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  • QUOTESTORM HOLDINGS, LLC VS PATRICK COOK ET AL Contract & Indebtedness document preview
  • QUOTESTORM HOLDINGS, LLC VS PATRICK COOK ET AL Contract & Indebtedness document preview
  • QUOTESTORM HOLDINGS, LLC VS PATRICK COOK ET AL Contract & Indebtedness document preview
  • QUOTESTORM HOLDINGS, LLC VS PATRICK COOK ET AL Contract & Indebtedness document preview
  • QUOTESTORM HOLDINGS, LLC VS PATRICK COOK ET AL Contract & Indebtedness document preview
  • QUOTESTORM HOLDINGS, LLC VS PATRICK COOK ET AL Contract & Indebtedness document preview
  • QUOTESTORM HOLDINGS, LLC VS PATRICK COOK ET AL Contract & Indebtedness document preview
  • QUOTESTORM HOLDINGS, LLC VS PATRICK COOK ET AL Contract & Indebtedness document preview
						
                                

Preview

Filing # 190780381 E-Filed 01/29/2024 06:04:23 PM IN THE CIRCUIT COURT OF THE ELEVENTH JUDICIAL CIRCUIT OF FLORIDA, IN AND FOR MIAMI-DADE COUNTY, FLORIDA QUOTESTORM HOLDINGS, LLC, a CIVIL DIVISION Delaware limited liability company, CASE NO. Plaintiff, vs. PATRICK COOK, an individual, and AFFLUENT ADS, LLC, a New Jersey limited liability company, d/b/a LEADNOMICS, Defendants, / VERIFIED COMPLAINT FOR DAMAGES AND INJUNCTIVE RELIEF COMES NOW the Plaintiff, QuoteStorm Holdings, LLC (“QuoteStorm”), by and through undersigned counsel, and files this Verified Complaint for Damages and Injunctive Relief against the Defendants Patrick Cook and Affluent Ads, LLC, d/b/a Leadnomics (“Leadnomics”) and alleges as follows: PARTIES, JURISDITION AND VENUE 1. This is an action for injunctive relief and for damages in excess of $50,000.00, exclusive of interest, attorneys’ fees and costs. 2. Plaintiff QuoteStorm is a Delaware limited liability company with its principal place of business in Miami-Dade County, Florida. 3. Defendant Patrick Cook (“Cook”) is an individual who resides in California. Cook Page 1 of 24 BALES SOMMERS & KLEIN, P.A. ONE BISCAYNE TOWER ♦ 2 SOUTH BISCAYNE BOULEVARD ♦ SUITE 1881 ♦ MIAMI, FLORIDA 33131 TELEPHONE (305) 372-1200 ♦ FACSIMILE (305) 372-9008 was employed by QuoteStorm from January 2, 2023 through August 7, 2023. 4. Defendant Leadnomics is a New Jersey limited liability company with its principal place of business in Philadelphia, Pennsylvania. Leadnomics has engaged in substantial and not isolated activity within the State of Florida, has operated, conducted, engaged in and carried on a business or business venture in the State of Florida, has committed tortious acts in the State of Florida and has breached a contract in the State of Florida. 5. Venue is proper in Miami-Dade County, Florida because the Employment Agreement between QuoteStorm and Cook at issue in this action provides for exclusive venue in Miami-Dade County, Florida and because the acts and omissions giving rise to the claims asserted herein occurred in Miami-Dade County, Florida. GENERAL ALLEGATIONS 6. QuoteStorm is in the business of providing performance marketing services to insurance professionals interested in marketing and/or selling insurance products and services. It purchases leads (which includes clicks, consumer-generated inbound calls and warm transfer calls) from vendors and in turn sells those leads to end user clients, typically insurance agents/brokers. 7. On or about January 5, 2023, QuoteStorm entered into a Master Services Agreement with Leadnomics pursuant to which Leadnomics would sell leads/calls to QuoteStorm. A copy of the Master Services Agreement is attached as Exhibit A. 8. On or about December 19, 2022, Cook was hired by QuoteStorm as Vice President of Partnerships (with a starting date of January 2, 2023). In this role, Cook was responsible for managing client and vendor relationships as well as new business development. 9. As a condition of his employment, Cook executed an Employment Agreement, a Page 2 of 24 BALES SOMMERS & KLEIN, P.A. ONE BISCAYNE TOWER ♦ 2 SOUTH BISCAYNE BOULEVARD ♦ SUITE 1881 ♦ MIAMI, FLORIDA 33131 TELEPHONE (305) 372-1200 ♦ FACSIMILE (305) 372-9008 copy of which is attached as Exhibit B. 10. Through his employment with QuoteStorm, Cook had access to all of QuoteStorm’s business operations, including but not limited to, customer names and information, marketing plans, product development, intellectual property, client telephone numbers, client Skype and email addresses, vendor lists, contracts and agreements, customer accounts, pricing and rate structure data, customer purchasing histories and preferences, and proprietary methods, processes and strategies for purchasing and selling leads (collectively referred to as the “Confidential Information”). This Confidential Information included QuoteStorm’s customer disposition records, from which it can be determined how leads purchased by QuoteStorm and sold to clients performed. 11. The Employment Agreement contains a “Confidentiality” clause which prohibits Cook from disclosing to others or using any Confidential Information (as defined in the Employment Agreement). See Employment Agreement at par. 5(a)(i)(ii) and (iii). This clause also requires Cook to return to QuoteStorm all Confidential Information provided to him by QuoteStorm. 12. The Employment Agreement contains a “Non-Competition” clause, which restricts Cook from competition for 2 years following his departure. This clause prohibits Cook from working, in any capacity, or becoming employed by any competitor of QuoteStorm or participating in any business or other endeavor that is in competition with QuoteStorm. See Employment Agreement at par. 5(b). 13. The Employment Agreement contains a “Non-Solicitation” clause which prohibits Cook from soliciting or inducing, or attempting to solicit or induce, divert or take away the Page 3 of 24 BALES SOMMERS & KLEIN, P.A. ONE BISCAYNE TOWER ♦ 2 SOUTH BISCAYNE BOULEVARD ♦ SUITE 1881 ♦ MIAMI, FLORIDA 33131 TELEPHONE (305) 372-1200 ♦ FACSIMILE (305) 372-9008 business of any QuoteStorm client or otherwise attempt to cause any QuoteStorm client to refrain from acquiring any QuoteStorm product or service. See Employment Agreement at par. 5(c). 14. The Employment Agreement contains a “Non-Solicitation of Employees” clause which prohibits Cook from, directly or indirectly, recruiting any QuoteStorm employee to discontinue his or her employment relationship with QuoteStorm, interfering with or attempting to disrupt any relationship between QuoteStorm and its employees, and soliciting or recruiting any employee for the purpose of being employed by any entity on whose behalf Cook is acting as an agent, representative or employee. See Employment Agreement at par. 5(c). 15. Cook agreed that violation of the above-referenced provisions would cause irreparable harm to Quotestorm for which Quotestorm “shall be entitled to obtain from any court of competent jurisdiction immediate injunctive relief and obtain a temporary order restraining any threatened or further breach as well as an equitable accounting of all profits or benefits arising out of such violation.” See Employment Agreement at par. 5(a)(i), 5(g). 16. The restrictions on the use of Quotestorm’s confidential information, on interfering with Quotestorm’s business relationships and with working for QuoteStorm’s clients and competitors were necessary due to Cook’s intimate knowledge of QuoteStorm’s business operations. 17. As an employee of Quotestorm, Cook was provided with unfettered access to: 1) client and vendor lists and information, including sales, pricing and client purchase information and history; 2) custom A.I. analytics and proprietary strategies, methods and processes for obtaining leads from Quotestorm vendors, including Leadnomics; 3) pricing of the purchase of leads from Quotestorm vendors, including Leadnomics, 4) pricing on the sale of those leads to Page 4 of 24 BALES SOMMERS & KLEIN, P.A. ONE BISCAYNE TOWER ♦ 2 SOUTH BISCAYNE BOULEVARD ♦ SUITE 1881 ♦ MIAMI, FLORIDA 33131 TELEPHONE (305) 372-1200 ♦ FACSIMILE (305) 372-9008 QuoteStorm clients; 5) the specific preferences and needs of QuoteStorm clients in terms of leads; and 6) information on the performance of leads purchased from vendors, including Leadnomics, and the sale of those leads to QuoteStorm clients. 18. Cook could use the foregoing knowledge and information to harm QuoteStorm by potentially causing QuoteStorm vendors or clients to reduce or eliminate their relationships with Quotestorm and, if Cook were to be employed or affiliated with a client or vendor, he could encourage that client or vendor to reduce or eliminate the relationship with QuoteStorm by causing vendors and clients to circumvent QuoteStorm as the “middleman” between vendor and client. As detailed below, that is exactly what happened. 19. Subsequent to Cook’s employment, in approximately May of 2023 QuoteStorm secured a new, large client, Enhance Health, an insurance brokerage that sells insurance products to individuals and entities. 20. Almost immediately, Enhance Health began buying a significant number of leads from QuoteStorm, which leads QuoteStorm would purchase from Leadnomics. By June/July of 2023, QuoteStorm was purchasing from Leadnomics and selling to Enhance Health over 200 leads per day. As a result, Quotestorm’s relationship with both Leadnomics and Enhance Health quickly became critically important and a major source of revenue for Quotestorm. 21. Shortly thereafter, as business was ramping up significantly with Leadnomics and Enhance Health, Cook abruptly resigned from employment with QuoteStorm. 22. Shortly after Cook’s resignation, QuoteStorm noticed changes in the leads being made available from Leadnomics. The quantity and quality of those leads began to decline appreciably in quality. Additionally, the leads became more expensive as QuoteStorm was forced Page 5 of 24 BALES SOMMERS & KLEIN, P.A. ONE BISCAYNE TOWER ♦ 2 SOUTH BISCAYNE BOULEVARD ♦ SUITE 1881 ♦ MIAMI, FLORIDA 33131 TELEPHONE (305) 372-1200 ♦ FACSIMILE (305) 372-9008 to pay more for the same or even lower quality leads. Finally, one of QuoteStorm’s clients, Insurance Line One, ceased doing business altogether with QuoteStorm approximately one week after Cook’s resignation. 23. Upon information and belief, after resigning from Quotestorm, Cook - in direct violation of the non-compete - began working with Leadnomics. Thereafter, Cook took action to cause the change in leads being presented by Leadnomics to QuoteStorm as described above and, further, began soliciting clients and vendors of QuoteStorm, including but not limited to, Enhance Health, Insurance Line One and Jet Media, to directly sell leads to those clients. In so doing, Cook, directly or indirectly, disclosed to Leadnomics the identities and contact information of QuoteStorm’s clients, along with other of QuoteStorm’s Confidential Information (i.e., pricing and performance data) which is presently being used by Cook and Leadnomics to obtain a competitive advantage over QuoteStorm. Additionally, upon information and belief, Cook solicited and has worked with other Quotestorm vendors (such as IDS Group and We Generate) and has solicited employees to leave QuoteStorm all in violation of the Employment Agreement. 24. The use of QuoteStorm’s Confidential Information by Leadnomics is prohibited by Paragraph 5(a) of the Master Services Agreement. In using Quotestorm’s Confidential Information Leadnomics has violated the Master Services Agreement, for which Quotestorm is entitled to injunctive relief pursuant to Paragraph 5(b) of the Master Services Agreement. 25. As a result of Cook’s actions in violation of the Employment Agreement, and Leadnomics violation of the Master Services Agreement, QuoteStorm has lost a significant volume of business and suffered substantial financial damage. Page 6 of 24 BALES SOMMERS & KLEIN, P.A. ONE BISCAYNE TOWER ♦ 2 SOUTH BISCAYNE BOULEVARD ♦ SUITE 1881 ♦ MIAMI, FLORIDA 33131 TELEPHONE (305) 372-1200 ♦ FACSIMILE (305) 372-9008 COUNT I – INJUNCTIVE RELIEF TO ENFORCE COVENANTS NOT TO COMPETE AND FOR NON-SOLICITATION PURSUANT TO SEC.542.335, FLORIDA STATUTES AS TO COOK 26. Plaintiff re-states and incorporates paragraphs 1 to 25 above, as if stated herein in full. 27. This is an action by QuoteStorm against Cook for preliminary and permanent injunctive relief to enjoin Cook from continued violation of the non-compete and non-solicitation provisions of his Employment Agreement. 28. Cook executed the Employment Agreement as consideration for employment by QuoteStorm. The Employment Agreement contains a “Non-Competition” clause, which restricts Cook from competition for 2 years following his departure (unless terminated by QuoteStorm without cause). This clause prohibits Cook from working, in any capacity, or becoming employed by any competitor of QuoteStorm or participating in any business or other endeavor that is in competition with QuoteStorm. 29. Cook’s Employment Agreement contains a “Non-Solicitation” clause which prohibits Cook from soliciting or inducing, or attempting to solicit or induce, divert or take away the business of any QuoteStorm client or otherwise attempt to cause any QuoteStorm client to refrain from acquiring any Quotestrom product or service. 30. The Employment Agreement contains a “Confidentiality” clause which prohibits Cook from disclosing to others or using any of QuoteStorm’s Confidential Information (as defined in the Employment Agreement). See Employment Agreement at par. 5(a)(i)(ii) and (iii). Page 7 of 24 BALES SOMMERS & KLEIN, P.A. ONE BISCAYNE TOWER ♦ 2 SOUTH BISCAYNE BOULEVARD ♦ SUITE 1881 ♦ MIAMI, FLORIDA 33131 TELEPHONE (305) 372-1200 ♦ FACSIMILE (305) 372-9008 31. In exchange for agreeing to the restrictions, Cook was hired by QuoteStorm and continued to be employed by QuoteStorm. 32. The foregoing restrictions are necessary, reasonable and supported by adequate consideration. 33. The Employment Agreement contemplates the protection of QuoteStorm’s legitimate business interests, including but not limited to, QuoteStorm’s client and vendor lists and information, including sales, pricing and purchase information and histories; strategies, methods and processes for obtaining leads from QuoteStorm vendors, including Leadnomics; pricing of the purchase of leads from QuoteStorm vendors, including Leadnomics, pricing on the sale of those leads to QuoteStorm clients, including Enhance Health; the specific preferences and needs of QuoteStorm clients in terms of leads, including Enhance Health, information on the performance of leads purchased from vendors, including Leadnomics, and the sale of those leads to QuoteStorm clients, including Enhance Health. 34. QuoteStorm’s has legitimate business interests in these areas, which constitute QuoteStorm’s protected trade secrets. 35. Each of the foregoing restrictions contained in the Employment Agreement are reasonable and necessary to protect QuoteStorm’s legitimate business interests, including its Confidential Information and substantial relationships with vendors and clients. 36. Following his resignation from Quotestorm, Cook began working Leadnomics. Cook’s employment with Leadnomics is in direct violation of the non-compete, non-solicitation and confidentiality provisions of the Employment Agreement. Page 8 of 24 BALES SOMMERS & KLEIN, P.A. ONE BISCAYNE TOWER ♦ 2 SOUTH BISCAYNE BOULEVARD ♦ SUITE 1881 ♦ MIAMI, FLORIDA 33131 TELEPHONE (305) 372-1200 ♦ FACSIMILE (305) 372-9008 37. On information and belief, following Cook’s employment with Leadnomics, Leadnomics is now selling leads directly to QuoteStorm’s clients, including Enhance Health and others. All such sales are inevitably informed by – and therefore inevitably made using and disclosing – QuoteStorm’s Confidential Information. Cook has violated the confidentiality provision of the Employment Agreement by using information gained as a result of his employment with QuoteStorm to benefit Leadnomics, a competitor selling directly to QuoteStorm’s client(s). 38. In the Employment Agreement, Cook acknowledged and agreed that QuoteStorm’s Confidential Information “is of great competitive importance and commercial value to the Company, and that improper use or disclosure of the Confidential Information will cause irreparable harm to the Company, for which remedies at law will not be adequate.” See Employment Agreement at 5 (a)(i). Additionally, Cook agreed that QuoteStorm is entitled to an equitable accounting of all profits or benefits arising from any violation of the restrictive covenants contained in the Employment Agreement. See Employment Agreement at 5 (g). QuoteStorm is entitled to temporary and permanent injunctive relief pursuant to the terms of the Employment Agreement and Florida common law to prevent continuing and future irreparable harm by Cook. 39. Based on the clear, unambiguous terms of the Employment Agreement, QuoteStorm has a clear legal right to an injunction. 40. As a result of the irreparable injury and harm detailed above, QuoteStorm lacks an adequate remedy at law. 41. Having a vested interest in ensuring the sanctity of contracts, entering the requested injunction will serve the public interest. Page 9 of 24 BALES SOMMERS & KLEIN, P.A. ONE BISCAYNE TOWER ♦ 2 SOUTH BISCAYNE BOULEVARD ♦ SUITE 1881 ♦ MIAMI, FLORIDA 33131 TELEPHONE (305) 372-1200 ♦ FACSIMILE (305) 372-9008 42. QuoteStorm has a substantial likelihood of success on the merits of this cause. 43. Unless Cook and those who are in active concert or participation with him are enjoyed against violation of the Employment Agreement, QuoteStorm will suffer irreparable harm in the form of, among other things, 1) use and/or disclosure of Confidential Information, financial information and other confidential and proprietary information that is the property QuoteStorm; 2) present economic loss, which is unascertainable at this time, and future economic loss, which is incalculable; and 3) loss of customer goodwill, damage to customer relationships, loss of market position and reputation in the industry and damage to its valuable competitive advantage – all of which cannot be compensated by an award of damages. WHEREFORE, QuoteStorm requests that this Court enter judgment: a) Temporarily and permanently enjoining Cook, and all those acting in active concert or participation with him in violation of his Employment Agreement, from the following: 1) Directly or indirectly competing with QuoteStorm; 2) Using or disclosing QuoteStorm’s Confidential Information; 3) Directly or indirectly selling leads to Enhance Health, Insurance Line One, Jet Media and any other of QuoteStorm’s clients; 4) Directly or indirectly soliciting QuoteStorm’s clients or vendors; 5) Directly or indirectly soliciting QuoteStorm’s employees; 6) Requiring Cook to return all documents or materials containing QuoteStorm’s Confidential Information; Page 10 of 24 BALES SOMMERS & KLEIN, P.A. ONE BISCAYNE TOWER ♦ 2 SOUTH BISCAYNE BOULEVARD ♦ SUITE 1881 ♦ MIAMI, FLORIDA 33131 TELEPHONE (305) 372-1200 ♦ FACSIMILE (305) 372-9008 7) Requiring the return of QuoteStorm’s Confidential Information from all those persons/entities to whom Cook has provided such information including, but not limited to, Leadnomics; 8) Ordering an equitable accounting of all revenue, profits or benefits arising from Cook’s breaches of the Employment Agreement; 9) Awarding QuotesStorm its attorneys’ fees and costs pursuant to the Employment Agreement and Florida Statutes; and 10) Granting such other relief as the Court deems appropriate. COUNT II –BREACH OF CONTRACT AS TO COOK 44. QuoteStorm re-states and incorporates paragraphs 1 to 25 above, as if stated herein in full. 45. This is an action by QuoteStorm against Cook for breach of the Employment Agreement. 46. Cook executed the Employment Agreement as consideration for employment by QuoteStorm. The Employment Agreement contains a “Non-Competition” clause, which restricts Cook from competition for 2 years following his departure (unless terminated by QuoteStorm without cause). This clause prohibits Cook from working, in any capacity, or becoming employed by any competitor of QuoteStorm or participating in any business or other endeavor that is in competition with QuoteStorm. 47. Cook’s Employment Agreement contains a “Non-Solicitation” clause which prohibits Cook from soliciting or inducing, or attempting to solicit or induce, divert or take away Page 11 of 24 BALES SOMMERS & KLEIN, P.A. ONE BISCAYNE TOWER ♦ 2 SOUTH BISCAYNE BOULEVARD ♦ SUITE 1881 ♦ MIAMI, FLORIDA 33131 TELEPHONE (305) 372-1200 ♦ FACSIMILE (305) 372-9008 the business of any QuoteStorm client or otherwise attempt to cause any QuoteStorm client to refrain from acquiring any Quotestrom product or service. 48. The Employment Agreement contains a “Confidentiality” clause which prohibits Cook from disclosing to others or using any Confidential Information (as defined in the Employment Agreement). See Employment Agreement at par. 5(a)(i)(ii) and (iii). 49. In exchange for agreeing to the restrictions, Cook was hired by QuoteStorm and continued to be employed by QuoteStorm. 50. Cook has breached the non-compete provision of the Employment Agreement by working with Leadnomics, who is in direct competition with QuoteStorm. 51. Cook has breached the non-solicitation provisions of the Employment Agreement by soliciting QuoteStorm clients and vendors, including but not limited to Enhance Health, Jet Media, Insurance Line One and others, and by causing Leadnomics to refrain from doing business with QuoteStorm. Cook has further breached the non-solicitation provisions of the Employment Agreement by soliciting QuoteStorm employees. 52. Cook has breached the confidentiality provisions of the Employment Agreement by disclosing and using QuoteStorm’s Confidential Information for his own benefit and for the benefit of Leadnomics and others. 53. As a result of Cook’s breaches of the Employment Agreement, QuoteStorm has suffered damages. Page 12 of 24 BALES SOMMERS & KLEIN, P.A. ONE BISCAYNE TOWER ♦ 2 SOUTH BISCAYNE BOULEVARD ♦ SUITE 1881 ♦ MIAMI, FLORIDA 33131 TELEPHONE (305) 372-1200 ♦ FACSIMILE (305) 372-9008 WHEREFORE, QuoteStorm requests that this Court enter judgment in favor of QuoteStorm, award attorneys’ fees and costs pursuant to the Employment Agreement and grant such other relief as the Court deems appropriate. COUNT III – INJUNCTIVE RELIEF – MISAPPROPRIATION OF TRADE SECRETS PURSUANT TO SEC.688.001, FLORIDA STATUTES AS TO COOK AND LEADNOMICS 54. Plaintiff re-states and incorporates paragraphs 1 to 25 above, as if stated herein in full. 55. This is an action against Cook and Leadnomics for preliminary and permanent injunctive relief to enjoin Cook and Leadnomics’ misappropriation of trade secrets pursuant to Section 688.003, Florida Statutes. 56. QuoteStorm’s client and vendor lists and information, including sales, pricing and purchase information and histories; proprietary strategies, methods and processes for obtaining leads from QuoteStorm vendors; pricing of the purchase of leads from QuoteStorm vendors, pricing on the sale of those leads to QuoteStorm clients, client distribution reports and other data were developed over a long period of time and were developed at great expense and time. 57. The foregoing constitutes QuoteStorm trade secrets and QuoteStorm has taken all reasonable steps to protect and maintain these trade secrets. 58. Cook had access to the trade secrets only by virtue of his employment with QuoteStorm and was obligated to maintain this information as confidential. 59. The Employment Agreement contains a “Confidentiality” clause which prohibits Cook from disclosing to others or using QuoteStorm’s trade secrets. Page 13 of 24 BALES SOMMERS & KLEIN, P.A. ONE BISCAYNE TOWER ♦ 2 SOUTH BISCAYNE BOULEVARD ♦ SUITE 1881 ♦ MIAMI, FLORIDA 33131 TELEPHONE (305) 372-1200 ♦ FACSIMILE (305) 372-9008 60. The Master Services Agreement contains a “Confidentiality” provision which prohibits the use of QuoteStorm’s trade secrets by Leadnomics and entitles QuotesStorm to injunctive relief for a violation of this provision. 61. Cook has taken, used and disclosed to Leadnomics QuoteStorm’s trade secrets and Leadnomics has used those trade secrets to obtain an unfair competitive advantage over QuoteStorm. The circumstances are such that Leadnomics knew or should have known this to be the case. 62. Upon information and belief, Leadnomics has encouraged and enticed Cook (and possibly other QuoteStorm employees) to misappropriate QuoteStorm’s trade secrets. 63. The use and disclosure of QuoteStorm’s trade secrets was unlawfully done without the consent of QuoteStorm in direct violation of Florida Statues, Sec. 688.01, et. seq. 64. QuoteStorm has and will continue to suffer irreparable harm as a direct and proximate result of Cook and Leadnomics’ unlawful and unauthorized misappropriation of QuoteStorm’s trade secrets. 65. The use by Cook and Leadnomics of QuoteStorm’s trade secrets constitutes a continuing harm entitling QuoteStorm to injunctive relief. 66. QuoteStorm has no adequate remedy at law. 67. QuoteStorm has a substantial likelihood of success on the merits of this action. 68. A permanent injunction will serve the public interest. WHEREFORE, QuoteStorm demand judgment against Cook and Leadnomics for: Page 14 of 24 BALES SOMMERS & KLEIN, P.A. ONE BISCAYNE TOWER ♦ 2 SOUTH BISCAYNE BOULEVARD ♦ SUITE 1881 ♦ MIAMI, FLORIDA 33131 TELEPHONE (305) 372-1200 ♦ FACSIMILE (305) 372-9008 b) The issuance of a temporary injunction enjoining Cook, Leadnomics and all those acting in active concert or participation with them from misappropriating, using or disclosing QuoteStorm’s trade secrets in violation of Section 688.001, et. seq. Fla. Stat.; c) The issuance of a permanent injunction enjoining Cook, Leadnomics and all those acting in active concert or participation with them from misappropriating, using or disclosing QuoteStorm’s trade secrets in violation of Section 688.001, et. seq. Fla. Stat.; d) An award of attorneys’ fees and costs pursuant to Section 688.001, et. seq. Fla. Stat., pursuant to the Employment Agreement and pursuant to the Master Services Agreement; e) An accounting of Leadnomics profits and an amount equal to any such profits realized by Defendants as a result of the misappropriation of QuoteStorm’s trade secrets. f) Such other relief as the Court deems appropriate. COUNT IV – DAMAGES – MISAPPROPRIATION OF TRADE SECRETS PURSUANT TO SEC.688.001, FLORIDA STATUTES AS TO COOK AND LEADNOMICS 69. Plaintiff re-states and incorporates paragraphs 1 to 25 and 54-59 above, as if stated herein in full. 70. The acquisition and use of QuoteStorm’s trade secrets was done unlawfully and without the consent of QuoteStorm in violation of Section 688.001, et. seq. Fla. Stat. Page 15 of 24 BALES SOMMERS & KLEIN, P.A. ONE BISCAYNE TOWER ♦ 2 SOUTH BISCAYNE BOULEVARD ♦ SUITE 1881 ♦ MIAMI, FLORIDA 33131 TELEPHONE (305) 372-1200 ♦ FACSIMILE (305) 372-9008 71. QuoteStorm has suffered damages as a direct and proximate result of Cook and Leadnomics’ misappropriation of QuoteStorm’s trade secrets. 72. The misappropriation and use by Cook and Leadnomics of QuoteStorm’s trade secrets was willfull and malicious entitling QuoteStorm to exemplary damages and punitive damages which will be sought as required by Section 768.72, Florida Statutes. WHEREFORE, QuoteStorm requests that this Court enter judgment for damages in favor of QuoteStorm, award attorneys’ fees and costs pursuant Sec. 688.005, Florida Statutes, and grant such other relief as the Court deems appropriate. COUNT V –BREACH OF CONTRACT AS TO LEADNOMICS 73. QuoteStorm re-states and incorporates paragraphs 1 to 25 above, as if stated herein in full. 74. This is an action by QuoteStorm against Leadnomics for breach of the Master Services Agreement. 75. QuoteStorm and Leadnomics are parties to a Master Services Agreement. The Master Services Agreement contains a “Confidentiality” provision which prohibits the use of QuoteStorm’s Confidential Information by Leadnomics. 76. Leadnomics has breached the Master Services Agreement by using QuoteStorm’s Confidential Information. 77. More specifically, Leadnomics has used QuoteStorm’s Confidential Information - which it obtained though business dealings with QuoteStorm and from its wrongful employment of Cook in violation of Cook’s Employment Agreement - to sell leads directly to QuoteStorm’s Page 16 of 24 BALES SOMMERS & KLEIN, P.A. ONE BISCAYNE TOWER ♦ 2 SOUTH BISCAYNE BOULEVARD ♦ SUITE 1881 ♦ MIAMI, FLORIDA 33131 TELEPHONE (305) 372-1200 ♦ FACSIMILE (305) 372-9008 clients including but not limited to, Enhance Health. 78. As a result of Leadnomics’ breach of the Master Services Agreement, QuoteStorm has suffered damages. WHEREFORE, QuoteStorm requests that this Court enter judgment in favor of QuoteStorm, award attorneys’ fees and costs pursuant to the Master Services Agreement and grant such other relief as the Court deems appropriate. COUNT VI –INJUNCTIVE RELIEF AS TO LEADNOMICS 79. QuoteStorm re-states and incorporates paragraphs 1 to 25 above, as if stated herein in full. 80. This is an action by QuoteStorm against Leadnomics for injunctive relief pursuant to the Master Services Agreement. 81. QuoteStorm and Leadnomics are parties to a Master Services Agreement. The Master Services Agreement contains a “Confidentiality” provision which prohibits the use of QuoteStorm’s Confidential Information by Leadnomics. 82. Leadnomics has breached the Master Services Agreement by using QuoteStorm’s Confidential Information. 83. More specifically, Leadnomics has used QuoteStorm’s Confidential Information - which it obtained though business dealings with QuoteStorm and from its wrongful employment of Cook in violation of Cook’s Employment Agreement - to sell leads directly to QuoteStorm’s clients including but not limited to, Enhance Health. 84. Paragraph 5(b) of the Master Services Agreement provides that “[b]reach of Page 17 of 24 BALES SOMMERS & KLEIN, P.A. ONE BISCAYNE TOWER ♦ 2 SOUTH BISCAYNE BOULEVARD ♦ SUITE 1881 ♦ MIAMI, FLORIDA 33131 TELEPHONE (305) 372-1200 ♦ FACSIMILE (305) 372-9008 confidentiality may cause irreparable harm and therefore, in addition to all other remedies available at law or in equity, the injured party shall have the right to seek equitable and injunctive relief, without the need to post a bond….” 85. As a result of Leadnomics’ breach of the Master Services Agreement, QuoteStorm has and will continue to suffer irreparable harm for which it has no adequate remedy at law. 86. QuoteStorm has a substantial likelihood of success on the merits and an injunction will serve the public interest. WHEREFORE, QuoteStorm demand judgment against Cook and Leadnomics for: a) The issuance of a temporary injunction enjoining Leadnomics and all those acting in active concert or participation with them, from using or disclosing QuoteStorm’s Confidential Information; b) The issuance of a permanent injunction enjoining Leadnomics and all those acting in active concert or participation with them, from using or disclosing QuoteStorm’s Confidential Information; c) An award of attorneys’ fees and costs pursuant to the Master Services Agreement; d) An accounting of Leadnomics profits and an amount equal to any such profits realized as a result of the unauthorized use of QuoteStorm’s Confidential Information; e) Such other relief as the Court deems appropriate. Page 18 of 24 BALES SOMMERS & KLEIN, P.A. ONE BISCAYNE TOWER ♦ 2 SOUTH BISCAYNE BOULEVARD ♦ SUITE 1881 ♦ MIAMI, FLORIDA 33131 TELEPHONE (305) 372-1200 ♦ FACSIMILE (305) 372-9008 COUNT VII – INJUNCTIVE RELIEF – MISAPPROPRIATION OF TRADE SECRETS PURSUANT TO TITLE 6 DE CODE, SEC. 2002 AS TO LEADNOMICS 84. Plaintiff re-states and incorporates paragraphs 1 to 25 above, as if stated herein in full. 85. This is an action against Leadnomics for preliminary and permanent injunctive relief to enjoin Leadnomics’ misappropriation of trade secrets pursuant to Title 6 DE Code, Sec. 2002. 86. QuoteStorm’s client and vendor lists and information, including sales, pricing and purchase information and histories; proprietary strategies, methods and processes for obtaining leads from QuoteStorm vendors; pricing of the purchase of leads from QuoteStorm vendors, pricing on the sale of those leads to QuoteStorm clients, client distribution reports and other data were developed over a long period of time and were developed at great expense and time. 87. The foregoing constitutes QuoteStorm trade secrets and QuoteStorm has taken all reasonable steps to protect and maintain these trade secrets. 88. Cook had access to the trade secrets only by virtue of his employment with QuoteStorm and was obligated to maintain this information as confidential. 89. The Employment Agreement contains a “Confidentiality” clause which prohibits Cook from disclosing to others or using QuoteStorm’s trade secrets. 90. The Master Services Agreement contains a “Confidentiality” provision which prohibits the use of QuoteStorm’s trade secrets by Leadnomics and entitles QuotesStorm to injunctive relief for a violation of this provision. 91. Cook has taken, used and disclosed to Leadnomics, QuoteStorm’s trade secrets. Page 19 of 24 BALES SOMMERS & KLEIN, P.A. ONE BISCAYNE TOWER ♦ 2 SOUTH BISCAYNE BOULEVARD ♦ SUITE 1881 ♦ MIAMI, FLORIDA 33131 TELEPHONE (305) 372-1200 ♦ FACSIMILE (305) 372-9008 Leadnomics has used those trade secrets to obtain an unfair competitive advantage over QuoteStorm. The circumstances are such that Leadnomics knew or should have known this to be the case. 92. Upon information and belief, Leadnomics has encouraged and enticed Cook (and possibly other QuoteStorm employees) to misappropriate QuoteStorm’s trade secrets. 93. The use and disclosure of QuoteStorm’s trade secrets by Leadnomics was unlawfully done without the consent of QuoteStorm. 94. QuoteStorm has and will continue to suffer irreparable harm as a direct and proximate result Leadnomics’ unlawful and unauthorized misappropriation of QuoteStorm’s trade secrets. 95. The use by Leadnomics of QuoteStorm’s trade secrets constitutes a continuing harm entitling QuoteStorm to injunctive relief. 96. QuoteStorm has no adequate remedy at law. 97. QuoteStorm has a substantial likelihood of success on the merits of this action. 98. A permanent injunction will serve the public interest. WHEREFORE, QuoteStorm demand judgment against Leadnomics for: a) The issuance of a temporary injunction enjoining Leadnomics and all those acting in active concert or participation with them from misappropriating, using or disclosing QuoteStorm’s trade secrets in violation of Title 6 DE Code, Sec. 2002; b) The issuance of a permanent injunction enjoining Leadnomics and all those acting Page 20 of 24 BALES SOMMERS & KLEIN, P.A. ONE BISCAYNE TOWER ♦ 2 SOUTH BISCAYNE BOULEVARD ♦ SUITE 1881 ♦ MIAMI, FLORIDA 33131 TELEPHONE (305) 372-1200 ♦ FACSIMILE (305) 372-9008 in active concert or participation with them from misappropriating, using or disclosing QuoteStorm’s trade secrets in violation of Title 6 DE Code, Sec. 2002; c) An award of attorneys’ fees and costs pursuant to Title 6 DE Code, Sec. 2004 and pursuant to the Master Services Agreement; d) An accounting of Leadnomics profits and an amount equal to any such profits realized by Defendants as a result of the misappropriation of QuoteStorm’s trade secrets; e) Such other relief as the Court deems appropriate. COUNT VIII – DAMAGES – MISAPPROPRIATION OF TRADE SECRETS PURSUANT TO TITLE 6 DE CODE, SEC. 2003 AS TO LEADNOMICS 99. Plaintiff re-states and incorporates paragraphs 1 to 25 and 80-87 above, as if stated herein in full. 100. The acquisition and use of QuoteStorm’s trade secrets was done unlawfully and without the consent of QuoteStorm. 101. QuoteStorm has suffered damages as a direct and proximate result of Leadnomics’ misappropriation of QuoteStorm’s trade secrets. 102. The misappropriation and use by Cook and Leadnomics of QuoteStorm’s trade secrets was willfull and malicious entitling QuoteStorm to exemplary damages which will be sought under 6 DE Code Sec. 2003. Page 21 of 24 BALES SOMMERS & KLEIN, P.A. ONE BISCAYNE TOWER ♦ 2 SOUTH BISCAYNE BOULEVARD ♦ SUITE 1881 ♦ MIAMI, FLORIDA 33131 TELEPHONE (305) 372-1200 ♦ FACSIMILE (305) 372-9008 WHEREFORE, QuoteStorm requests that this Court enter judgment for damages in favor of QuoteStorm, award attorneys’ fees and costs pursuant 6 DE Code, Sec. 2004, and grant such other relief as the Court deems appropriate. COUNT IX –TORTIOUS INTERFERENCE WITH A BUSINESS/CONTRACTUAL RELATIONSHIP AS TO COOK 103. QuoteStorm re-states and incorporates paragraphs 1 to 25 above, as if stated herein in full. 104. This is an action by QuoteStorm against Cook for tortious interference with a business/contractural relationship. 105. QuoteStorm had existing business/contractual relationships with its vendors and clients, including Leadnomics and Enhance Health. 106. QuoteStorm also had additional protections in place against solicitation of clients and vendors of QuoteStorm’s vendors and clients in the Employment Agreement, 107. Cook had knowledge of QuoteStorm’s business/contractual relationships with Leadnomics and Enhance Heath. 108. Cook intentionally and unjustifiably interfered with QuoteStorm’s relationships with its vendors and clients, including but not limited to Leadnomics, Enhance Health, Jet Media, Insurance Line One and others. 109. Cook’s interference was done with malice. 110. As a direct and proximate result of Cook’s wrongful interference, QuoteStorm has suffered damages. Page 22 of 24 BALES SOMMERS & KLEIN, P.A. ONE BISCAYNE TOWER ♦ 2 SOUTH BISCAYNE BOULEVARD ♦ SUITE 1881 ♦ MIAMI, FLORIDA 33131 TELEPHONE (305) 372-1200 ♦ FACSIMILE (305) 372-9008 WHEREFORE, QuoteStorm requests that this Court enter judgment in favor of QuoteStorm and against Cook, award attorneys’ fees and costs pursuant to the Employment Agreement and grant such other relief as the Court deems appropriate. COUNT X –TORTIOUS INTERFERENCE WITH A BUSINESS/CONTRACTUAL RELATIONSHIP AS TO LEADNOMICS 105. QuoteStorm re-states and incorporate paragraphs 1 to 25 above, as if stated herein in full. 106. This is an action by QuoteStorm against Leadnomics for tortious interference with a business/contractual relationship. 107. QuoteStorm had existing business/contractual relationships with its clients, including Enhance Health. 108. Leadnomics had knowledge of QuoteStorm’s business/contractual relationships with its clients, including Enhance Heath and others. 109. Leadnomics intentionally and unjustifiably interfered with QuoteStorm’s relationship with Enhance Health (and other QuoteStorm clients), which interference has caused a reduction in the business between QuoteStorm and Enhance Health and other QuoteStorm clients. 110. Leadnomics’ interference was done with malice. 111. As a direct and proximate result of the wrongful interference, QuoteStorm has suffered damages. Page 23 of 24 BALES SOMMERS & KLEIN, P.A. ONE BISCAYNE TOWER ♦ 2 SOUTH BISCAYNE BOULEVARD ♦ SUITE 1881 ♦ MIAMI, FLORIDA 33131 TELEPHONE (305) 372-1200 ♦ FACSIMILE (305) 372-9008