Life Time Fitness, Inc. v. DeCelles
854 F. Supp. 2d 690
D. Minnesota2012Background
- LTF is a Minnesota corporation with nationwide clubs, including five in Arizona, offering personal training services.
- DeCelles was employed as a personal trainer at LTF Tempe, responsible for member recruitment, program design, and maintaining health and contact data.
- DeCelles signed a noncompete and CBPI protection agreement restricting use of confidential information and restricting competition after employment.
- DeCelles left LTF in Nov 2011 and allegedly took 30-40 LTF client files to his new employer, Arizona Spine and Disc, then joined Pro Fitness in Jan 2012.
- PF allegedly contacted LTF members and solicited business; some LTF members canceled memberships or sought refunds after DeCelles’ departure; LTF alleges missing original member contracts.
- LTF moved for a TRO, the court held a hearing, and issues this order granting TRO in part.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does Minnesota forum selection clause render jurisdiction proper? | LTF argues clause consents to Minnesota courts for venue/jurisdiction. | DeCelles contests, but does not challenge forum clause as improper. | Jurisdiction proper; forum clause valid and enforceable. |
| Should a TRO be issued under Dataphase factors given Minnesota law? | LTF shows irreparable harm, balance of harms favorable, likelihood of success on a claim, and public interest favoring enforcement. | DeCelles contends the balance harms and likelihood factors do not warrant relief. | TRO warranted after balancing four factors. |
| Is the noncompete reasonable and likely to be enforced against DeCelles? | Restricts time, geographic scope, and is necessary to protect goodwill and confidential information. | Noncompete overly broad or unnecessary. | Covenant deemed reasonable; likely to succeed on breach of contract. |
| Does public interest support issuing a TRO in this context? | Public interest supports enforcing contractual restraints and protecting confidential information. | Public interest in competition and restraint restrictions must be weighed. | Public interest favors LTF; TRO appropriate. |
Key Cases Cited
- Dominium Austin Partners, L.L.C. v. Emerson, 248 F.3d 720 (8th Cir. 2001) (consent-based personal jurisdiction via forum selection clause)
- M.B. Rests., Inc. v. CKE Rests., Inc., 183 F.3d 750 (8th Cir. 1999) (forum selection clauses are prima facie valid)
- Bel Canto Design, Ltd. v. MSS HiFi, 813 F. Supp. 2d 1119 (D. Minn. 2011) (transferring venue after TRO, discussion of venue propriety)
- Mo. Housing Dev. Comm’n v. Brice, 919 F.2d 1306 (8th Cir. 1990) (permits consideration of multiple proper venues)
- Rosewood Mortg. Corp. v. Hefty, 383 N.W.2d 456 (Minn. Ct. App. 1986) (irreparable harm from professional employee's influence on clients)
- S & M Constructors, Inc. v. Foley Co., 959 F.2d 97 (8th Cir. 1992) (DATAPHASE factors guidance for TROs)
- Medtronic, Inc. v. Advanced Bionics Corp., 630 N.W.2d 438 (Minn. Ct. App. 2001) (reasonableness of noncompete considering interests)
- Overholt Crop Ins. Serv. Co. v. Bredeson, 437 N.W.2d 698 (Minn. Ct. App. 1989) (geographic restrictions reasonable to protect employer)
- Boston Scientific Corp. v. Du-berg, 754 F. Supp. 2d 1033 (D. Minn. 2010) (one-year restrictions often deemed reasonable)
