389 F. Supp. 3d 1291
N.D. Ga.2019Background
- MasterMind Involvement Marketing, Inc. performed social-media marketing for a group of Art Institute entities under a contract with their former parent, Dream Center Education Holdings (DCEH).
- MasterMind retained control of sixteen social media accounts (and login credentials) it had set up or managed pursuant to that contract.
- After DCEH's ownership changed, the Art Institute defendants (AI Defendants) and their parent Arts Institutes International, LLC (AII) demanded return of the accounts; MasterMind refused and sued the AI Defendants for unpaid fees.
- The AI Defendants answered and counterclaimed against MasterMind for claims including conversion, trade-secret misappropriation, breach of fiduciary duty, negligence, and CFAA violations, and moved for a preliminary injunction to compel transfer of the accounts and credentials.
- The Court granted joinder and leave to amend to add AII as a counterclaim plaintiff (AII owns the accounts) and granted the preliminary injunction ordering MasterMind to deliver complete login information for the sixteen accounts to the AI Defendants and AII.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Joinder of AII as counterclaim plaintiff | Not opposed; MasterMind raised no objection | AII owns the disputed accounts and should be joined under Rule 20 | Granted: AII permissively joined and may be named in amended counterclaims |
| Standard for preliminary injunction | MasterMind opposed transfer; argued reasons against injunctive relief | AI Defendants/AII argued Rule 65 factors met: likelihood on merits, irreparable harm, balance favors them, public interest supports injunction | Court applied four-factor test from Odebrecht and found factors satisfied; injunction granted |
| Likelihood of success on merits (conversion) | MasterMind contested merits generally | AI Defendants/AII argued conversion elements satisfied (title/possession/demand/refusal) | Court found substantial likelihood of success on conversion claim and that AII holds title to accounts |
| Irreparable harm / balance of harms / public interest | MasterMind would be burdened by producing credentials; argued against irreparable harm | AI Defendants/AII argued loss of social-media access harmed reputation, marketing, and business; public interest in institutional communication | Court found irreparable harm to AI Defendants/AII, minimal burden to MasterMind, and injunction consistent with public interest |
Key Cases Cited
- Odebrecht Constr., Inc. v. Secretary, Florida Dep’t of Transp., 715 F.3d 1268 (11th Cir. 2013) (articulates four-factor preliminary injunction test)
- Atlanta Sch. of Kayaking, Inc. v. Douglasville-Douglas Cty. Water & Sewer Auth., 981 F. Supp. 1469 (N.D. Ga. 1997) (movant need show substantial likelihood on at least one claim)
- Internal Med. All., LLC v. Budell, 290 Ga. App. 231 (Ga. Ct. App. 2008) (sets Georgia conversion elements)