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Pure Power Boot Camp, Inc. v. Warrior Fitness Boot Camp, LLC

813 F. Supp. 2d 489 (2011)

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Pure Power Boot Camp, Inc. v. Warrior Fitness Boot Camp, LLC

United States District Court for the Southern District of New York

813 F. Supp. 2d 489 (2011)

Facts

In 2006, Lauren Brenner (plaintiff) prepared to franchise her successful military-themed-gym concept, Pure Power Boot Camp, Inc. (Pure Power) (plaintiff). Brenner asked Pure Power’s instructors, including Dario Belliard (defendant), to sign employment agreements that prohibited disclosing Pure Power’s confidential information. The agreement did not specify that lost profits would be available for breach. In July of 2007, Belliard and another Pure Power instructor, Alexander Fell (defendant), decided to open their own military-themed gym, Warrior Fitness Boot Camp, LLC (Warrior Fitness) (defendant). Belliard stole Pure Power’s business plan, start-up manual, and operations manual and shared the materials with Fell and with Jennifer Lee (defendant), who used the materials to create Warrior Fitness’s business documents. Belliard also stole Pure Power’s customer list. Belliard and Fell stopped working at Pure Power in early 2008 and then opened Warrior Fitness. Brenner and Pure Power sued Belliard, Fell, Lee, and Warrior Fitness, alleging claims including breach of contract and breach of the duty of loyalty. Pure Power asserted that 147 former Pure Power clients had signed up for classes at Warrior Fitness but provided no evidence that the disclosure of Pure Power’s client list led to those signups. Pure Power sought damages including lost profits and disgorgement of Warrior Fitness’s profits from 2008 through 2010. Following a bench trial, the district court issued an opinion.

Rule of Law

Issue

Holding and Reasoning (Katz, J.)

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