ORDER
This is an action for breach of contract. It is before the Court on the Defendants’ Motion to Dismiss [Doc. 2]; the Defendants’ Motion to Strike [Doc. 8]; and the Plaintiffs Motion to Strike [Doc. 9]. For the reasons set forth below, the Defendants’ Motion to Strike [Doc. 8] is GRANTED IN PART and DENIED IN PART, the Plaintiffs Motion to Strike [Doc. 9] is GRANTED, and the Defendants’ Motion to Dismiss [Doc. 2] is GRANTED IN PART and DENIED IN PART.
I. Background
The Plaintiff, Exceptional Marketing Group, Inc. (“EMG”), is a Georgia corporation that provides marketing services. From September 2004 until June 2009, Defendant Jeff Jones was employed by EMG as Vice President of Business Development — Hospitality and Travel. In this position, Jones solicited clients for EMG. While working for EMG, Jones resided in Florida. Jones communicated with EMG’s Georgia office by telephone and email and sent monthly invoices to EMG’s Georgia headquarters. Further, Jones traveled to Georgia on multiple occasions to discuss marketing strategies and perform work for EMG. Jones also flew through the Atlanta airport while conducting EMG’s business. On behalf of EMG, Jones performed work for several clients with locations in Georgia. Further, while working for EMG, Jones provided marketing services for Fiesta Americana Hotels and Resorts (“Fiesta”), a hotel chain based in Mexico.
On June 29, 2009, Jones and EMG entered into a written severance agreement. (Compl., Ex. A.) The agreement provided that Jones would not “share trade secrets of the Company with any person or organization,” and that Jones would “immediately return all such Company information in your possession.” Id. Also, the agreement required Jones “not to solicit the customers of the Company with whom you have been servicing for marketing services for a period of one year from the Effective Date this [sic] letter.” Id.
Upon leaving EMG, Jones began working for 89 Degrees, LLC (“89 Degrees”), a marketing company headquartered in Massachusetts. Defendant Thomas Woodside, a Massachusetts resident, was 89 Degrees’ Vice President of Business Development — Retail. While working at 89 Degrees, Jones allegedly solicited Fiesta to transfer its marketing business from EMG to 89 Degrees. As a result of this solicitation, Fiesta engaged 89 Degrees to provide marketing services and terminated its relationship with EMG. Also, while working for 89 Degrees, Jones allegedly used an EMG email account to disclose EMG’s trade secrets to Woodside and 89 Degrees.
EMG filed this Complaint seeking damages for breach of contract, tortious interference with contract, tortious interference with business relations, violation of the Georgia Trade Secrets Act, O.C.G.A. § 10-1-761
et seq.,
conversion, violation of the Uniform Deceptive Trade Practices Act, O.C.G.A. § 16-9-120,
et seq.,
and unjust
The Defendants argue that neither Jones, Woodside, nor 89 Degrees has sufficient contacts with Georgia to satisfy the Georgia long-arm statute or federal due process. Further, the Defendants claim that the nonsolieitation clause in the separation agreement is unenforceable. Finally, both parties have filed Motions to Strike [Docs. 8 & 9]. The Defendants argue that portions of the declarations in support of the Plaintiffs Response to the Defendants’ Motion to Dismiss [Doc. 5] should be struck because they are speculative and conclusory. The Plaintiff argues that the declarations in support of the Defendants’ Reply in Support of the Defendants’ Motion to Dismiss [Doc. 6] should be struck because federal and local rules do not authorize filing reply declarations.
II. Legal Standards
A. Motion to Dismiss for Lack of Personal Jurisdiction
“In the context of a motion to dismiss for lack of personal jurisdiction in which no evidentiary hearing is held, the plaintiff bears the burden of establishing a prima facie case of jurisdiction over the movant, nonresident defendant.”
Morris v. SSE, Inc.,
B. Motion to Dismiss for Failure to State a Claim
A complaint should be dismissed under Rule 12(b)(6) only where it appears that the facts alleged fail to state a “plausible” claim for relief.
Ashcroft v. Iqbal,
— U.S. -,
III. Discussion
A. The Defendants’ Motion to Strike
The Defendants have moved to strike portions of the Plaintiffs declarations filed in support of the Plaintiffs Response to the Defendants’ Motion to Dismiss. Motions to strike may be made only to pleadings. Fed. R. Civ. P. 12(f). The Court will consider the motion as an objection to consideration of the declaration. A declaration may “only be considered to the extent that it is based on personal knowledge.”
HomeBingo Network v. Chayevsky,
In
Atlanta Attachment Co. v. Leggett & Platt, Inc.,
No. 05-CV-1071,
By contrast, in
Bozeman v. Per-Se Technologies, Inc.,
Here, the Defendants argue that the Court should strike several portions of the Declaration of Jim DiChiara. First, the Defendants object to testimony claiming that the Defendants “had to know,” “would have had to know,” or “had to have known” that their conduct would violate the nonsolicitation and confidentiality agreements, thereby injuring EMG.
{See
DiChiara Deck ¶¶ 13-15.) As in
Bozeman,
DiChiara did not have access to the Defendants’ thought processes.
See Bozeman,
Second, the Defendants argue that the Court should strike portions of paragraph 16 of the DiChiara Declaration that comment on the business relationship be
Finally, the Defendants argue that the Court should strike portions of the DiChiara Declaration that speculate on 89 Degrees’ contacts with Georgia. Specifically, the Defendants object to DiChiara’s testimony that “while I do not know exactly how much business 89 Degrees does in Georgia ... I have no doubt that the amount of business is substantial.” (DiChiara Decl. ¶ 18.) Further, DiChiara claims that “I believe that 89 Degrees performs some element of the marketing process for IKEA and hhgregg” and that marketing materials “likely are created by 89 Degrees and transmitted by it to Georgia.” Id. DiChiara does not even claim personal knowledge of these facts. Indeed, this testimony is not a statement of fact, but rather an assertion of DiChiara’s personal “belief’ regarding 89 Degrees’ business practices. Unlike the affiant in Atlanta Attachment, DiChiara does not base this speculation on any first hand knowledge or experience with 89 Degrees. For this reason, the Court will not consider these portions of the DiChiara Declaration.
B. The Plaintiffs Motion to Strike
The Plaintiff has moved to strike the declarations filed in support of the Defendants’ Reply Brief in Support of the Defendants’ Motion to Dismiss [Doc. 7]. EMG argues that it is unfairly prejudiced because it cannot respond to the Defendants’ reply declarations. The Federal Rules of Civil Procedure provide that “[wjhen a motion is supported by affidavit, the affidavit shall be served with the motion ...” Fed. R. Civ. P. 6(d). Further, according to the Local Rules for the Northern District of Georgia, “[ejvery motion presented to the clerk for filing shall be accompanied by a memorandum of law which cites supporting authority. If allegations of fact are relied upon, supporting affidavits must be attached to the memorandum of law.” L.R. 7.1A(1), N.D.Ga. The court considers reply affidavits only for the “limited purpose of responding to matters raised in the responses filed by the opposing parties.”
Tishcon Corp. v. Soundview Commc’ns, Inc.,
No 04-CV-524,
Here, the Defendants’ declarations do not respond to new arguments raised by the Plaintiff in its response. First, the Declaration of Jeff Jones simply clarifies and elaborates on Jones’ contacts with Georgia
(See
Jones Decl.). The sub
C. Motion to Dismiss for Lack of Personal Jurisdiction
The Defendants have moved to dismiss under Rule 12(b)(2) for lack of personal jurisdiction. “A federal court sitting in diversity undertakes a two-step inquiry in determining whether personal jurisdiction exists: the exercise of jurisdiction must (1) be appropriate under the state long-arm statute and (2) not violate the Due Process Clause of the Fourteenth Amendment to the United States Constitution.”
Diamond Crystal,
The Georgia long-arm statute provides, in pertinent part:
A court of this state may exercise personal jurisdiction over any nonresident or his or her executor or administrator, as to a cause of action arising from any of the acts, omissions, ownership, use, or possession enumerated in this Code section, in the same manner as if he or she were a resident of the state, if in person or through an agent, he or she: (1) Transacts any business within the state; (2) Commits a tortious act or omission within this state, except as to a cause of action for defamation of character arising from the act; (3) Commits a tortious injury in this state caused by an act or omission outside this state if the tortfeasor regularly does or solicits business, or engages in any other persistent course of conduct, or derives substantial revenue from goods used or consumed or services rendered in this state....
0.C.G.A. § 9-10-91. The Georgia long-arm statute “imposes independent obligations that a plaintiff must establish for the exercise of personal jurisdiction that are distinct from the demands of procedural due process.”
Diamond Crystal,
1. Personal Jurisdiction Over Jeff Jones
The Plaintiff argues that Jeff Jones is subject to personal jurisdiction under subsection (1) of the Georgia long-arm statute.
1
See
O.C.G.A. § 9-10-91(1). “[S]ubsection (1) long-arm jurisdiction in Georgia expressly depends on the actual transaction of business — the doing of some act or consummation of some transaction— by the defendant in the state.”
Diamond
In
Gee v. Reingold,
Here, construing conflicts between the parties’ declarations in favor of the Plaintiff, Jones’ contacts with Georgia relating to this suit extend well beyond mere telephone and facsimile transmissions. While employed at EMG, Jones communicated with EMG representatives in Georgia several times a day. He sent monthly invoices to EMG’s headquarters in Georgia. Jones received the proprietary information he is accused of disclosing from EMG representatives in Georgia. Jones allegedly disclosed this proprietary information using an EMG email account maintained in Georgia. Further, unlike the defendant in
Gee,
Jones visited Georgia to conduct EMG’s business, including performing work for Fiesta, 3-4 times per year early in his tenure and 1-2 times per year thereafter. (DiChiara Decl. ¶ 6.) Also, Jones traveled to Georgia to work on several accounts for businesses located in Georgia.
2
Thus, unlike the defendant in
Gee,
Jones performed work in Georgia and worked on Georgia matters.
See Gee,
Personal jurisdiction over Jones must also comport with procedural due process. “A forum may exercise specific jurisdiction over a nonresident defendant if the defendant has ‘purposefully directed’ his activities to forum residents and the resulting litigation derives from alleged injuries that ‘arise out of or relate to’ those activities.”
Cable/Home Commc’n Corp. v. Network
As discussed above, Jones purposefully directed his activities toward Georgia by visiting the state to perform EMG business on numerous occasions, communicating by telephone and email with EMG representatives in Georgia, accepting and distributing confidential information sent from Georgia, and performing work for clients located in Georgia. Further, these contacts relate to the Plaintiffs injuries. Jones acquired the proprietary information he is alleged to have misappropriated through his contacts with Georgia. Jones disclosed this information using an EMG email account maintained in Georgia. Finally, Jones traveled to Georgia to perform work on the Fiesta account he is accused of soliciting. 3 Thus, Jones’ activities directed at Georgia relate to EMG’s injuries.
Further, Jones is subject to personal jurisdiction under the effects test set forth in
Calder v. Jones,
Similarly, in
Licciardello v. Lovelady,
The facts in this case are remarkably similar to those in Licciardello. Here, EMG alleges that Jones intentionally solicited clients and misappropriated trade secrets in violation of the separation agreement. As in Licciardello, Jones appropriated the Plaintiffs property “for commercial gain.” Id. Also like Licciardello, the misappropriation was intentional and targeted at the Plaintiff, seeking to profit from EMG’s client relationships and trade secrets. Thus, Jones has sufficient minimum contacts to support personal jurisdiction in Georgia.
Finally, the Defendants argue that the exercise of personal jurisdiction over Jones does not comport with traditional notions of “fair play and substantial justice.”
Burger King,
Here, as in
Licciardello,
the Plaintiff, harmed by the intentional conduct of the Defendants, should not be forced to travel to the Defendants’ state of residence to obtain a remedy. Further, as in
Licciardello,
“Georgia has a strong interest in protecting Georgia corporations, like the plaintiff, from the illegal attempts of non-residents to misappropriate computer data, technology, trade secrets, and confidential information.”
Peridyne Tech. Solutions, LLC v. Matheson Fast Freight, Inc.,
2. Personal Jurisdiction Over Woodside and 89 Degrees
Having found that Jones is subject to personal jurisdiction in Georgia, the Court now turns to Defendants Woodside and 89 Degrees. The Plaintiff does not argue that either Woodside or 89 Degrees is subject to personal jurisdiction under subsection (1) of the Georgia long-arm statute. Indeed, neither Woodside nor 89 Degrees has transacted business in Georgia related to this suit. Thus, the Court will address subsections (2) and (3) only.
Subsection (2) of the Georgia long-arm statute provides personal jurisdiction over nonresident defendants who commit a tortious act or injury in Georgia.
See
O.C.G.A. § 9-10-91(2). A tortious act occurs “either where the allegedly negligent act or omission was made ... or where the damage was sustained.”
Atlanta Propeller Serv., Inc. v. Hoffmann GMBH & Co.,
Here, neither Woodside nor 89 Degrees has committed any act or omission in Georgia. Still, the Plaintiff argues that the Defendants are subject to personal jurisdiction because EMG sustained an injury in Georgia. This argument is without merit. With respect to solicitation of Fiesta, the injury took place in Mexico, where the Defendants improperly solicited and acquired EMG’s former client. With respect to the misappropriation of trade secrets, the injury took place in Massachusetts, where Jones revealed secrets to Woodside and 89 Degrees and where, allegedly, the Defendants took advantage of those secrets for commercial gain. Although the economic consequences of these injuries manifested in Georgia, neither Woodside nor 89 Degrees committed a tortious act in Georgia sufficient to establish personal jurisdiction over them.
A contrary interpretation of subsection (2)’would render subsection (3) of the long-arm statute superfluous. As discussed below, subsection (3) authorizes personal jurisdiction over nonresidents who commit tortious acts
otitside
Georgia causing injury
inside
Georgia.
See
O.C.G.A. § 9-10-91(3). Subsection (3) also requires, however, that the nonresident regularly do or solicit business, engage in a persistent course of conduct, or derive substantial revenue from Georgia. O.C.G.A. § 9-10-91(3). Reading subsection (2) to provide personal jurisdiction in this case, where tortious conduct outside Georgia caused economic harm inside Georgia, would create an end around the more stringent re
Finally, the Plaintiff argues that Wood-side and Jones are subject to personal jurisdiction under subsection (3) of the long-arm statute. Subsection (3) provides for personal jurisdiction over nonresidents who “[c]ommit[] a tortious injury in this state caused by an act or omission outside this state if the tort-feasor regularly does or solicits business, or engages in any other persistent course of conduct, or derives substantial revenue from goods used or consumed or services rendered in this state.” O.C.G.A. § 9-10-91(3). In
Gee,
the defendant attorney had five cases pending in Georgia at the time of the suit.
Gee,
Here, the Plaintiff has presented no evidence showing that either Woodside or 89 Degrees has engaged in any business in Georgia. 89 Degrees has no presence in Georgia and performs no work in Georgia. EMG notes, however, that 89 Degrees has several clients that maintain locations in Georgia. Although those clients may derive substantial revenue from Georgia, EMG has produced no evidence showing that 89 Degrees derives substantial revenue from Georgia. Indeed, 89 Degrees asserts that it “has not conducted any business activities in the State of Georgia.” (Hussey Decl. ¶ 8.) EMG has not shown otherwise. 4 Thus, neither Woodside nor 89 Degrees is subject to personal jurisdiction under subsection (3) of the Georgia long-arm statute. For these reasons, Defendants Woodside and 89 Degrees are not subject to personal jurisdiction in Georgia.
D. Motion to Dismiss for Failure to State a Claim
The Defendants have also moved to dismiss the Plaintiffs claims for breach of contract (Count 1), tortious interference with contract (Count 2), tortious interference with business relations (Count 3), and unjust enrichment (Count 8) for failure to state a claim.
See
Fed. R. Civ. P. 12(b)(6). First, the Defendants argue that the non-solicitation agreement is unenforceable because it does not specify which EMG customers Jones cannot solicit. In Georgia, “unless the nonsolicit covenant pertains only to those clients with whom the employee had a business relationship during the term of the agreement, the nonsolicit covenant must contain a territorial restriction.”
Advance Tech. Consultants, Inc. v. RoadTrac, LLC,
In
Palmer & Cay of Georgia, Inc. v. Lockton Cos.,
Also, the Defendants argue that the nonsolicitation agreement is invalid because it is not restricted to solicitations in competition with EMG’s business. In Georgia, nonsolicitation agreements are invalid if they do not “limit the purpose for which [the employee] may not solicit [the employer’s] clients.”
Riddle v. Geo-Hydro Eng’rs, Inc., 254
Ga.App. 119, 120,
IV. Conclusion
For the reasons set forth above, the Defendants’ Motion to Strike [Doc. 8] is GRANTED IN PART and DENIED IN PART, the Plaintiffs Motion to Strike [Doc. 9] is GRANTED, and the Defendants’ Motion to Dismiss [Doc. 2] is GRANTED IN PART and DENIED IN PART.
Notes
. The Plaintiff does not argue that either 89 Degrees or Woodside is subject to personal jurisdiction under subsection (1) of the Georgia long-arm statute. Thus, the Court will analyze subsection (1) only as it applies to Jones.
. Although the Defendants dispute the nature of Jones' work for these clients, at this stage, the Court resolves conflicts in the evidence in favor of the party asserting jurisdiction.
Madam,
. Again, the Defendants claim that Jones performed work for Fiesta only in Florida. At this stage, however, conflicts between the parties' declarations are resolved in favor of the Plaintiff.
. As discussed above, DiChiara’s conclusoiy assertion that he has "no doubt that the amount of business is substantial” will not be considered by the Court.
