ANDREW J. PECK, United States Magistrate Judge:
Plaintiff Speedmark Transportation, Inc. brings this action against defendants Ray Mui, Joe Phan, Tony Liu and Everglory Logistics, Inc., alleging that Mui, Phan and Liu breached their February 19, 2002 employment agreements by: (1) "taking and/or using Confidential Information from Speedmark for the benefit of themselves personally and/or Everglory"; (2) "soliciting or otherwise enticing employees and an independent contractor to resign or otherwise cease working for Speedmark" and work for Everglory; and (3) "soliciting or otherwise enticing Speedmark customers to discontinue their contractual relationships with Speedmark." (Dkt. No. 17: Am. Compl. ¶¶ 48, 54, 60.) Speedmark also asserts claims for (1) "Tortious Interference with Contracts" (Compl. ¶¶ 62-66); (2) "Breach of Covenant of Good Faith and Fair Dealing" (Compl. ¶¶ 67-70); (3) "Unfair Competition" (Compl. ¶¶ 71-77); and (4) "Breach of Fiduciary Duty" (Compl. ¶¶ 78-89).
Presently before the Court is defendants' motion to dismiss the amended complaint pursuant to Fed.R.Civ.P. 12(b)(6) or, in the alternative, for summary judgment pursuant to Fed.R.Civ.P. 56. (Dkt. No. 19: Defs. Notice of Motion.)
For the reasons set forth below, defendants' motion is DENIED.
Speedmark is a "leading global provider of secure transportation services" with over "1,600 employees and operations throughout the United States, Europe, and Asia." (Dkt. No. 17: Am. Compl. ¶ 8.) Speedmark is incorporated in New York, its headquarters are in California and it has offices in New York City, Boston, Chicago, Seattle, Los Angeles and Dallas. (Am. Compl. ¶ 1.)
Defendants Mui, Phan and Liu each were longtime Speedmark employees. (Am.Compl. ¶¶ 2-4, 9-12, 21-22.) Mui, a Massachusetts resident, worked at Speedmark "for over fifteen years" and was the "Assistant General Manager of Speedmark's East Boston Office." (Am.Compl. ¶¶ 2, 10, 17, 21.) Mui was "directly involved with Speedmark's customers, contractors and agents," and "had access to all of Speedmark's pricing information." (Am.Compl. ¶ 17.) Phan, also a Massachusetts resident, worked for Speedmark for seventeen years and was the "General Manager of Speedmark's East Coast operations." (Am.Compl. ¶¶ 3, 11, 18.) Like Mui, Phan was "directly involved with Speedmark's customers," contractors and agents, and "had access to all of Speedmark's confidential pricing information." (Am. Compl. ¶ 18.) Although Phan was based at Speedmark's East Boston office, he "frequently worked in, and stayed in New York." (Am. Compl. ¶¶ 3, 18.)
Liu was the General Manager of Speedmark's Boston Office from March 1, 1988 until October 1, 1997. (Am. Compl. ¶ 12.) On October 1, 1997, Liu was promoted to "East Coast Regional Manager," oversaw the Boston and New York offices, and was based in Speedmark's Jamaica, New York office. (Am. Compl. ¶ 12.) On May 1, 2002, Liu "was transferred to Speedmark's
On February 19, 2002, Mui, Phan and Liu each signed employment agreements with Speedmark promising not to: (1) "disclose or use any Confidential Information for the profit of any other party than Speedmark" during or after the termination of employment;
In August 2010, while still employed at Speedmark, "Mui and Phan, with participation and encouragement of Liu," created Everglory Logistics, an international freight forwarder that would compete directly with Speedmark. (Am. Compl. ¶¶ 24-27, 29.) Mui and Phan asked Jay Breda of Liteship International LLC, a Speedmark customer and agent, to help Everglory acquire the licenses necessary to begin operations. (Am. Compl. ¶ 28.) Mui and Phan told Breda "that they would withhold Speedmark's business from Liteship if Breda refused to assist them in setting up Everglory to compete against Speedmark." (Am. Compl. ¶ 28.) Breda acquiesced and Mui and Phan named him a director of Everglory. (Am. Compl. ¶ 28.) Everglory began doing business sometime before November 26, 2010. (Am. Compl. ¶ 28.)
On January 7, 2011, Liu resigned his position at Speedmark's Shanghai joint venture. (Am. Compl. ¶¶ 4, 22.) Shanghai General Manager Kevin Huang, Shanghai Ocean Freight Manager Ke-Lin Lai and Shanghai Customer Service Representatives Hai-Qin Wu and Wen-Jing Leng resigned the same day. (Am. Compl. ¶¶ 30-33.)
On January 10, 2011, Mui and Phan resigned their positions at Speedmark's East Boston office. (Am. Compl. ¶¶ 2-3.) Shortly thereafter, several other Speedmark East Boston employees, including
Following Mui and Phan's resignation from Speedmark, Phan and Mui solicited business from long-time Speedmark customers J.F. Moran Co. and F.A.F. (Am. Compl. ¶¶ 39-40.)
On February 1, 2011, Speedmark commenced this suit seeking, inter alia, temporary and permanent injunctive relief barring defendants' continued solicitation of Speedmark employees and customers. (See Dkt. No. 1: Compl.)
The legal standards governing a motion to dismiss are well known and will not be set forth herein. See, e.g., Maniolos v. United States, 741 F.Supp.2d 555, 559-60 (S.D.N.Y.2010) (Peck, M.J.) (& cases cited therein); Bison Capital Corp. v. ATP Oil & Gas Corp., 10 Civ. 0714, 2010 WL 2697121 at *4-6 (S.D.N.Y. June 24, 2010) (Peck, M.J.), report & rec. adopted, 2010 WL 3733927 (S.D.N.Y. Sept. 16, 2010).
Defendants broadly assert that each of Speedmark's claims must be dismissed because the amended complaint does not meet the Iqbal-Twombly "plausibility" standard required by Fed.R.Civ.P. 8(a)(2). (Dkt. No. 20: Defs. Br. at 3-7; Dkt. No. 35: Defs. Reply Br. at 1-5.) The Court disagrees.
Speedmark alleges that Mui, Phan and Liu entered into employment contracts whereby they agreed not to solicit Speedmark employees for a period of twelve months following the termination of their employment. (See pages 441-42 above.) Speedmark also alleges that nine Speedmark employees from the Shanghai and Boston offices resigned within days of Mui, Phan and Liu's resigning from Speedmark and launching a competing business. (See pages 442-43 & n. 3 above.) Further, on information and belief, Speedmark alleges that Mui, Phan and Liu solicited these employees to leave Speedmark for Everglory. (See pages 442-43 & n. 3 above.) Such facts support a plausible claim that Mui, Phan and Liu violated the terms of their employment contracts by soliciting for Everglory former Speedmark employees with whom they had worked. The complaint also names two Speedmark customers that Mui and Phan solicited on behalf of Everglory. (See pages 442-43 above.) Although the complaint neglects to state how Mui and Phan contacted those clients, or whether Everglory ultimately was successful in stealing business from Speedmark, those facts are not necessary to state a claim; the amended complaint's factual allegations are sufficient at this stage to support a plausible claim that Mui and Phan solicited business from Speedmark customers in violation of their employment contracts. See, e.g., AllGood Entm't, Inc. v. Dileo Entm't & Touring, Inc., 726 F.Supp.2d 307, 320 (S.D.N.Y. 2010) (Although allegation that defendant "`disclos[ed] information prepared and/or provided by [plaintiff] to third-parties' ... and breached noncircumvention and noncompete terms .... is certainly not the most detailed or clear pleading[,] ... Plaintiffs have sufficiently alleged enough facts to state a breach of contract cause of action."); Penrose Computer Marketgroup, Inc. v. Camin, 682 F.Supp.2d 202,
Defendants also allege that Massachusetts substantive law applies to the February 19, 2002 employment agreements and that, under Massachusetts law, the agreements are void. (See Defs. Br. at 7-8, 19-23; Defs. Reply Br. at 6-8.) Such a choice-of-law determination is premature on this motion to dismiss, since the record lacks facts necessary to conduct the context-specific "center of gravity" or "grouping of contacts" analysis required by New York's choice-of-law principles.
Finally, because Speedmark's remaining causes of action closely track the breach of contract claims and are not likely to expand the scope of discovery, it makes sense to allow all of Speedmark's claims to proceed at this stage and revisit them after discovery via a summary judgment motion. See, e.g., William A. Gross Constr. Associates, Inc. v. Am. Mfrs. Mutual Ins. Co., 600 F.Supp.2d 587, 590 (S.D.N.Y.2009) (Peck, M.J.) (citing cases); Kermanshah v. Kermanshah, 580 F.Supp.2d 247, 268 (S.D.N.Y.2008) (Peck, M.J.) (denying defendants' motion to dismiss
For the reasons set forth above, defendants' motion to dismiss or for summary judgment (Dkt. No. 19) is DENIED.
SO ORDERED.