A U.S. District Judge has removed to federal court a lawsuit by Novus Marketing Inc., Minneapolis, against its former vice president of list management, Monica C. Smith. The suit was moved from state court in Minnesota because the amount of compensatory damages Novus is requesting in the suit will exceed the cap allowed for damages in state court, according to the decision.
For a case to proceed in federal court, the damage request must be $75,000 or more. Novus claimed the damages would not exceed $75,000.
The lawsuit alleges that Smith will “inevitably” reveal Novus trade secrets to competitors. Smith has filed a denial in court papers. She had left her position in March, and later formed consulting firm Marketsmith Inc., Milford, NJ. Smith subsequently worked as a consultant for Direct Media Inc., Greenwich, CT, until a temporary restraining order prevented her from continuing.
The move to U.S. District Court for the District of Minnesota does not alter the temporary restraining order served against Smith June 22, Judge Ann D. Montgomery decided. The restraining order prohibits “Smith from working not only for Direct Media, but also for ‘any list manager,'” according to court papers. The restraining order remains in effect until there are further proceedings on it.
“We are satisfied that the judge made the correct ruling on the issue of federal jurisdiction,” said Smith’s attorney, Jeffrey M. Schlossberg, attorney at Ruskin, Moscou, Evans & Faltischek PC, Mineola, NY.
In making her ruling, rendered July 20, Montgomery cited Novus’ original complaint against Smith, which said: “‘At present, Novus’ damages cannot be calculated but are thought to be less than $75,000, but those damages are nearly certain to exceed $75,000 as the litigation continues.'”
Also, Montgomery ruled, because the plaintiff and defendant are citizens of different states, the case can proceed in federal court.
Novus’ attorney did not return calls.
