ROBIN J. CAUTHRON, District Judge.
Now before the Court is Defendants' Motion to Dismiss for Lack of Personal Jurisdiction, as well as Plaintiff's Response and Defendants' Reply thereto. (Dkt. Nos. 3, 4, 7.) The motion is now at issue.
Plaintiff is an Oklahoma-based company, with headquarters in Oklahoma City, that mainly provides "electrical infrastructure installation and support services to electric cooperatives and electric utility companies." (Dkt. No. 1-2, p. 1.) Despite its Oklahoma roots though, Plaintiff also maintains an office in Texas. In 2017, Plaintiff hired both Defendants—two Texas residents—to work in its Texas office.
During their time with Plaintiff, Defendants spent most of their time in Texas. Defendant Whalen did come to Oklahoma for some business meetings, and even obtained an Electrical Journeyman License in the state. (Dkt. No. 4, pp. 3-4.) Nonetheless, for the most part, Defendants' interactions with Oklahoma were electronic. These communications included reaching out to Oklahoma for various aspects of their work, including to fill their staffing needs. (
Both Defendants resigned in May 2019. According to Plaintiff, though, before resigning, they began soliciting regular customers and inducing them to do business with Plaintiff's competitor, for whom Defendants went to work soon after resigning. And, after they resigned, they began soliciting Plaintiff's employees to transition with them to Plaintiff's competitor. (Dkt. No. 4-1, p. 4.)
Plaintiff then filed this suit, which accuses Defendants of breach of contract, tortious interference, and violations of the Oklahoma Uniform Trade Secrets Act, as well as the Oklahoma Deceptive Trade Practices Act. (
When a court's jurisdiction is contested, the plaintiff has the burden of proving jurisdiction exists.
To demonstrate personal jurisdiction over a nonresident defendant, a plaintiff must satisfy the requirements of the forum's long arm statute, as well as the federal Constitution.
Here, minimum contacts may be demonstrated by showing a defendant's contacts with the forum warrant the exercise of specific jurisdiction.
Taking Plaintiff's facts as true, the Court must first determine whether Plaintiff has demonstrated Defendants' minimum contacts with Oklahoma. According to Plaintiff, Defendants agreed to work for Plaintiff—an Oklahoma-based company with headquarters in Oklahoma City—in 2017. For both Defendants, their employment contracts are governed by Oklahoma law, and they were directed to contact Oklahoma-based contacts with any questions or concerns about the contract.
Both Defendants also reached out to Oklahoma for different aspects of their work, including to fill their staffing needs. Defendant Whalen, moreover, attended business development meetings at Plaintiff's main office in Oklahoma, and obtained an Electrical Engineering Journeyman License in Oklahoma. And, perhaps most importantly, Plaintiff alleges that Defendants illegally solicited Plaintiff's regular customers, as well as its employees—all in an effort to damage Plaintiff in Oklahoma. Upon review of these facts, the Court finds that Plaintiff has shown that Defendants have developed sufficient minimum contacts with Oklahoma.
Nevertheless, the Court still must determine whether jurisdiction over Defendants is "`reasonable in light of the circumstances'" and therefore comports with the "traditional notions of fair play and substantial justice."
On balance, the Court finds that these factors weigh in Defendants' favor. Indeed, the Court finds that only factor (2) favors Plaintiff. Oklahoma certainly has a strong interest in interpreting its own laws. But factors (1) and (4) favor Defendants, given that they are individuals, and that many potential witnesses reside in Texas. And even though factor (3) takes into account Plaintiff's interest, it weighs much heavier where "a Plaintiff's chances of recovery will be greatly diminished by forcing [it] to litigate in another forum."
For the reasons stated above, Defendants' Motion to Dismiss for Lack of Personal Jurisdiction (Dkt. No. 3) is GRANTED.
IT IS SO ORDERED.