Ocean Beauty Seafoods, LLC v. Pacific Seafood Group Acquisition Co.

MEMORANDUM

This is an appeal from the district court’s denial of a preliminary injunction motion brought by Pacific Seafood Group Acquisition Company, Inc. (“Pacific Seafood”). Pacific Seafood sought to enjoin a former employee, Michael Coulston (“Coulston”), from working for Ocean Beauty Seafoods, LLC (“Ocean Beauty”) under a non-compete clause (the “Non-Compete Clause”). Pacific Seafood also appeals the district court’s denial of its motion to supplement the record. We have jurisdiction under 28 U.S.C. § 1292 (a)(1). We vacate and remand.

1. We review a district court’s denial of a preliminary injunction motion for abuse of discretion. Shell Offshore, Inc. v. Greenpeace, Inc., 709 F.3d 1281, 1286 (9th Cir.2013). We review a district court’s legal conclusions de novo and its findings of fact for clear error. Alliance for the Wild Rockies v. Cottrell, 632 F.3d 1127, 1131 (9th Cir.2011). A district court abuses its discretion when it bases its decision on an erroneous legal standard or a clearly erroneous finding of fact. Id.

The district court committed factual and legal errors in finding that Pacific Seafood was not likely to succeed in enforcing the Non-Compete Clause under…