Wescom Financial Services, LLC v. Steven P. McCormick

Filing 32

PRELIMINARY INJUNCTION ORDER by Judge George H. Wu. IT IS HEREBY ORDERED AND DECREED THAT DEFENDANT STEVEN P. MCCORMICK is immediately enjoined and restrained, directly or indirectly, and whether alone or in concert with others, and/or represen tative of Questar Capital Corporation(Questar) and/or McCormick Wealth Management, LLC (MWM), from doingany of the following until a duly appointed panel of FINRA arbitrators decidesWFS' claim for permanent injunctive relief. See document for details. (lom)

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA, WESTERN DIVISION
WESCOM FINANCIAL SERVICES,
LLC, a California limited liability
company,
Plaintiff,

Case No.: CV 17-1928-GW(Ex)
PRELIMINARY INJUNCTION
ORDER

v.
STEVEN P. MCCORMICK,
Defendant.

TO ALL PARTIES AND THEIR ATTORNEYS OF RECORD:
On April 17, 2017, this matter came before this Court on the motion of
plaintiff Wescom Financial Services, LLC (“WFS”) for a preliminary injunction
against defendant Steven P. McCormick (“McCormick”). After considering the
parties’ briefs, evidence, and oral argument of counsel, the Court took the matter
under submission and ordered the parties to submit supplemental briefing.
On May 1, 2017, having read and considered the supplemental filings of the
parties, the Court dismissed, without prejudice, WFS’ claims other than WFS’ claim
for misappropriation of trade secrets under 18 U.S.C. § 1836, et seq. (“DTSA
Claim”), and GRANTED WFS’ motion for preliminary injunction as follows:

IT IS HEREBY ORDERED AND DECREED THAT DEFENDANT
STEVEN P. MCCORMICK is immediately enjoined and restrained, directly or
indirectly, and whether alone or in concert with others, including any director,
officer, agent, employee and/or representative of Questar Capital Corporation
(“Questar”) and/or McCormick Wealth Management, LLC (“MWM”), from doing
any of the following until a duly appointed panel of FINRA arbitrators decides
WFS’ claim for permanent injunctive relief:
(a)

soliciting and/or initiating contacts or communications with any

current client of WFS whom McCormick serviced while he was employed at WFS,
or whose name became known to McCormick by virtue of his employment with
WFS, for the purpose of inviting, encouraging, persuading or requesting any such
client to do business with McCormick or seeking to have any such client discontinue
or diminish any business relationship with WFS; and
(b)

directly or indirectly using, disclosing, sharing, transferring or

otherwise disseminating WFS’ client contact information and customer lists for any
purpose, including without limitation, inviting, encouraging, persuading or
requesting any client of WFS to surrender, terminate, redeem or discontinue
payments towards any insurance products, annuity contracts, security products, or
investment advisory products or services.
Nothing in this order shall prohibit McCormick from communicating with
and otherwise servicing his current clients.
Notwithstanding the above, McCormick may mail announcements of his new
employment to WFS’s customers so long as the announcement does not include any
solicitation of business either directly or implicitly (for example, by including a
description of the new services provided by his new company and requesting to talk
with the client about those services). As to any previous announcements or

communications wherein McCormick solicited a current or former WFS client for
business with his new company, McCormick may not henceforth (until a duly
appointed panel of FINRA arbitrators decides WFS’ claim for permanent injunctive
relief) accept that person or entity as a new client.
IT IS SO ORDERED on this 8th day of May, 2017 at 12:52 p.m.

GEORGE H. WU, U.S. District Judge