On November 4, 2021, in a 21-page Memorandum Opinion and Order, the United States District Court for the Eastern District of Texas dismissed counterclaims filed against the Firm’s clients. The Firm’s clients, which are involved in the network marketing industry, filed suit against several former independent contractors who left to join a competitor. In the Memorandum Opinion, the Court agreed with the Firms’ clients that the declaratory judgment claims alleged against them were not valid based upon Fifth Circuit precedent related to mirror-image claims. The departing contractors’ declaratory judgment claims were dismissed with prejudice under this analysis. The Memorandum Opinion also noted deficiencies with the departing contractors’ tortious interference with contract claims, such as a failure to allege a specific contract subject to interference, a failure to allege interference by obtaining a TRO in another case, a failure to allege interference caused damage, and a failure to allege damages. The representation of the Firm’s client was led by Shareholders Matthew K. Davis and R. Steven Jones and Senior Of-Counsel, Wendy Dawer.
