthalmology and optometry offices. In June 2016 Mass signed an Employment, Confidentiality, Non-Solicitation and Non-Competition Agreement ("Employment Agreement") with ECL.1 The Employment Agreement contains a Texas choice-of-law provision2 and a Texas forum selection clause.3 It also includes a noncompetition provision that states, in pertinent part:

(a) Noncompetition. For the duration of the Term of Employment and for two years thereafter ("Restricted Period"), Employee will not, directly or indirectly, in any capacity whatsoever, individually or on behalf of any other person or entity, engage in, own, manage, operate, finance, control, or participate in the ownership, management operation, financing or control of, be employed by, associated with, or in any manner connected with, lend the Employee's name or any similar name to, lend the Employee's credit to or render services or advice to, any business engaged or about to become engaged in the Business of the Employer, or any of its Affiliates in the Market [*3]  Area.

Emp. Agmt. ¶ 4.2(a) (first italics in original; second italics underlined in original). And it contains a confidentiality provision:

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2018 U.S. Dist. LEXIS 26287 *; 2018 WL 949235

ECL GROUP, LLC and IO PRACTICEWARE, INC., Plaintiffs, VS. TROY MASS, Defendant.

CORE TERMS

venue, amount in controversy, state court, parties, injunction, denies, threshold, employment agreement, attorney's fees, sales, confidential information, choice of law, exceeds, reside, greater interest, trade secret, removal, preponderance of evidence, choice-of-law, contracting, diversity, contacts, holds, restrictive covenant, district court, employees, briefing, covenant, damages, moves