TriNet Group, Inc. et al v. Nicholas Krantz, et al

Filing 38

PRELIMINARY INJUNCTION by Judge Andre Birotte Jr.: Upon the Ex Parte Application by plaintiffs TriNet Group, Inc. and TriNet HR Corporation for Issuance of Temporary Restraining Order and Order to Show Cause Re: Preliminary Injunction 12 , THE COURT FINDS AND ORDERS AS FOLLOWS: Defendant Nicholas Krantz, and all persons acting under his direction, control, permission, or authority, and all persons acting in concert therewith, is hereby ENJOINED, during the pendency of this action, etc. See document for details. Plaintiffs are not required to post a bond. (gk)

NOTE: CHANGES MADE BY THE COURT

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IN THE UNITED STATES DISTRICT COURT

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FOR THE CENTRAL DISTRICT OF CALIFORNIA

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WESTERN DIVISION

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TRINET GROUP, INC.; and
11 TRINET HR CORPORATION,
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Plaintiffs,

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Case No. 2:16-cv-6447-AB (GJSx)
[PROPOSED] PRELIMINARY
INJUNCTION

vs.

14 NICHOLAS KRANTZ;
HR OUTSOURCING, INC.; and
15 DOES 1-10,
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Defendants.

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PRELIMINARY INJUNCTION

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Based on the Complaint on file herein; the ex parte application by plaintiffs

2 TriNet Group, Inc. (“TriNet Group”) and TriNet HR Corporation (“TriNet HR” and,
3 collectively, “Plaintiffs”) for Issuance of Temporary Restraining Order and Order to
4 Show Cause Re: Preliminary Injunction (the “Application”) and all materials
5 submitted therewith; the Court’s order dated September 2, 2016 requiring
6 Defendants to show cause why a preliminary injunction should not issue pending
7 trial; the opposition and reply papers filed in connection therewith; and all parties
8 having been given an opportunity to be heard before this Court on September 12,
9 2016; THE COURT FINDS AND ORDERS AS FOLLOWS:
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1.

Plaintiffs have demonstrated they are likely to succeed on the merits on

12 their claims for misappropriation of trade secrets, pursuant to the Defend Trade
13 Secrets Act of 2016, and violation of California’s Unfair Competition Law against
14 Defendants Nicholas Krantz. TriNet HR also has demonstrated that it is likely to
15 succeed on the merits of its claim for breach of contract against Mr. Krantz.
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2.

Plaintiffs are likely to suffer irreparable harm, including the loss of

17 customers and damage to their goodwill, absent injunctive relief.
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3.

The balance of equities tips decidedly in Plaintiffs’ favor.

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4.

The requested injunction would serve the public interest by upholding

20 the important policy of protecting Plaintiffs’ valuable trade secret information.
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5.

Accordingly, pursuant to Federal Rule of Civil Procedure 65(b), Civil

22 Local Rule 65-1, 18 U.S.C. § 1836(b)(3), California Business and Professions Code
23 section 17203, as well as applicable California and common law, Defendant
24 Nicholas Krantz, and all persons acting under his direction, control, permission, or
25 authority, and all persons acting in concert therewith, is hereby ENJOINED, during
26 the pendency of this action, from:
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a.

altering, destroying, or disposing of any evidence or other

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materials, in any form, relating to this action and the issues

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raised herein; or

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b.

directly or indirectly accessing, using, disclosing, or making

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available to any person or entity other than Plaintiffs, any of

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Plaintiffs’ confidential, proprietary, or trade secret documents,

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data or information, including but not limited to the files that

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Mr. Krantz sent himself from his TriNet email to account to his

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personal yahoo.com email account on June 14 and 15, 2016.

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6.

In addition, pursuant to 18 U.S.C. § 1836(b)(3)(A)(ii), Mr. Krantz, and

11 all persons acting under his direction, control, permission, or authority, and all
12 persons acting in concert therewith, shall:
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a.

immediately return to Plaintiffs all copies in Mr. Krantz’s

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possession, or the possession of anyone acting under their

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direction, control, permission, or authority, of any of Plaintiffs’

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confidential information, including but not limited to the files

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that Mr. Krantz sent himself from his TriNet email to account to

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his personal yahoo.com email account on June 14 and 15, 2016;

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and

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b.

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report to the Court within 30 days of issuance of this order
regarding their efforts to comply with this order.

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It is further ordered that Mr. Krantz will suffer no legally cognizable

23 form of damages upon issuance of this injunction. Additionally, Mr. Krantz
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1 contractually waived any right to a bond. Accordingly, pursuant to Federal Rule of
2 Civil Procedure 65(c), Plaintiffs are not required to post a bond.
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DATED: September 14, 2016

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THE HONORABLE ANDRÉ BIROTTE JR.
UNITED STATES DISTRICT JUDGE

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