ABOVE AND BEYOND - BUSINESS TOOLS AND SERVICES FOR ENTREPRENEURS, INC. v. TRUMBO
3:21-cv-03042
D.N.J.May 26, 2022Background
- Above and Beyond hired David Trumbo in January 2018; Trumbo signed an employment agreement containing confidentiality and non‑solicitation covenants (1 year for customers, 2 years for employees, 2.5 years for merchants, 3 years for use of confidential information).
- Trumbo left Above and Beyond in July 2020 and began working for competitor PayCompass; the complaint alleges he solicited customers, merchants, and employees (including Pretty Nails & Spa) and transferred merchants without authorization.
- Above and Beyond served Trumbo April 14, 2021; Trumbo did not respond, the clerk entered default on May 26, 2021, and Above and Beyond moved for partial default judgment seeking a permanent injunction (not yet seeking monetary damages).
- The court treated well‑pleaded facts as true for the default‑judgment analysis and evaluated service, personal jurisdiction, sufficiency of the claim, and appropriateness of injunctive relief.
- The court found service proper, exercised personal jurisdiction based on Trumbo’s forum‑selection clause in the employment agreement, concluded the complaint stated a legitimate cause of action, and weighed the factors supporting default judgment.
- The court denied injunctions as to customer, employee, and merchant solicitation (customers covenant expired; monetary damages deemed adequate for employees/merchants) but granted a three‑year injunction (through July 2023) barring Trumbo from using Above and Beyond’s defined Confidential Information.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was service proper such that default judgment may be entered? | Service was effected by hand delivery; affidavit of service proves personal delivery. | No response / no challenge. | Service was proper. |
| May the court exercise personal jurisdiction? | Trumbo consented to New Jersey jurisdiction via employment agreement forum‑selection clause. | No response / no challenge. | Court has personal jurisdiction; forum clause is valid and enforceable. |
| Do the complaint’s allegations establish a legitimate cause of action (breach and misuse of confidential information)? | Complaint pleads access to confidential information and specific solicitation/poaching (e.g., Pretty Nails & Spa). | No response / no defense asserted. | Complaint states a legitimate cause of action; allegations accepted on default. |
| Is a permanent injunction appropriate and what scope/timing is proper? | Seeks injunctive enforcement of all covenants (1 yr customers, 2 yrs employees, 2.5 yrs merchants, 3 yrs confidential info). | No response; employment agreement included a stipulation about inadequacy of damages (not credited). | Denied injunctive relief as to customer (expired), employee and merchant solicitation (monetary damages adequate; plaintiff may seek damages). Granted a narrowly tailored 3‑year injunction against using Confidential Information (through July 2023). |
Key Cases Cited
- Hritz v. Woma Corp., 732 F.2d 1178 (3d Cir. 1984) (default‑judgment entry is discretionary).
- Anchorage Assoc. v. Virgin Islands Bd. of Tax Rev., 922 F.2d 168 (3d Cir. 1990) (procedural standards for default judgments).
- La. Counseling & Family Servs., Inc. v. Makrygialos, LLC, 543 F. Supp. 2d 359 (D.N.J. 2008) (default judgment requirements and service).
- Comdyne I, Inc. v. Corbin, 908 F.2d 1142 (3d Cir. 1990) (treatment of allegations on default).
- DIRECTV, Inc. v. Pepe, 431 F.3d 162 (3d Cir. 2005) (accept well‑pleaded facts as true for default proceedings, except damages).
- Burger King Corp. v. Rudzewicz, 471 U.S. 462 (1985) (forum‑selection clauses and due process).
- eBay Inc. v. MercExchange, L.L.C., 547 U.S. 388 (2006) (four‑factor test for permanent injunctions).
- Frank's GMC Truck Ctr., Inc. v. Gen. Motors Corp., 847 F.2d 100 (3d Cir. 1988) (availability of monetary damages undermines claim of irreparable harm).
