Cross Country Staffing, Inc. et al v. Daniels, No. 2:2024cv00699 - Document 15 (D. Nev. 2024)
Court Description: ORDER Granting 14 Stipulation for Extension of Time. Signed by Judge James C. Mahan on 4/30/2024. (Copies have been distributed pursuant to the NEF - RJDG)
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Cross Country Staffing, Inc. et al v. Daniels Doc. 15 Case 2:24-cv-00699-JCM-DJA Document 14 Filed 04/26/24 Page 1 of 9 1 2 3 4 5 6 7 8 JOSHUA A. SLIKER, ESQ. Nevada Bar No. 12493 CAYLA A. WITTY, ESQ. Nevada Bar No. 12897 JACKSON LEWIS P.C. 300 S. Fourth Street, Ste. 900 Las Vegas, Nevada 89101 Telephone: (702) 921-2460 E-Mail: joshua.sliker@jacksonlewis.com E-Mail: cayla.witty@jacksonlewis.com Attorneys for Plaintiffs Cross Country Staffing, Inc., and New Mediscan II, LLC 9 UNITED STATES DISTRICT COURT 10 DISTRICT OF NEVADA 11 12 13 CROSS COUNTRY STAFFING, INC., a Delaware corporation; NEW MEDISCAN II, LLC d/b/a Cross Country Education, a California limited liability company, 14 15 16 Plaintiffs, v. KENNYSHUA DANIELS, an individual, Defendant. 17 18 20 22 25 26 27 (1) PLAINTIFF’S MOTION FOR TEMPORARY RESTRAINING ORDER (ECF NO. 5) (2) PLAINTIFF’S MOTION FOR PRELIMINARY INJUNCTION (ECF NO. 6) (4) PLAINTIFF’S MOTIONS TO ESTABLISH EXPEDITED BRIEFING SCHEDULE AND DECISION (ECF NOS. 7 and 10) 21 24 STIPULATION AND ORDER REGARDING: (3) PLAINTIFF’S MOTION TO CONDUCT EARLY, EXPEDITED DISCOVERY (ECF NO. 9) 19 23 Case No.: 2:24-cv-00699-JCM-DJA Plaintiffs CROSS COUNTRY STAFFING, INC. (“CCS”) and NEW MEDISCAN II, LLC d/b/a Cross Country Education (“Mediscan”) (collectively, “Plaintiffs”), by and through their undersigned counsel, the law firm of Jackson Lewis P.C., and Defendant Kennyshua Daniels (“Daniels”), by and through her counsel, the law firm of Jesse Sbaih & Associates Ltd., hereby stipulate and agree as follows: 28 JACKSON LEWIS P.C. LAS VEGAS Dockets.Justia.com Case 2:24-cv-00699-JCM-DJA Document 14 Filed 04/26/24 Page 2 of 9 1 2 A. Background 1. On April 10, 2024, Plaintiffs filed a Complaint and Request for Injunctive Relief 3 (ECF No. 1) alleging claims for: (i) trade secret misappropriation under the Defend Trade Secrets 4 Act, 18 U.S.C. § 1831 et seq.; (ii) trade secret misappropriation under the Nevada Uniform Trade 5 Secrets Act, NRS § 600A.010 et seq.; and (iii) breach of contract, against Defendant Daniels. 6 7 8 9 10 11 2. Defendant was personally served with the Summons and Complaint on April 12, 2024. ECF No. 12. 3. On April 17, 2024, Plaintiffs filed a Motion for Temporary Restraining Order (ECF No. 5), Motion for Preliminary Injunction (ECF No. 6), and Motion to Expedite Briefing and Decision of both motions (ECF No. 7). 4. Additionally, on April 17, 2024, Plaintiffs filed a Motion to Conduct Early, 12 Expedited Discovery in support of their Motion for Preliminary Injunction (ECF No. 9), and Motion 13 to Establish Expedited Briefing Schedule and Decision of the Motion (ECF No. 10). 14 15 16 5. Plaintiffs served Defendant with copies of ECF Nos. 5, 6, 7, 9 and 10 via email on April 17, 2024. 6. Subsequently, the Court issued an order on April 19, 2024, directing that Defendant 17 would have until April 26, 2024, to file a response to ECF Nos. 5, 6, and 9, and for Plaintiffs to file 18 a reply by May 1, 2024. ECF No. 11. 19 20 21 7. Plaintiffs personally served Defendant with the Court’s Order (ECF No. 11) on April 20, 2024. ECF No. 13. 8. The Parties are currently engaged in discussions to resolve this case expeditiously. 22 In furtherance of those efforts, Defendant has agreed to a stipulated temporary restraining order, to 23 allow Plaintiffs to conduct certain discovery, and to establish a briefing schedule for Defendant’s 24 responses to Plaintiff’s Motion for Preliminary Injunction (ECF No. 6). The Parties are optimistic 25 that the stipulations and agreements herein will aid them in their settlement efforts. 26 27 28 JACKSON LEWIS P.C. LAS VEGAS B. Plaintiffs’ Motion for Temporary Restraining Order (ECF No. 5) 10. Defendant Daniels agrees that the Employment Agreement, attached to the Complaint as Exhibit 1 (ECF No. 1-1) and to Plaintiffs’ Motion for Temporary Restraining Order 2 Case 2:24-cv-00699-JCM-DJA Document 14 Filed 04/26/24 Page 3 of 9 1 2 as Exhibit 1 (ECF No. 5-4), is valid and enforceable against her. 11. Defendant does not oppose Plaintiffs’ Motion for a Temporary Restraining Order 3 (ECF No. 5) and consents to the entry of a Temporary Restraining Order on the following terms 4 and conditions: 5 a. Defendant Kennyshua Daniels, and those persons set forth in FRCP 65(d)(2), 6 are ENJOINED from directly or indirectly, whether on her own behalf or on 7 behalf of any other person or entity, misappropriating, copying, transferring, 8 using, disclosing, or attempting to do any of the foregoing, any confidential, 9 proprietary, or trade secret information of: (i) Cross Country Staffing, Inc., New 10 Mediscan II, LLC, or their respective parents, subsidiaries, divisions, or affiliates 11 (collectively, “Cross Country”); or (ii) any third-party which entrusted such 12 information to any of the foregoing. For the avoidance of doubt, this prohibition 13 includes, but is not limited to, the information and materials set forth in ECF 14 Nos. 5-13 and 5-23 which are partially redacted, and which unredacted version 15 have been filed under seal as ECF Nos. 8-2 and 8-22. 16 b. Defendant Kennyshua Daniels, and those persons set forth in FRCP 65(d)(2), 17 are ENJOINED from directly or indirectly, whether on her own behalf or on 18 behalf of any other person or entity, contacting, soliciting, inducing, persuading, 19 enticing, diverting, or otherwise interfering with, or attempting to do any of the 20 foregoing, Cross Country’s relationships with its current or prospective 21 candidates, clients, vendors, and suppliers, including, but not limited to, those 22 candidates, clients, vendors, and suppliers identified in ECF Nos. 5-13 and 5-23 23 which are partially redacted, and which unredacted version have been filed under 24 seal as ECF Nos. 8-2 and 8-22. 25 c. Defendant Kennyshua Daniels, and those persons set forth in FRCP 65(d)(2), 26 are ENJOINED from directly or indirectly, whether on her own behalf or on 27 behalf of any other person or entity, soliciting, seeking to employ, inducing, 28 persuading, enticing, or attempting to do any of the foregoing, any person JACKSON LEWIS P.C. LAS VEGAS 3 Case 2:24-cv-00699-JCM-DJA Document 14 Filed 04/26/24 Page 4 of 9 1 employed by Cross Country at any time on or after April 3, 2023. 2 d. Defendant Kennyshua Daniels is ENJOINED from directly or indirectly, 3 whether on her own behalf or on behalf of any other person or entity, competing 4 with Cross Country, whether as an owner, officer, operator, employee, 5 consultant, independent contractor, advisor, agent, or otherwise, by providing 6 services to or on behalf of any person or entity that includes the sourcing, 7 recruitment, vetting, or placement of, or offering to place, persons (job 8 candidates) in any employment, job, assignment, or position in the education or 9 healthcare industries. For the avoidance of doubt this prohibition includes, but 10 is not limited to, Defendant Daniels’ employment with National Recruiting 11 Consultants and Invo Healthcare. 12 e. Defendant Kennyshua Daniels is ORDERED to provide a declaration pursuant 13 to 28 U.S.C. § 1746, to the undersigned attorneys for Cross Country, within three 14 (3) days of the Court’s issuance of the Temporary Restraining Order, setting 15 forth an inventory that identifies each device (by type, brand, model, serial 16 number, date acquired, and current location) and account (e.g., email account, 17 cloud-based storage) that she has used, at any time on or after January 3, 2022, 18 to: (i) perform work for or on behalf of Cross Country, National Recruiting 19 Consultants, Invo Healthcare, or any other staffing or recruitment business; (ii) 20 send, receive, copy, transfer, or store communications, documents, files, data or 21 other information of or regarding Cross Country, National Recruiting 22 Consultants, Invo Healthcare, or any other staffing or recruitment business, or 23 her employment with or work therefore; or (iii) view or download 24 communications, documents, files, data or other information of or obtained from 25 Cross Country, National Recruiting Consultants, Invo Healthcare, or any other 26 staffing or recruitment business, by virtue of her work for or employment with 27 any of those entities (collectively, the “Inventory Devices”). 28 JACKSON LEWIS P.C. LAS VEGAS f. Defendant Kennyshua Daniels is FURTHER ORDERED to return (i) all 4 Case 2:24-cv-00699-JCM-DJA Document 14 Filed 04/26/24 Page 5 of 9 1 tangible and intangible property of Cross Country, (ii) all communications, 2 documents, files and data that she download, emailed, copied, took, or otherwise 3 has possession, custody or control of, from Cross Country, (iii) all 4 communications, documents, files and data that contain the confidential, 5 proprietary or trade secret information of Cross Country, and (iv) all copies and 6 backups of the foregoing (the “Cross Country Property”), to Plaintiffs’ Counsel 7 within three (3) days of the Court’s issuance of the Temporary Restraining 8 Order. 9 g. Defendant Kennyshua Daniels is FURTHER ORDERED to provide the 10 Inventory Devices, and all necessary information to access the Inventory 11 Devices (e.g., usernames, passwords, two-factor authentication codes) and files 12 and data therein, to Plaintiffs’ expert, HOLO Discovery, 3016 W. Charleston 13 Blvd., Suite #170, Las Vegas, Nevada 89102, within five (5) days of the Court’s 14 issuance of the Temporary Restraining Order, for forensic imaging, inspection, 15 and analysis to determine whether any confidential, proprietary or trade secret 16 information of Cross Country or third parties who have entrusted such 17 information to Cross Country, was or is present, or is being or has been used. 18 h. To the extent not included in the Inventory Devices, Defendant Kennyshua 19 Daniels is FURTHER ORDERED to provide all necessary information to access 20 the 21 kennyshua.daniels@gmail.com, 22 kennyshua.notary@gmail.com, 23 halekenny255@gmail.com, to Plaintiffs’ expert, HOLO Discovery, 3016 W. 24 Charleston Blvd., Suite #170, Las Vegas, Nevada 89102, within five (5) days of 25 the Court’s issuance of the Temporary Restraining Order, for forensic imaging, 26 inspection, and analysis to determine whether any confidential, proprietary or 27 trade secret information of Cross Country or third parties who have entrusted 28 such information to Cross Country, was or is present, or is being or has been JACKSON LEWIS P.C. LAS VEGAS Google accounts (e.g., 5 Gmail, Google Drive, Calendar) for kennyshua.recruiter@gmail.com, kennyshua.hale@gmail.com, and Case 2:24-cv-00699-JCM-DJA Document 14 Filed 04/26/24 Page 6 of 9 used. 1 2 i. Defendant Kennyshua Daniels, and those persons set forth in FRCP 65(d)(2), 3 are ENJOINED from directly or indirectly, accessing, modifying, using, 4 impairing, deleting, or destroying, or attempting to do any of the foregoing, or 5 aiding or acquiescing in any other person or entity doing any of the foregoing, 6 any of the Cross Country Property, Inventory Devices, or information, files or 7 data contained therein, without the Court’s or Plaintiffs’ prior express written 8 permission. 9 j. Defendant Kennyshua Daniels, and those persons and entities set forth in FRCP 10 65(d)(2), is FURTHER ORDERED to preserve all information and evidence in 11 her possession, custody or control that may be relevant to the claims, defenses, 12 and events at issue in this litigation, including without limitation, all documents, 13 communications, files, and electronically stored information, in whatever form, 14 from January 3, 2022 to the present, regarding: (i) her employment with or work 15 for Cross Country, National Recruiting Consultants, Invo Healthcare, or any 16 other staffing or recruitment business, (ii) her communications, interactions, and 17 dealings with any of Cross Country’s candidates, clients, vendors, or suppliers; 18 (iii) her communications, interactions, and dealings with any of Cross Country’s 19 current and former employees or contractors regarding the modification or 20 termination of their employment with Cross Country, or becoming employed by 21 or providing services to any other person or entity than Cross Country; (iv) 22 Daniels’s acquisition, disclosure, use or possession of any of Cross Country’s 23 confidential and/or proprietary information or trade secrets. 24 12. The Parties agree that Plaintiffs do not need to post a bond to secure the Temporary 25 Restraining Order. However, if the Court disagrees and determines that Plaintiffs should post a 26 bond, the Parties agree that the sum of $1,000 is a sufficient amount for the bond. 27 28 JACKSON LEWIS P.C. LAS VEGAS 13. The Parties further agree that the Temporary Restraining Order shall remain in effect until the Court rules on Plaintiff’s Motion for Preliminary Injunction (ECF No. 6), the Court orders 6 Case 2:24-cv-00699-JCM-DJA Document 14 Filed 04/26/24 Page 7 of 9 1 2 3 otherwise, or the Parties’ otherwise stipulate subject to the Court’s approval. C. Plaintiff’s Motion for Preliminary Injunction (ECF No. 6) 14. Defendant is agreeing to the stipulated temporary restraining order discussed above 4 in order to facilitate the early resolution of this case. In doing so, Defendant reserves the right to 5 contest whether a preliminary injunction should be entered against her for the duration of the case, 6 should settlement not be reached. 7 15. To ensure the discovery process and settlement efforts outlined in this Stipulation 8 proceed in a timely manner, the Parties agree that deadlines should be established for Plaintiffs to 9 supplement their Motion for Preliminary Injunction with any additional relevant evidence obtained 10 during expedited discovery, Defendant’s response to Plaintiffs’ Motion for Preliminary Injunction, 11 and Plaintiffs’ reply in support thereof. 12 16. a. Plaintiff shall file any supplement to its Motion for Preliminary Injunction by 13 July 19, 2024. 14 b. Defendant’s response to Plaintiff’s Motion for Preliminary Injunction (and any 15 supplement thereto), if any, shall be due by August 2, 2024. 16 c. Plaintiff’s reply in support of its Motion for Preliminary Injunction (and any 17 supplement thereto), if any, shall be due on August 16, 2024. 18 19 As such, the Parties agree that: 17. Plaintiffs have requested a hearing on its Motion for Preliminary Injunction. 20 However, the Parties reserve the right to address in their briefing whether they believe a hearing is 21 necessary following expedited discovery. 22 23 24 D. Plaintiff’s Motion to Conduct Early, Expedited Discovery (ECF No. 9) 18. Defendant does not oppose Plaintiffs’ Motion to Conduct Early, Expedited Discovery and consent to granting of the Motion. 25 19. A discovery plan and scheduling order has not yet been entered in this case. 26 20. The Parties agree that early, expedited discovery is necessary for the Parties 27 settlement efforts and responses regarding Plaintiffs’ Motion for Preliminary Injunction to assess, 28 among other things, the extent that Defendant has misappropriated confidential information and JACKSON LEWIS P.C. LAS VEGAS 7 Case 2:24-cv-00699-JCM-DJA Document 14 Filed 04/26/24 Page 8 of 9 1 trade secrets, if any; Defendant’s compliance with and/or breach of, if any, the Employment 2 Agreement; and the harm resulting therefrom. 3 21. Plaintiffs shall be permitted to serve up to 15 interrogatories, 15 requests for 4 production and 15 requests for admission upon Defendant in accordance with the Federal Rules of 5 Civil Procedure. Defendants shall respond to Plaintiffs’ written discovery within ten (10) days after 6 service of any such discovery request. 7 8 9 10 22. Plaintiffs shall be permitted to take the deposition of Defendant in accordance with the Federal Rules of Civil Procedure. 23. Early, expedited discovery shall be completed by July 3, 2024. E. Plaintiff’s Motion to Establish Expedited Briefing Schedule and Decision of Plaintiff’s Motion to Conduct Early, Expedited Discovery (ECF No. 10) 11 12 13 14 15 24. In light of the stipulations and agreements reached herein, the Parties agree that Plaintiff’s Motion to Establish Expedited Briefing Schedule and Decision of Plaintiff’s Motion to Conduct Early, Expedited Discovery (ECF No. 9) is moot. Dated this 26th day of April, 2024. JACKSON LEWIS P.C. JESSE SBAIH & ASSOCIATES LTD. 20 /s/ Joshua A. Sliker JOSHUA A. SLIKER, ESQ. Nevada Bar No. 12493 CAYLA A. WITTY, ESQ. Nevada Bar No. 12897 300 S. Fourth Street, Ste. 900 Las Vegas, Nevada 89101 /s/ Jesse M. Sbaih JESSE M. SBAIH, ESQ. Nevada Bar No. 7898 170 S. Green Valley Parkway Suite 280 Henderson, Nevada 89012 21 Attorneys for Plaintiffs 16 17 18 19 Attorneys for Defendant 22 23 24 25 ORDER IT IS SO ORDERED: 26 United States District Court Judge / United States Magistrate Judge 27 April 30, 2024 Dated: ______________________________ 28 JACKSON LEWIS P.C. LAS VEGAS 8 RE: Cross Country Staffing, Inc.2:24-cv-00699-JCM-DJA v. Kennyshua Daniels Case Document 14 Filed 04/26/24 Page 9 of 9 Sliker, Joshua A. (Las Vegas) <Joshua.Sliker@Jacksonlewis.com> Thu 4/25/2024 8:35 PM To:jsbaih sbaihlaw.com <jsbaih@sbaihlaw.com>;iolevic sbaihlaw.com <iolevic@sbaihlaw.com> Cc:Chandler, Kelley (Las Vegas) <Kelley.Chandler@jacksonlewis.com>;Witty, Cayla J. (Las Vegas) <Cayla.Witty@jacksonlewis.com>;jdavidson sbaihlaw.com <jdavidson@sbaihlaw.com> 1 attachments (52 KB) Stipulation and Order re Temporary Restraining Order.docx; Hi Jesse, You have permission to affix my e-signature to the stipulation. Thanks. Josh Joshua A. Sliker Attorney at Law (Josh | He/Him) Jackson Lewis P.C. 300 S. Fourth Street Suite 900 Las Vegas, NV 89101 Direct: (702) 921 2486 | Main: (702) 921 2460 Joshua.Sliker@Jacksonlewis.com | www.jacksonlewis.com From: jsbaih sbaihlaw.com <jsbaih@sbaihlaw.com> Sent: Thursday, April 25, 2024 6:36 PM To: iolevic sbaihlaw.com <iolevic@sbaihlaw.com> Cc: Sliker, Joshua A. (Las Vegas) <Joshua.Sliker@Jacksonlewis.com>; Chandler, Kelley (Las Vegas) <Kelley.Chandler@jacksonlewis.com>; Wi y, Cayla J. (Las Vegas) <Cayla.Wi y@jacksonlewis.com>; jdavidson sbaihlaw.com <jdavidson@sbaihlaw.com> Subject: Re: Cross Country Sta ng, Inc. v. Kennyshua Daniels Josh…I hope all is well. Please advise is we have your consent to a x your e-signature on the SAO to extend the brie ng deadlines. As you know, the deadline for our opposi on is tomorrow, 4/26/24. I look forward to your prompt response. Best regards, Jesse M. Sbaih, Esq. Sent from my iPhone On Apr 24, 2024, at 10:55 PM, iolevic sbaihlaw.com <iolevic@sbaihlaw.com> wrote: Joshua, I hope all is well. Attached is the proposed SAO to extend briefing deadlines for various motions. Please advise whether any changes are needed or if we can add your signature and submit to the Judge for signature. Thank you. Best regards, Ines Olevic-Saleh, Esq. JESSE SBAIH & ASSOCIATES, LTD. The District at Green Valley Ranch 170 South Green Valley Parkway, Suite 280 Henderson, Nevada 89012 Tel: (702) 896-2529 Fax: (702) 896-0529 The information contained in this email message is protected under the Electronic Communications Privacy Act, 18 U.S.C. 2310-2321, and may also be protected by attorney-client and/or the attorney/work product privileges. It is intended only for the use of the individual named above and the privileges are not waived by virtue of this having been sent by email. If the person actually receiving this email or any other reader of the email is not the named recipient, any use, dissemination, distribution, or copying of the communication is strictly prohibited. If you have received this communication in error, please immediately notify us by telephone at (702) 896-2529 and return the original message to us at jsbaih@sbaihlaw.com. From: jsbaih sbaihlaw.com <jsbaih@sbaihlaw.com> Sent: Tuesday, April 23, 2024 8:28 PM To: Sliker, Joshua A. (Las Vegas) <Joshua.Sliker@jacksonlewis.com> Cc: Chandler, Kelley (Las Vegas) <Kelley.Chandler@jacksonlewis.com>; Wi y, Cayla J. (Las Vegas) <Cayla.Wi y@jacksonlewis.com>; iolevic sbaihlaw.com
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