LEO T. SOROKIN, District Judge.
Plaintiff Manganaro Northeast, LLC ("Manganaro" or "the Company") sues its former employee, Defendant Sandra De La Cruz, for injunctive relief and damages in relation to De La Cruz's resignation from Manganaro and current employment with one of its competitors. Doc. No. 1. Presently before the Court is Manganaro's motion for a preliminary injunction to prohibit De La Cruz from certain employment activities. Doc. No. 5. For the reasons that follow, Manganaro's motion is DENIED.
Manganaro is a Massachusetts contracting firm specializing in the installation of drywall in commercial buildings throughout New England. Doc. No. 7-2 ¶¶ 2-3. De La Cruz, a Connecticut resident, began working in Manganaro's Connecticut office in February 2016 as an Assistant Project Manager.
As a condition of her employment with Manganaro, De La Cruz entered into a Restrictive Covenant and Confidentiality Agreement (the "Agreement"). Doc. No. 7-2 ¶ 9; Doc. No. 13-1 ¶
7. The Agreement provided, in relevant part:
Doc. No. 1-1 ¶ 2 (the "non-compete clause"). The Agreement also contained a Confidentiality provision, which provided:
De La Cruz resigned from Manganaro in March 2018, telling her supervisor, Patrick Glomb, that she "wanted a new career path" and "did not know" what her next job was. Doc. No. 7-2 ¶ 17. In fact, De La Cruz accepted a job offer from Professional Drywall Construction, Inc. ("PDC"), a direct competitor to Manganaro in the drywall business in Massachusetts, Connecticut, and Vermont.
Manganaro seeks a preliminary injunction to prevent De La Cruz from violating the terms of the Agreement. Doc. No. 7 at 1. Specifically, Manganaro requests that the Court enjoin De La Cruz from (a) working for a competitor of Manganaro; (b) being involved with any proposals, bids, applications, projects, or customers that Manganaro contracted with, was involved with, or considered during De La Cruz's employment with Manganaro; (c) soliciting any employee or independent contractor of Manganaro to leave or compete with Manganaro; (d) using any confidential, proprietary information concerning the business or affairs of Manganaro or concerning Manganro's customers, clients, or employees; and (e) disclosing any trade secrets of Manganaro. Doc. No. 5-4. The practical effect of such an injunction would be to require De La Cruz to resign from PDC and to search for employment in another field
In determining whether to grant a motion for a preliminary injunction, this Court must weigh four factors: (1) whether Manganaro has shown a likelihood of success on the merits, (2) whether Manganaro has shown that it would suffer irreparable harm if the injunction were denied, (3) the balance of the relevant hardships, and (4) any impact that the Court's ruling may have on the public interest.
Manganaro limits its argument to its breach of contract claim (Count I). Doc. No. 1 ¶¶ 22-25; Doc. No. 7 at 7. The Court therefore does not address whether Manganaro is likely to succeed on its claims for breach of the covenant of good faith and fair dealing (Count II), misappropriation of trade secrets (Count III), and tortious interference with contractual and advantageous business relations (Count IV). Doc. No. 1 ¶¶ 26-38. To show a likelihood of success on its breach of contract claim, Manganaro must demonstrate that it is likely to establish that a valid, binding agreement existed, that De La Cruz breached the terms of the agreement, and that Manganaro sustained damages as a result of the breach.
Under these circumstances, Manganaro fails to demonstrate that it sustained harm resulting from De La Cruz's employment with PDC. Manganaro has not attempted to show either that De La Cruz actually misappropriated any confidential information stored on Manganaro's computer server or that she actually disclosed or used any particular confidential information in her employment with PDC. Moreover, De La Cruz represents that she has not done so. Doc. No. 13-1 ¶ 14.
Manganaro attributes its lost business revenue from the Amherst College Project to De La Cruz's defection. Doc. No. 7-2 ¶ 21 ("It is estimated that the loss of revenue on the Amherst College Project due to the actions of De La Cruz and PDC is at least $150,000-$200,000 if not more."). However, De La Cruz represents that her involvement on the Amherst College Project while at Manganaro was limited to assisting Project Managers in the early stages and again from December 2017 until March 2018. Doc. No. 13-1 ¶ 11. Moreover, De La Cruz avers that she was not involved with the decision by the Amherst College Project's general contractor to engage PDC for drywall services and that she has done no work on the Amherst College Project while employed by PDC.
Manganaro falls back on its contention that, if De La Cruz has not already done so, she inevitably will disclose and use Manganaro's confidential and proprietary information and trade secrets at PDC in the course of performing her regular duties. Doc. No. 7 at 10. However, the
Manganaro advances an additional argument in support of the likelihood of success on the merits of its contract claim: that De La Cruz breached the non-compete clause's prohibition on working for a direct competitor. There is no dispute that the Agreement prohibits De La Cruz from "directly or indirectly engag[ing] in or contribut[ing] [her] knowledge and abilities to any business or entity in direct competition" with Manganaro and from "work[ing] on, or being involved in any capacity with, any proposal, bid, application, project or customer that the Company contracted with, was involved with or was considering during" De La Cruz's employment with Manganaro. Doc. No. 1-1 ¶ 2. There is also no dispute that PDC is a direct competitor to Manganaro in Connecticut. Under Massachusetts law, "[n]on-competition [a]greements are enforceable only if they are `necessary to protect a legitimate business interest, reasonably limited in time and space, and consonant with the public interest.'"
The Agreement's non-compete clause, as applied to De La Cruz on the present facts, is unenforceable. The contract language is quite broad. It prohibits De La Cruz from working, in any way, for any direct competitor to Manganaro and from working on a project for any customer of Manganaro's (without regard to De La Cruz's connection to the customer while at Manganaro). The non-compete clause also applies throughout all of New England for a period of two years. While De La Cruz was a manager, not a laborer on the site, she had no involvement with marketing, no role in preparing or submitting bids, limited contact with customers, no oversight responsibility for any project, and no identified knowledge of particular trade secrets beyond a general knowledge of Manganaro's operations and some possiblyconfidential, successful bids made by Manganaro. As to Manganaro's operations, Manganaro has not established that it had developed some "secret sauce" to the operation of its business that it shared with De La Cruz. In short, De La Cruz stands in wholly different shoes than a vice president of research and development who was one of the four top managers supervising an entire company hired away by its direct competitor to serve in an identical position.
Accordingly, Manganaro's motion for a preliminary injunction (Doc. No. 5) is DENIED. The parties shall file a joint status report by August 31, 2018 proposing the schedule to govern this case or requesting that the Court schedule a Rule 16 conference in the ordinary course.
SO ORDERED.