Mastermind Involvement Mktg., Inc. v. Art Inst. of Atlanta, LLC

Citation: 389 F. Supp. 3d 1291Docket: CASE NO.: 1:19-CV-00839-TWT

Court: District Court, N.D. Georgia; July 11, 2019; Federal District Court

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Two motions from the AI Defendants—The Art Institute of Atlanta, LLC, and others—are addressed by the Court. The first motion seeks a preliminary injunction requiring Plaintiff MasterMind Involvement Marketing, Inc. to transfer control of sixteen disputed social media accounts back to the AI Defendants. The second motion requests to join The Arts Institutes International, LLC (AII) as a counterclaim plaintiff regarding the existing counterclaims against MasterMind. 

The Court grants both motions. It orders MasterMind to relinquish control and provide login information for the social media accounts to the AI Defendants and AII. Additionally, the Court allows AII to join the case as a counterclaim plaintiff and instructs the AI Defendants and AII to submit an Amended Answer and Counterclaims.

The background involves MasterMind suing the AI Defendants for payment related to social media marketing services performed under a contract with their former parent company, Dream Center Education Holdings, LLC. The AI Defendants counterclaimed against MasterMind for misappropriation of trade secrets, conversion, breach of fiduciary duty, negligence, and violations of the Computer Fraud and Abuse Act, stemming from MasterMind's retention of the social media accounts initially acquired through the contract. 

The Court finds that AII's joinder is appropriate under Rule 20(a)(1) because both AII and the AI Defendants share a joint claim against MasterMind arising from the same transaction, with common legal and factual issues.

AII is recognized as the owner of the social media accounts involved in the AI Defendants' counterclaims against MasterMind, necessitating AII's inclusion as a counterclaim plaintiff. The Court approves the AI Defendants' request to amend their Answer and Counterclaims to properly name AII. The Motion for Preliminary Injunction is treated as jointly filed by the AI Defendants and AII. For a preliminary injunction to be granted, the movants must demonstrate: (1) a substantial likelihood of success on the merits, (2) irreparable harm without the injunction, (3) the harm to the movants exceeds any harm to the opposing party, and (4) the injunction serves the public interest.

The Court finds that the AI Defendants and AII have a substantial likelihood of success on the counterclaim for conversion, as they possess valid legal title to the social media accounts, which are currently in MasterMind's possession. Demand for the return of the accounts was made, and MasterMind refused. The Court also determines that AII and the AI Defendants would suffer irreparable harm without the injunction due to their reliance on social media for business and marketing, which has negatively impacted their reputation. Lastly, the Court concludes that the potential harm to MasterMind from complying with the injunction is minimal compared to the harm AII and the AI Defendants would face without it.

An injunction is deemed to serve the public interest by allowing educational institutions to communicate openly with students and prospective students via social media. The Court orders MasterMind, along with its affiliates and employees, to deliver login information for sixteen specified social media accounts to the AI Defendants and AII by 3:30 p.m. EDT on July 12, 2019. This information must include usernames, email addresses, passwords, and any other necessary details for full access to the accounts. MasterMind is not required to provide access to its LastPass account or additional training to the AI Defendants or AII. The order was issued on July 11, 2019.