CC FORD GROUP, LLC v. JOHNSON
3:22-cv-04143
| D.N.J. | Jun 30, 2025Background
- Plaintiff, CC Ford Group West, LLC (CCFW), is a healthcare communications firm that alleges former employees (Johnson, Bicking, Weiler, Ornelas-Kuh) and a client executive (Manning at PharmaEssentia USA Corp. – PEC) orchestrated a scheme to misappropriate confidential business information and client relationships.
- Plaintiff claims Johnson and Manning conspired to form a competing entity, Project Velocity Inc. (PVI), while Johnson and others were still employed or consulting for CCFW, in violation of restrictive covenants and confidentiality agreements.
- PVI allegedly received millions of dollars in business diverted from CCFW's client PEC, using proprietary information and involvement of other CCFW employees.
- The suit names multiple causes of action, including RICO, trade secret misappropriation, computer fraud, breach of contract, tortious interference, and related state law claims against the various defendants.
- Defendants filed motions to dismiss under Rules 12(b)(5) (service) and 12(b)(6) (failure to state a claim).
- The court decided the motions primarily on the pleadings, addressing both sufficiency of service and adequacy of each substantive claim.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Service of process on PEC Defendants | Waiver of service bars dismissal | Late service violates order, warrants dismissal | Denied—waiver forecloses dismissal |
| Group pleading adequacy | Claims are specifically pled | Complaint is improperly group pled | Denied—complaint not fatally group pled |
| RICO claims (predicate acts, enterprise) | Two predicate acts and structure alleged | No predicate acts by PEC/Manning; no enterprise or fraud details | Dismissed—predicate acts/enterprise not pled |
| Trade secret misappropriation (DTSA/NJTSA) | Identifies specific trade secrets confidential info, alleges misappropriation | No plausible allegation of PEC/Manning involvement or knowledge | PVI Defendants: Survive. PEC Defendants: Dismissed |
| Computer fraud (CFAA/CROA) | Unlawful access and deletion of files, damages alleged | No improper access; no $5000 loss; claims time-barred | CFAA dismissed; CROA survives as to Johnson |
| Breach of contract (restrictive covenants) | Each defendant violated specific written agreements | Agreements expired, unenforceable, or not violated | Survives as to Johnson, Bicking, and Weiler |
| Breach of fiduciary duty | Defendants owed duties of loyalty and honesty | Johnson not bound; conduct proper competition | Survives as to Johnson, Bicking, and Weiler |
| Tortious interference | Loss of client and employee contracts by defendants' intentional acts | No awareness or intentional inducement by PEC/Manning | Dismissed—no specific knowledge alleged |
| Conversion | Unlawful withholding of tangible/intangible property | No tangible property, no claim | Dismissed—no basis for conversion |
| Unfair competition and unjust enrichment | Defendants benefited from misappropriation and deception | No plausibly alleged unfair conduct or enrichment | Dismissed as duplicative/unsupported |
Key Cases Cited
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (2007) (pleading standard for plausibility of claim)
- Ashcroft v. Iqbal, 556 U.S. 662 (2009) (facial plausibility and inference requirements)
- Omni Cap. Int’l, Ltd. v. Rudolf Wolff & Co., 484 U.S. 97 (1987) (requirement of proper service for jurisdiction)
- McKelvey v. Pierce, 800 A.2d 840 (N.J. 2002) (defining fiduciary duty relationship)
- Printing Mart-Morristown v. Sharp Elecs. Corp., 563 A.2d 31 (N.J. 1989) (elements of tortious interference under NJ law)
- Frederico v. Home Depot, 507 F.3d 188 (3d Cir. 2007) (breach of contract elements in New Jersey)
- Sedima, S.P.R.L. v. Imrex Co., 473 U.S. 479 (1985) (civil RICO requirements and damages)
- CollegeSource, Inc. v. AcademyOne, Inc., [citation="597 F. App'x 116"] (3d Cir. 2015) (CFAA requires action without authorization)
- Oakwood Lab’ys LLC v. Thanoo, 999 F.3d 892 (3d Cir. 2021) (trade secret misappropriation elements under DTSA/NJTSA)