Astro-Med, Inc. v. Nihon Kohden America, Inc.

591 F.3d 1 (1st Cir. 2009)

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Nature of the Case

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Facts

P is a Rhode Island corporation with its principal place of business in Rhode Island. P's marketing strategy and its pricing and cost structures are all highly confidential, and P makes strenuous efforts to protect its trade secrets and other confidential information. P hired Plant (D) as a Product Specialist, responsible for the demonstration and training of its Grass Technologies product line. P provided Plant (D) with extensive training about its business, products, customers, and competitors, and it was P's training that later made him marketable to D. P signed an Employee Agreement, and a trade secrets clause. The Agreement also contained a choice-of-law and forum-selection clause, which stated that it shall be governed by the laws of the state of Rhode Island and that Plant (D) consented to jurisdiction in Rhode Island for any dispute arising out of the Agreement. Plant (D) transferred to Florida and was eventually promoted to District Sales Manager. Plant (D) had access to and used P's trade secrets, including confidential marketing, pricing, and customer information. D has its principal place of business in California. D competes directly with P. Eventually, Plant (D) and D got together, and D hired Plant (D). D was aware of the Employment Agreement, and D's lawyer advised D that there was some minimal risk in hiring Plant (D); notwithstanding that advice, Plant(D) was hired to sell its products in competition with P in the sales territory he had covered for P. P sued Ds in Rhode Island. P was awarded $375,800 in damages. D appealed; Rhode Island was an improper venue, and the case should have been dismissed or transferred.