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Echo Global Logistics, Inc. v. Liberty Multi-Modal, LLC

United States District Court, D. Oregon, Portland Division

February 14, 2019

ECHO GLOBAL LOGISTICS, INC., a Delaware corporation, Plaintiff,
v.
LIBERTY MULTI-MODAL, LLC, et al., Defendants.

          James M. Barrett, Elizabeth A. Falcone, Ogletree, Deakins, Nash, Smoak & Stewart, P.C., Attorneys for Plaintiff.

          Timothy J. Coleman, [1] Elizabeth A. Semler, Sussman Shank LLP, Kimberlee M. Petri Volm, Attorneys for Defendants.

          STIPULATED PERMANENT INJUNCTION

          HONORABLE MARCO A. HERNANDEZ JUDGE.

         WHEREAS, on October 15, 2018, Plaintiff Echo Global Logistics, Inc. (“Echo”) filed the above-captioned action against Defendants Liberty Multi-Modal, LLC (“LMM”); Thomas Arant (“Arant”); Clay Russell Hayden (“Hayden”); and Brandon Scott (“Scott”), asserting claims of breach of contract, breach of fiduciary duty; tortious interference, promissory estoppel, unjust enrichment, and injunctive relief (hereafter, the “Claims”);

         WHEREAS, on November 27, 2018, the Court entered a Stipulated Temporary Injunction (Dkt. 36) against LMM, Arant, Hayden, and Scott (collectively, the “Defendants”); WHEREAS, Echo and the LMM Parties (collectively, the “Parties”) now wish to stipulate and agree to the issuance of a permanent injunction as set forth herein, and agree to request that the Court so order;

         THEREFORE, the Parties stipulate and agree as follows:

         1. Scope of Application. This Stipulated Permanent Injunction applies to each of the Defendants individually, together with their respective employees (including but not limited to Brandon Cisewski and Race Hebrard), agents and assigns, and any persons or entities acting in concert or participation with any of them who receive actual notice of this Stipulated Permanent Injunction after its entry by the Court.

         2. Duration. This Stipulated Permanent Injunction shall remain in effect until it expires by its terms, below.

         3. Restricted Activities - All Defendants. Defendants, and each of them, shall refrain from the following:

(a) Confidentiality. Defendants shall not directly or indirectly use or disclose Echo's “Confidential Information, ” defined as all confidential competitive pricing, operational, sourcing, marketing, proprietary, trade secrets and other information relating or belonging to Echo or its affiliates (whether or not in writing), including without limitation all such information disclosed to or obtained by an Echo employee during the employee's employment, and further including without limitation: patented or unpatented inventions, discoveries and improvements; marketing, manufacturing, organizational, operating and business plans and strategies; research and development; information-gathering techniques and methods; policies and manuals; sales forecasts; proprietary software; personnel information (including without limitation performance, medical and other private information); nonpublic financial information; current and prospective customer and carrier lists and nonpublic customer information; weekly loading lists; and information concerning planned or pending acquisitions, investments, divestitures, and purchases of major equipment or property. Confidential Information does not include information that lawfully is or becomes publicly known outside of Echo and its affiliates other than through a violation of law, contract, or other obligation.
(b) Customer Protections. Except as provided in Paragraph 3(d), below, Defendants shall not directly or indirectly solicit or transact business with any of the 336 Echo customers or prospective customers identified in the confidential Appendix B to the parties' Settlement Agreement and Mutual Release of Claims (“the No-Call List”).
(c) Employee Protections. Defendants shall not directly or indirectly induce, solicit, or attempt to persuade any employee, independent contractor or other agent of Echo or any of its affiliates (collectively, “Personnel”) to terminate his, her, or its employment or other relationship with Echo or any such affiliate, or recruit, solicit, or hire any of the Personnel for any employment, contractor, consulting or other services relationship for or with any other person; provided, however, that the prohibition on hiring Personnel in this Paragraph 3(c) does not apply with respect to Personnel who reside and work in the State of California, so long as (i) no prohibition against inducement, recruitment, or solicitation is violated; and (ii) Defendants do not directly or indirectly solicit or transact business with any customer actively serviced by the former California Personnel during his/her last 18 months of employment at Echo. Nothing in in this provision is intended to supersede or replace any contractual or fiduciary duty California Personnel owe to Echo.
(d) Exception for LMM Current Customers. Notwithstanding the restrictions in Paragraphs 3(a) and 3(b), above, and so long as Defendants have made all payments required under the Parties' Settlement Agreement and Mutual Release of Claims, Defendants shall be not be prohibited from continuing to transact business with the 25 customers identified in the confidential Appendix C to the parties' Settlement Agreement and Mutual Release of Claims (the “Released Customer List”).
(e) Expiration of Restrictions. The restrictions in Paragraphs 3(b) shall expire January 27, 2021, and the restrictions in Paragraph 3(c) shall expire May 27, 2020. The confidentiality restriction in Paragraph 3(a) shall remain in effect indefinitely so long as ...

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