Sylvan Learning Inc et al v. PCAG Inc et al

Filing 18

PRELIMINARY AND PERMANENT INJUNCTION CONSENT ORDER 1 . Signed by Judge Brian S. Miller on 5/23/11. (kpr)

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FILED

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"KANSAS
MAY 24 ZOIl
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IN THE UNITED STATES DISTRICT coutO:
FOR THE EASTERN DISTRICT OF ARJ(ANSA~~W---,~~~=~n
WESTERN DIVISION
SYLVAN LEARNING, INC., et at.,
Plaintiffs,

v.

Case No.: 4:ll-CV-398-BSM

PCAG, INC., et at.,
Defendants.

PRELIMINARY AND PERMANENT INJUNCTION CONSENT ORDER
Plaintiff Sylvan Learning, Inc. ("SLI") and Defendants PCAG, Inc. and Anthony P.
Gagliardo (collectively the "Defendants") hereby consent to the entry of the following
Preliminary and Pennanent Injunction in the above-captioned action:
ORDERED that Defendants PCAG, Inc. and Anthony P. Gagliardo (collectively the
"Defendants"), their officers, agents, representatives, employees, and all other persons acting for,
on behalf 0.4 or in concert with Defendants who receive actual notice of this Order by personal
service or otherwise, are hereby preliminarily and pennanently ENJOINED pursuant to this
Order, the terms of which are set forth below:
1.

Defendants, their agents, servants, employees and attorneys, and all others in

active concert or participation with them, shall not use any or all of the trademarks, service
marks, or trade names associated with SLI for any purpose;
2.

Defendants, their agents, servants, employees and attorneys, and all others in

active concert or participation with them, shall comply with all post-tennination obligations of

the Little Rock License Agreement and the Ace it! License Agreement, including, but not
necessarily limited to, Defendants' obligation to:
a.

immediately cease to do business under any name incorporating or similar to

Sylvan and cease using any and all of the SLI Marks, Ace it! Marks, proprietary programs,
systems, techniques, or materials;
b.

immediately return to SLI all proprietary, confidential or trade secret materials in

its possession, custody or control including without liJllitation, all student records, the
Confidential Operating Manual(s), all computer software and database material, customer lists,
records and files;
c.

immediately remove and destroy all signs, designs and insignia in any way

indicating or suggesting that Defendants' business establishment is related to or cOlmected with
SU, its subsidiaries or affiliates, or any of SLI's licensees;
d.

immediately cease using telephone number [phone], which is associated

with Defendants' fonner Sylvan Leaming franchise; and
e.

immediately refrain from engaging in any and all contacts with customers,

whether with respect to providing service to customers, or for any other purpose whatsoever; and
3.
I

Defendants, their agents, servants, employees and attol11eys, and all otllers in

active concert or participation with them, shall not violate the tenns of the

non~compete

provisions of the Little Rock License Agreement and the Ace it! License Agreement.

In

particular, Defendants shall not, for a period of two (2) years after termination of the Little Rock
License Agreement and the Ace it! License Agreement, engage as owners, operators, or in any
managerial capacity in any educational business offering individualized diagnostic tests or

2

academic or prescriptive educational programs which are designed to be personally taught,
supervised or administered by trained instructors, or in any educational business offering
programs or services competitive with programs or services available at the Sylvan Learning
Center or through the Ace itt System during the tenn of the Little Rock License Agreement and
the Ace it! License Agreement with SLI and at the time of tennination, and which programs or
services Defendants offered at their Center during the two (2) year period prior to the tenninatiol1
of the Little Rock License Agreement and the Ace it! License Agreement within the Territory
identified in the License Agreements or at any location less tllan five (5) miles from the Territory
boundary, other than as an authorized licensee of another Sylvan Center.

4.

Notwithstanding the tenns of Paragraph 3 set forth above, Defendants shall be

pennitted to act as consultants for any new owner(s) of the subject Little Rock, Arkansas Sylvan
Learning Center identified in the Little Rock License Agreement and the Ace it! License
Agreement, subject to SLI's approval of such new owner(s) pursuant to the tenus of the License
Agreements, and subject to the new oWller(s) desire and agreement for such a relationship with
Defendants.
5.

Defendants shall comply fully with all tenns of this Order by 5:00 p.m. EST on

May 23,2011.

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AOREEDTO:

~~a
Little Rook, Arkansas 72201
(50t) 371-0308 .
(Sot) 376·9442 (facsimile)

P. Keech
CHLAWFIRM
4800 Weat Conunercial Drive
N01'th Uttle Rook, Arkansas 72116
(501) 221~3200
[phone] (fA08imile)

ApplJc4tJcmjot· Pro Hac Vice Being Submif.tedfor

Attorneys for Defendants

WRIGHT, LINDSEY & JENNINGS LLP

200 West Capitol Avenu~ Suite 2300

Paul A. Penn
CONTI PENN & LAWRENCE LLC
36 South Charles S~ Suite 2501
Baltimore, Maryland 21201
[phone]
[phone] (facsimile)
Attorneys for Plaintiffs

SO ORDERED this 23111 day of May 2011 at.l\ ·.0f2a.tn.~

/3~~

The Ron. Brian S. Miller

$"- 2 '-t - 7c::. \.\
Date

United States District Court Judge

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