Montway LLC d/b/a Montway Auto Transport v. Bryan Johnstone

Summary

The United States District Court for the Eastern District of Michigan partially grants and partially denies Montway LLC’s motion for a preliminary injunction against former employee Bryan Johnstone. The court declines to enforce the requested nationwide noncompete restriction but enjoins Johnstone from servicing or soliciting certain Montway customers and from using or disclosing Montway’s confidential information. The order requires Montway to post a $500 security bond and expires on July 28, 2026.

Holdings

1. Montway was not entitled to an injunction prohibiting Johnstone from working for ACI or any other competitor because the requested restraint was overbroad and Montway had not shown a sufficient likelihood of success on the merits.
2. Although the requested noncompete was overbroad, the court could impose a narrower interim restraint prohibiting Johnstone from servicing customers he previously worked on while employed by Montway.
3. Montway was entitled to preliminary injunctive relief enforcing the nonsolicitation and nondisclosure provisions.
4. Montway was required to post a $500 security bond.

Questions Presented

1. Whether Montway was entitled to a preliminary injunction enforcing the employment agreement's noncompete provision.
2. Whether Montway was entitled to a preliminary injunction prohibiting Johnstone from soliciting or servicing Montway customers he handled during his employment.
3. Whether Montway was entitled to a preliminary injunction prohibiting Johnstone from using or disclosing Montway's confidential information.
4. What security was required under Federal Rule of Civil Procedure 65(c), and whether Montway was entitled to attorneys' fees and costs for pursuing the injunction.

Disposition

other