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Pre-Paid Legal Services, Inc. v. Kidd

United States District Court for the Eastern District of Oklahoma
2011 WL 5079538 (2011)

Written by Tammy Boggs, JD

Facts

Percy Kidd (defendant) was a former associate of Pre-Paid Legal Services, Inc. (Pre-Paid) (plaintiff). On October 10, 2011, Pre-Paid sued Kidd in Oklahoma state court, alleging misappropriation of trade secrets, among other claims. The court entered a temporary restraining order (TRO) enjoining Kidd from soliciting Pre-Paid’s associates or using any of Pre-Paid’s trade secrets. The TRO was set to remain in effect until October 21, 2011, when a hearing was scheduled on Pre-Paid’s request for a preliminary injunction. Before the hearing could occur, Kidd removed the case to federal district court and, on October 14, 2011, filed a motion to stay the action pending arbitration. On October 19, 2011, the district court granted Pre-Paid’s request to extend the TRO until a ruling was made on Kidd’s motion to stay. The agreements between Kidd and Pre-Paid contained broad arbitration provisions that required arbitration of any disputes between them in accordance with the rules of the American Arbitration Association (AAA). Pre-Paid did not contest the arbitrability of the dispute but urged the court to rule on Pre-Paid’s request for a preliminary injunction.

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Holding and Reasoning (Seay, J.)

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