Associated Professional Educators of Louisiana v. E D U 20/20 L L C
W.D. La.9/30/2024
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UNITED STATES DISTRICT COURT WESTERN DISTRICT OF LOUISIANA ALEXANDRIA DIVISION ASSOCIATED PROFESSIONAL CASE NO. 1:22-CV-05720 EDUCATORS OF LOUISIANA VERSUS JUDGE TERRY A. DOUGHTY EDU20/20 LLC ET AL MAGISTRATE JUDGE PEREZ-MONTES MEMORANDUM RULING Before the Court are five motions for partial summary judgment. The plaintiff, Associated Professional Educators of Louisiana (âA+PELâ) filed the first (R. Doc. 79), second (R. Doc. 82), and third (R. Doc. 84). The defendants, EDU20/20, Courtney Dumas (âDumasâ), and Miranda Britt (âBrittâ) (collectively, âDefendantsâ) filed the fourth (R. Doc. 85) and fifth (R. Doc. 86). Each motion is opposed. After careful consideration of the partiesâ memoranda and the applicable law, the first, second, and third Motions, all filed by A+PEL, are DENIED, and the fourth and fifth Motions, both filed by Defendants, are GRANTED. I. BACKGROUND This case stems from a dispute wherein Defendants allegedly misappropriated the propertyâintellectual or otherwiseâof A+PEL, for EDU20/20âs benefit.1 Both A+PEL and EDU20/20 provide training and programming to teachers in Louisiana.2 Britt is a part-owner of EDU20/20, and an ex-employee of A+PEL.3 The alleged acts of Brittâwhile still employed by A+PELâgive rise to the lionâs share of the claims currently before the Court.4 As it stands today, 1 R. Doc. 41 at 12â28. 2 Id. at 5â6, 14. 3 Id. at 12â15. 4 Id. at 12â28. A+PEL accuses Defendants of misappropriating its trade secrets in violation of the Defend Trade Secrets Act (âDTSAâ)5 and the Louisiana Uniform Trade Secrets Act (âLUTSAâ)6; impermissibly soliciting A+PELâs customers in violation of the Louisiana Unfair Trade Practices Act (âLUTPAâ)7; âunfair competitionâ and trademark infringement under the Lanham Act8; and civil conspiracy.9 Further, A+PEL asserts a claim for breach of fiduciary duty against Britt alone.10 A. The First Motion The first motion for partial summary judgment is on âliability onlyâ and seeks our adjudgment that (1) Britt breached her fiduciary duty to A+PEL and (2) that she violated LUTPA.11 Mainly, A+PEL contends that Britt diverted business opportunities to EDU20/20 while still employed by A+PEL.12 Further, A+PEL points to Brittâs alleged use of paid time off (âPTOâ) from A+PEL to instead promote EDU20/20, âlying to [the Executive Director of A+PEL],â and numerous other episodes of alleged unfaithfulness by Britt.13 By A+PELâs estimation, Brittâs acts were per se violative of a âbright-line ruleâ that â[a]n employee cannot compete with her employer while she is still employed.â14 Accordingly, A+PEL contends that no genuine issues of material fact exist as to Brittâs liability as an alleged fiduciary, and Defendantsâ liability under LUTPA.15 Defendants filed an Opposition, challenging A+PELâs motion for a flurry of reasons.16 First, Defendants aver that Britt, as a mere employee, owed no fiduciary duty to A+PEL, and thus 5 Id. at 28â31 (citing 18 U.S.C. § 1836). 6 Id. at 31â33 (citing La. R.S. 51:1431, et seq.). 7 Id. at 34â35 (citing La. R.S. 51:1401, et seq.). 8 Id. at 37 (citing 15 U.S.C. § 1125(a)). 9 Id. at 35â36 (citing La. Civ. Code art. 2324(A)). 10 Id. at 33â34. 11 R. Doc. 79 at 1. 12 R. Doc. 79-1 at 12-24. 13 Id. 14 Id. at 19. 15 Id. at 30. 16 R. Doc. 97. was incapable of such a breach.17 Second, Defendants point out that a finding of intent (requisite for breach of fiduciary duty claims) is broadly inappropriate at the summary judgment stage.18 Third, Defendants contend that the corporate opportunities that Britt allegedly usurped for EDU20/20 either were not usurped at all or were not A+PELâs in the first place.19 Fourth, Defendants aver that A+PEL consented to Brittâs simultaneous employment with EDU20/20.20 Fifth, Defendants assert that A+PEL has failed to show actual damages as required under LUTPA.21 And finally, Defendants allege that â[t]he [b]ulkâ of A+PELâs LUTPA claims are perempted.22 Accordingly, Defendants request that the motion be denied.23 A+PEL filed a Reply.24 A+PEL argues that it need not show actual damages if it is only seeking summary judgment on liability.25 A+PEL additionally challenges Defendantsâ characterization of the duties owed to an employer, and asserts that no dispute exists as to whether Britt breached these duties.26 A+PEL closes by denying any dispute with regard to Brittâs alleged intent; denying A+PELâs knowledge of Brittâs concurrent employment with EDU20/20; and invoking contra non valentum with regard to the timeliness of its LUTPA claims.27 B. The Second Motion The second motion for partial summary judgment seeks our adjudgment that Defendants violated the Lanham Act, both by unfairly competing with A+PEL, and by using A+PELâs logo.28 17 Id. at 9-11. 18 Id. at 11-12. 19 Id. at 12-20 20 Id. at 21-24. 21 Id. at 24-25. 22 Id. at 25. 23 Id. at 30. 24 R. Doc. 105. 25 Id. at 1â3. 26 Id. at 3â6. 27 Id. at 6â10. 28 R. Doc. 82-1 at 11â28. A+PEL contends that Brittâs unauthorized use of A+PELâs logo during a presentation (for EDU20/20) constituted trademark infringement by creating a likelihood of confusion, and causing actual confusion.29 In support of this claim, A+PEL namely relies on the declaration of its intended expertâTobias Wilhelm.30 Furthermore, and specifically in support of its derivative contention that people âactual[ly] confus[ed]â the marks of A+PEL and EDU20/20, A+PEL offers the declarations of Torrence Williams and Dr. Tia Neal.31 A+PEL concludes its motion by denying that Brittâs use of the A+PEL logo constituted fair use.32 Defendants filed an Opposition.33 Defendants contend that A+PEL hasnât a trademark in the first place; that even if A+PEL did have an otherwise-protectable trademark, it is fatally absent from interstate commerce; and that even if A+PEL had a protectable mark used in interstate commerce, no requisite likelihood of confusion exists.34 Additionally, Defendants poke holes in both the expertise and analysis of A+PELâs intended expert, Tobias Wilhelm, and contend that the two other declarants, Torrence Williams and Dr. Tia Neal, are both employed by A+PEL currently and thus incredible.35 Finally, Defendants reassert their âfair useâ defense, while pointing out that A+PEL did not address their other affirmative defenses in its Motion.36 A+PEL filed a Reply, challenging Defendantsâ conclusions regarding the A+PEL mark and its use in commerce.37 Thereafter, A+PEL runs through the likelihood of confusion once more, makes a pitstop at fair use, and ends with a graze on Defendantsâ other affirmative defenses.38 29 Id. at 22. 30 See R. Doc. 82-3. 31 R. Doc. 82-1 at 24â25. 32 Id. at 19â22. 33 R. Doc. 99. 34 Id. at 10â18. 35 Id. at 17â23. 36 Id. at 24â29. 37 Id. at 1â3. 38 Id. at 3â10. C. The Third Motion A+PELâs third and final39 motion for partial summary judgment seeks our adjudgment that Defendants violated DTSA and LUTSA.40 As the basis of its trade secrets claims, A+PEL asserts that Defendantsânamely Brittâstole its âMentor Teacherâ programming material to create their very own âMentor Teacherâ program at EDU20/20.41 Allegedly, Britt accomplished this heist by surreptitiously acquiring a Google account from West Baton Rouge Schools, and using said account to acquire A+PELâs files.42 Accordingly, A+PEL avers that no genuine dispute exists as to whether Defendants violated DTSA and LUTSA.43 And if that does not work, A+PEL asks us toâat the very leastâdismiss Defendantsâ request for attorneyâs fees under DTSA and LUTSA.44 Defendants oppose.45 Defendants contend first that any claim for trade secret misappropriation arising from the âMentor Teacherâ program does not exist in the operative Complaint, and that such a novel claim cannot be raised in this Motion.46 But even if the claim were properly before the Court, Defendants contend that A+PEL has no evidence to support it.47 According to Defendants, the âMentor Teacherâ materials are basically a repackaging of open- source content distributed by the Louisiana Department of Education, rendering them not a secret.48 Furthermore, Defendants point out that the âMentor Teacherâ programming is shared and shown to participants, who are not required to sign non-disclosure agreements or otherwise bound to keep the materials secret.49 Finally, Defendants challenge the commercial value that Britt or 39 Thank goodness. 40 R. Doc. 84 at 1. 41 R. Doc. 84-1 at 18â24. 42 Id. at 13â16. 43 Id. at 24. 44 Ibid. 45 R. Doc. 103. 46 Id. at 15â17. 47 Id. at 17â19. 48 Id. at 20â23. 49 Id. at 23â25. EDU20/20 could have derived from the âMentor Teacherâ materials, arguing that the content is âoutdatedâ and that EDU20/20 has never had a âMentor Teacherâ program or derived any income from its use of such materials.50 Accordingly, Defendants aver that A+PEL is unable to support its claims for trade secret misappropriation.51 A+PEL filed a Reply.52 Within, A+PEL promises that the âMentor Teacherâ program is actually a trade secret; and, furthermore, that the only reason why EDU20/20 does not have its very own âMentor Teacherâ program is because A+PEL sued.53 D. The Fourth Motion Now to Defendantsâ motions. The fourth motion for partial summary judgment seeks our dismissal of A+PELâs Lanham Act claims, or any claim brought under LUTPA arising from Defendantsâ use of the A+PEL logo.54 Defendants contend that A+PELâs evidence, namely the declaration of Tobias Wilhelm, is insufficient to support a Lanham Act claim.55 Furthermore, Defendants aver that A+PEL is unable to show actual damages, a supposed predicate for both Lanham Act and LUTPA claims.56 Accordingly, Defendants seek dismissal of these claims.57 A+PEL opposes, basically reiterating its Motion on this subject (R. Doc. 82) and reassuring the Court that Tobias Wilhelmâs declaration is credible.58 Defendants filed a Reply, serving mainly to buttress their evidentiary quibbles and point out that A+PELâs Opposition is insufficient to create a genuine issue of material fact.59 50 Id. at 25â29. 51 Id. at 29. 52 R. Doc. 108. 53 Id. at 5â8. 54 R. Doc. 85 at 1. 55 R. Doc. 85-1 at 8â13. 56 Id. at 13â15. 57 Id. at 16. 58 R. Doc. 93 at 1â33. 59 R. Doc. 98. E. The Fifth Motion The fifth motion for partial summary judgment seeks our dismissal of A+PELâs trade secrets claims, and any other claims premised on Defendantsâ use of A+PELâs allegedly confidential information.60 Defendantsâ Motion predictably mirrors their Opposition to A+PELâs Motion on this subject.61 Again, Defendants contend that A+PELâs information is neither valuable, nor concealed, and thus cannot give rise to a trade secret claim.62 Furthermore, Defendants note that A+PELâs customers are the school districts of Louisiana, meaning the A+PEL customer list is reproducible with common sense.63 Last, Defendants assert that A+PELâs materials were never used for the benefit of EDU20/20.64 Accordingly, Defendants seek dismissal of these claims. A+PEL opposes the Motion for the same reasons that it seeks summary judgment in its favor, except to additionally address the customer list, and that such a list is proprietary.65 Defendants filed a Reply to reassert its original evisceration of A+PELâs claims, and to reiterate the bombshell that Dumas (the proprietor of EDU20/20 who was never personally affiliated with A+PEL) created some of the slides that A+PEL now contends were stolen from it.66 Crazier still, these slides were allegedly used for A+PELâs benefit before Brittâs departure.67 II. LEGAL STANDARD Summary judgment is appropriate when the evidence shows âthat there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.â Fed. R. Civ. P. 56(a). âOnly disputes over facts that might affect the outcome of the suit under the 60 R. Doc. 86 at 1. 61 See R. Doc. 103. 62 R. Doc. 86 at 9â18. 63 Id. at 18â22. 64 Id. at 23â29. 65 Id. at 20â21. 66 R. Doc. 107. 67 Id. at 3â5. governing law will properly preclude the entry of summary judgment.â Hyatt v. Thomas, 843 F.3d 172, 177 (5th Cir. 2016) (quoting Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986)). âA dispute is genuine if the summary judgment evidence is such that a reasonable jury could return a verdict for the [non-movant].â Id. (internal quotations omitted). In evaluating a motion for summary judgment, the court âmay not make credibility determinations or weigh the evidenceâ and âmust resolve all ambiguities and draw all permissible inferences in favor of the non-moving party.â Total E&P USA Inc. v. Kerr-McGee Oil & Gas Corp., 719 F.3d 424, 434 (5th Cir. 2013) (internal citations omitted). â[A] party seeking summary judgment always bears the initial responsibility of informing the district court of the basis for its motion, and identifying those portions of âthe pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any,â which it believes demonstrate the absence of a genuine issue of material fact.â Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986) (quoting Anderson, 477 U.S. at 247). âThe moving party may meet its burden to demonstrate the absence of a genuine issue of material fact by pointing out that the record contains no support for the non-moving party's claim.â Stahl v. Novartis Pharm. Corp., 283 F.3d 254, 263 (5th Cir. 2002). Thereafter, if the non-movant is unable to identify anything in the record to support its claim, summary judgment is appropriate. Id. III. ANALYSIS A. Trademark Claims We begin with A+PELâs claims under the Lanham Act. 15 U.S.C. § 1125. âBecause [A+PELâs] claims of unfair competition and trademark infringement [âŠ] under Section 43(a) of the Lanham Act are one [and] the same, they need not be addressed as separate causes of action.â Tactica Int'l, Inc. v. Atl. Horizon Int'l, Inc., 154 F.Supp.2d 586, 597 n. 14 (S.D.N.Y. 2001). To prevail on a trademark infringement claim, a plaintiff âmust show (1) it possesses a legally protectable trademark and (2) Defendants use of this trademark creates a likelihood of confusion as to source, affiliation, or sponsorship.â Rex Real Est. I, L.P. v. Rex Real Est. Exch., Inc., 80 F.4th 607, 616 (Sth Cir. 2023) (cleaned up). We donât explore here whether A+PELâs mark is legally protectable, as A+PELâs claim plainly fails on the âlikelihood of confusionâ requirement. âLikelihood of confusion is synonymous with a probability of confusion, which is more than a mere possibility of confusion.â Bd. of Supervisors for Louisiana State Univ. Agric. & Mech. Coll. v. Smack Apparel Co., 550 F.3d 465, 478 (Sth Cir. 2008) (citation omitted). When assessing the likelihood of confusion, a court considers the following factors: â(1) the type of mark allegedly infringed, (2) the similarity between the two marks, (3) the similarity of the products or services, (4) the identity of the retail outlets and purchasers, (5) the identity of the advertising media used, (6) the defendant's intent, and (7) any evidence of actual confusion.â Jd. âCourts also consider (8) the degree of care exercised by potential purchasers.â Jd. âNo single factor is dispositive, and a finding of a likelihood of confusion need not be supported by a majority of the factors.â Id. The alleged infringement that A+PEL protests stems from its logoâs presence on this slide (and similar others) given at a presentation by Britt to educators: M j ran da Brit Romane S78 a. 08/02/24 Page ay PagelD â | Eduz0j20 dpel T= Sr Director of Partnerships == co ee > ASCENSION = SD) am hers} FPEESON sid = = ay ee PN 5 The Stem for Teacher 5 | f ot 7° ae / Px =f tap Brencemen' ie â| % , a7 Re. âĄâĄ see et Eli, TY R. Doc 85-6 at 2; see also R. Doc. 85-4 at 3; R. Doc. 85-9 at 4. This slide represents Brittâs biographical information, including the logos of her former and current personal and professional affiliations. It is similar in form to the biographical slides of her two co-presenters. See id. at 3, 4. Armed with this damning visual, we decline to reach new frontiers of absurdity and declare Brittâs resumĂ© violative of the Lanham Act. A+PELâs Lanham Act claim namely relies on the declaration of its intended expertâ Tobias Wilhelm. R. Doc. 82â3. Aside from being an overt puff piece, Wilhelmâs declaration fails to create a genuine issue of material fact regarding the likelihood of confusion.68 See id. For his determination on the âactual confusionâ factor specifically, he declares that âWitnesses have reported confusionâŠâ and not much else. Id. at 6. Worse still, the declarations of Torrence Williams and Dr. Tia Nealâno matter their current employerâdo not support a finding of likelihood of confusion either. See, e.g., Vais Arms, Inc. v. Vais, 383 F.3d 287, 293â94 (5th Cir. 2004) (holding that a nonmovant's âconclus[ory],â âvague, self-serving statementsâ were insufficient to preclude summary judgment); BMG Music v. Martinez, 74 F.3d 87, 91 (5th Cir. 1996) (holding that a nonmovant's âconclusory, self-serving statementâ was insufficient to preclude summary judgment); Clark v. Am.'s Favorite Chicken Co., 110 F.3d 295, 297 (5th Cir. 1997) (âUnsupported allegations or affidavit or deposition testimony setting forth ultimate or conclusory facts and conclusions of law are insufficient to defeat a motion for summary judgment.â); see also Kariuki, 709 F.3d at 505 (â â[S]elf-serving allegations are not the type of significant probative evidence required to defeat summary judgment.â ... [W]ithout more, a vague or conclusory affidavit is insufficient to create [a fact issue].â (first alteration in original) (quoting 68 The declarantâs ease with making legal conclusions gives the Court pause, as it is the Courtâs province to conclude whether the elements of trademark infringement have been met, not A+PELâs expert. See Tesoros Trading Co. v. Tesoros Misticos, Inc., 10 F. Supp. 3d 701, 714 n.4 (N.D. Tex. 2014). United States v. Lawrence, 276 F.3d 193, 197 (5th Cir. 2001))); DIRECTV, Inc. v. Budden, 420 F.3d 521, 531 (5th Cir. 2005) (â[Attempting] to create a fact issue ... by relying on a conclusory and self-serving affidavit is on unsteady ground.â). While it may have been âconfusingâ to two industry players (Williams and Dr. Neal) whether Britt was presenting on A+PELâs behalf or EDU20/20âs behalf, the mystery apparently did not stem from her use of A+PELâs mark on one biographical slide, but rather that the âactual[ly] confus[ed]â declarantsâ knew Britt was employed with A+PEL at that time. See R. Doc. 79-22 at 1â2. This plainly does not give rise to a claim under the Lanham Act, especially considering that because âthese persons are buying for professional and institutional purposes at a cost in the thousands of dollars, they are virtually certain to be informed, deliberative buyers.â Oreck Corp. v. U.S. Floor Sys., Inc., 803 F.2d 166, 173 (5th Cir. 1986). With these âconsumerâ declarations insufficient, and lacking a consumer survey, A+PEL has failed to create a dispute as to actual confusion. Scott Fetzer Co. v. House of Vacuums Inc., 381 F.3d 477, 486â87 (5th Cir. 2004). We end with the reality that â[p]rominent and pervasive use of a mark will suggest affiliation, but mere reference to a marked product will notâ; accordingly, the evidence in the record makes clear that the trademark claims against Defendants must be dismissed. Id. at 485. B. Trade Secret Claims A+PEL also makes claims under the Defend Trade Secrets Act (âDTSAâ) and Louisiana Uniform Trade Secrets Act, (âLUTSAâ). 8 U.S.C. § 1836(b)(1); LA. REV. STAT. § 51:1431, et seq. Both statutes require âthe existence of a trade secretâ and the âmisappropriation of the trade secret by another.â See RealPage, Inc. v. Enter. Risk Control, LLC, No. 16-737, 2017 WL 3313729, at *9 (E.D. Tex. Aug. 3, 2017) (elements of a DTSA claim); Reingold v. Swiftships, Inc., 126 F.3d 645, 648 (5th Cir. 1997) (elements of a LUTSA claim). Because the information contested here is neither secret, nor misappropriated, A+PELâs claims under both statutes fail. There are two main categories of trade secrets disputed hereâinstructional materials and client lists. See R. Doc. 86-1 at 18â23. We address the instructional materials first. It is undisputed that A+PEL did not demand confidentiality from participants in its training sessions where the instructional materials were used. See R. Doc. 86-5. It is further undisputed that these participants were not, and never were, bound by a non-disclosure agreement to keep these materials confidential. See id. It is well-settled that â[i]f an individual discloses his trade secret to others who are under no obligation to protect the confidentiality of the information, or otherwise publicly discloses the secret, his property right is extinguished.â Ruckelshaus v. Monsanto Co., 467 U.S. 986, 1002 (1984). A+PELâs claim fails on that issue alone. With confidentiality now debunked, these materials arenât apt for a (more obvious) copyright claim either, given that they areâin large partâthe original works of the Louisiana Department of Education, and that any damages flowing from their use appear fatally dubious. See Feist Publications, Inc. v. Rural Tel. Serv. Co., 499 U.S. 340, 357 (1991) (â[A] compilation, like any other work, is copyrightable only if it satisfies the originality requirement (âan original work of authorshipâ)â); R. Doc. 95 at 14â15. Accordingly, Defendants cannot be broadly answerable for their useânot ever. Now for the customer list. âTo qualify as a trade secret, the information cannot be generally known by others in the same business nor readily ascertainable by an independent investigation. Thus, a customer list of readily ascertainable names and addresses will not be protected as a trade secret.â Zoecon Indus., a Div. of Zoecon Corp. v. Am. Stockman Tag Co., 713 F.2d 1174 (5th Cir. 1983) (internal citations omitted). A+PELâs customers are the school districts of Louisianaânot an especially unascertainable crowd. See R. Doc. 82-1 at 8. And their contracts are matters of public record.69 Despite A+PELâs contentions, it appears that any possible advantage Britt had in soliciting A+PELâs clients flowed from her knowledge and relationships commensurate with being âsecond- in-commandâ at A+PEL, and not some list. See R. Doc. 82-1 at 10 (explaining that Britt âdevelop[ed] relationships and contacts withââand had âextraordinary access toââA+PELâs clients, so much so that she was, at times, the âface of A+PEL.â). This does not give rise to a trade secrets claim. See Pure Air Daigle, LLC v. Stagg, No. CV 6:16-1322, 2017 WL 11534244 (W.D. La. Jan. 11, 2017) (â[A] former employee is allowed to rely on his memory or general knowledge and skill gained in his former employment to compete with his former employer.â). Accordingly, the record shows that no dispute of fact exists as to A+PELâs DTSA or LUTSA claims lacking the âsecretâ predicate. A+PELâs LUTSA claim specifically is further apt for dismissal, as recovery under LUTSA requires a plaintiff to show âthe extent of the damages as a matter of just and reasonable inferenceâŠâ Brand Servs., L.L.C. v. Irex Corp., 909 F.3d 151, 157 (5th Cir. 2018) (cleaned up). Even under the lax standard for trade secret damages, the Court finds that A+PELâs evidence does not muster a âreasonable inference.â Id. Accordingly, summary judgment is doubly appropriate as to A+PELâs LUTSA claims. 69 Pursuant to LSAâR.S. 44:1(A)(2)(a), âpublic recordsâ encompass, âexcept as otherwise provided in [the Public Records Law] or the Constitution of Louisiana,â the following: All books, records, writings, accounts, letters and letter books, maps, drawings, photographs, cards, tapes, recordings, memoranda, and papers, and all copies, duplicates, photographs, including microfilm, or other reproductions thereof, or any other documentary materials, regardless of physical form or characteristics, including information contained in electronic data processing equipment, having been used, being in use, or prepared, possessed, or retained for use in the conduct, transaction, or performance of any business, transaction, work, duty, or function which was conducted, transacted, or performed by or under the authority of the constitution or laws of this state, or by or under the authority of any ordinance, regulation, mandate, or order of any public body or concerning the receipt or payment of any money received or paid by or under the authority of the constitution or the laws of this state.... C. Remaining State Law Claims A federal court that has original jurisdiction may exercise âsupplemental jurisdiction over all other claims that are so related to claims in the actionâ that âthey form part of the same case or controversy.â 28 U.S.C. § 1367(a). However, â[d]istrict courts enjoy wide discretion in determining whether to retain supplemental jurisdiction over a state claim once all federal claims are dismissed,â and generally, âa court should decline to exercise jurisdiction over remaining state-law claims when all federal-law claims are eliminated before trial.â Heggemeier v. Caldwell Cty., Tex., 826 F.3d 861, 872 (5th Cir. 2016) (cleaned up). Here, with the federal claims and LUTSA claim dispensed of, we decline to exercise our supplemental jurisdiction over the remaining state law claims. See 28 U.S.C. § 1367(c) (âThe district courts may decline to exercise supplemental jurisdiction over a claim under subsection (a) if. . .(3) the district court has dismissed all claims over which it has original jurisdictionâ). Specifically, it appears that Defendants never adequately moved for summary judgment on A+PELâs LUTPA and breach of fiduciary duty claims arising out of Brittâs alleged diversion of customers while still in the employ of A+PEL. Accordingly, we decline supplemental jurisdiction over those claims and dismiss them without prejudice, for A+PEL to re-urge in state court if it so chooses. We do, however, grant the remainder of Defendantsâ respective motions and dismiss with prejudice any of A+PELâs state law claims stemming from Defendantsâ use of either the A+PEL logo, or A+PELâs confidential information. R. Doc. 85-1 at 15; R. Doc. 86-1 at 29. A+PEL has failed to show any evidence to support a finding of damages with regard to the logo usage or the materials usage, which is fatal to both a LUTPA or breach of fiduciary duty claim. See Camowraps, LLC v. Quantum Digital Ventures LLC, 74 F. Supp. 3d 730, 742 (E.D. La. 2015) (cleaned up) (âThe [] absence of any evidence of quantified actual losses is fatal to any recovery of actual damages under LUTPA.â); see also, F.D.I.C. v. Barton, 233 F.3d 859, 864 (5th Cir. 2000) (same for breach of fiduciary duty). IV. CONCLUSION For the reasons set forth above, IT IS ORDERED that A+PELâs first Motion for partial summary judgment (R. Doc. 79) is DENIED. IT IS FURTHER ORDERED that A+PELâs second Motion for partial summary judgment (R. Doc. 82) is DENIED. IT IS FURTHER ORDERED that A+PELâs third Motion for partial summary judgment (R. Doc. 84) is DENIED. IT IS FURTHER ORDERED that Defendantsâ first Motion for partial summary judgment (R. Doc. 85) is GRANTED. Accordingly, A+PELâs Lanham Act, LUTPA,70 and breach of fiduciary duty71 claims are DISMISSED WITH PREJUDICE. IT IS FURTHER ORDERED that Defendantsâ second Motion for partial summary judgment (R. Doc. 86) is GRANTED. Accordingly, A+PELâs DTSA, LUTSA, LUTPA,72 and breach of fiduciary duty73 claims are DISMISSED WITH PREJUDICE. IT IS FURTHER ORDERED that Defendantsâ remaining LUTPA,74 breach of fiduciary duty,75 and conspiracy76 claims are DISMISSED without prejudice as we decline jurisdiction. 70 This claim is limited to any LUTPA claim arising from Defendantsâ use of A+PELâs logo. 71 This claim is limited to any breach of fiduciary duty claim arising from Brittâs use of A+PELâs logo. 72 This claim is limited to any LUTPA claim arising from Defendantsâ use of A+PELâs âconfidentialâ information. 73 This claim is limited to any breach of fiduciary duty claim arising from Brittâs use of A+PELâs âconfidentialâ information. 74 This claim is limited to any LUTPA claim arising from Brittâs alleged diversion of customers from A+PEL. 75 This claim is limited to any breach of fiduciary duty claim arising from Brittâs alleged diversion of customers from A+PEL. 76 This claim is limited to conspiracy to unlawfully divert customers from A+PEL. MONROE, LOUISIANA, this Ist day of October, 2024. Terry A. Doug nued States District Judg
Case Information
- Court
- W.D. La.
- Decision Date
- September 30, 2024
- Status
- Precedential