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Mississippi Laundry Services, LLC v. Evans

United States District Court, S.D. Mississippi, Southern Division

January 3, 2017

MISSISSIPPI LAUNDRY SERVICES, LLC, and XANITOS, INC. PLAINTIFFS
v.
BRYCE EVANS and JOHN DOES 1-15 DEFENDANTS

          ORDER DENYING WITHOUT PREJUDICE DEFENDANT'S RULE 12(B)(6) MOTION TO DISMISS [18], DENYING AS MOOT DEFENDANT'S MOTION TO STRIKE EXHIBITS [28], AND GRANTING PLAINTIFFS' MOTION FOR LEAVE TO FILE AMENDED COMPLAINT [24]

          HALIL SULEYMAN OZERDEN, UNITED STATES DISTRICT JUDGE

         This matter is before the Court on Defendant Bryce Evans' Motion to Dismiss [18] and Motion to Strike [28], and Plaintiffs Mississippi Laundry Services, LLC, and Xanitos, Inc.'s, Motion for Leave to File Amended Complaint [24]. Having considered the parties' submissions, the record, and relevant legal authority, the Court is of the opinion that Defendant's Motion to Dismiss should be denied without prejudice to Defendant's right to re-urge, and Defendant's Motion to Strike should be denied as moot. Plaintiffs' request for leave to amend their Complaint should be granted and Plaintiffs are granted leave until Friday, January 20, 2017, to file any Amended Complaint.

         I. BACKGROUND

         This case arises out of an employment dispute. Defendant Bryce Evans (“Defendant”) acknowledges that on September 29, 2014, he entered into an Employment Agreement with Plaintiff Xanitos, Inc. (“Xanitos”), that contained noncompetition and confidentiality clauses. Mot. to Dismiss [18] at 1. Defendant subsequently left his employment with Xanitos and began working for Gulf Coast Laundry Services of Mississippi, Inc., a “chief competitor” of Plaintiff Mississippi Laundry Services, LLC (“Mississippi Laundry”), in December 2015. Compl. [1] at 2-7.

         On February 24, 2016, Plaintiffs Mississippi Laundry Services, LLC (“Mississippi Laundry”), and Xanitos (collectively, “Plaintiffs”), filed a Complaint [1] asserting claims against Defendant Bryce Evans (“Evans” or “Defendant”) for:

Count I Preliminary and Permanent Injunction;
Count II Conversion of Plaintiffs' Documents;
Count III Unfair Competition and Tortious Interference with Actual and Prospective Advantageous Business Relations;
Count IV Misappropriation of Trade Secrets;
Count V Violation of the Computer Fraud and Abuse Act; and
Count VI Breach of Contract.

Compl. [1] at 7-11.

         On April 1, 2016, Evans filed a Rule 12(b)(6) Motion to Dismiss [18] asserting that Plaintiffs' Complaint fails to state a claim. Mot. to Dismiss [18] at 1. Evans contends that Mississippi Laundry is not a party to his Employment Agreement with Xanitos and thus lacks standing to raise claims against Evans arising out of the Employment Agreement. Id. Evans maintains that the Complaint fails to state a claim because it relates to Mississippi Laundry's business and not Xanitos' business. Id.

         Plaintiffs have filed a Response [24] in Opposition to Defendant's 12(b)(6) Motion to Dismiss the Complaint, or, in the Alternative, Plaintiffs' Motion for Leave to File Amended Complaint. Plaintiffs argue that the Complaint does state a claim in that Mississippi Laundry “is an intended third party beneficiary of the Employment Agreement.” Resp. ...


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