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TEMPORARY RESTRAINING ORDER

UNITED STATES DISTRICT COURT

WESTERN DISTRICT OF WASHINGTON

AT SEATTLE

_______________________________________)

RBC DAIN RAUSCHER INC., )

) No. C06-0481L

Plaintiff, ) 

v. )

) TEMPORARY RESTRAINING ORDER

STEVEN L. ALVORD and D.A. DAVIDSON )

& COMPANY, )

)

Defendants. )

_______________________________________)

This matter having come before the Court on plaintiff’s “Verified Complaint”

(Dkt. # 1) and the ex parte “Motion for Temporary Restraining Order, Order to Appear and

Show Cause Why Preliminary Injunction Should not Issue, Preliminary Injunction” (Dkt. # 2). 

Upon consideration of the record in this matter, the Court finds as follows:

1. Under Rule 10335 of the National Association of Securities Dealers Code of

Arbitration Procedure, RBC Dain has the express right to seek temporary injunctive relief from a

court of competent jurisdiction pending an arbitration hearing before a panel of duly-appointed

arbitrators. Authority to grant such relief is conferred on this Court pursuant to Fed. R. Civ. P.

65. 

2. RBC Dain has demonstrated a substantial likelihood of success on the merits of at

least one of its claims against both defendants.

3. The rights of RBC Dain with respect to its property, proprietary and confidential

Case 2:06-cv-00481-RSL Document 8 Filed 04/06/2006 Page 1 of 4

RBC Dain Rauscher Inc. v. Alvord et al Doc. 8

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TEMPORARY RESTRAINING ORDER -2-

information, competitive interests, and employment agreements with Alvord are being and will

continue to be violated by defendants unless they are restrained therefrom.

4. RBC Dain will suffer immediate and irreparable harm and loss if Alvord and D.A.

Davidson & Company are permitted to (a) misappropriate the property of RBC Dain to their

own use and benefit, or (b) solicit RBC Dain accounts, clients, and customers.

5. RBC Dain has no adequate remedy at law.

6. Greater injury will be inflicted upon RBC Dain by the denial of temporary injunctive

relief than would be inflicted upon defendants by the granting of such relief.

7. Defendants have received notice of RBC Dain’s verified complaint and motion and

have filed an “abbreviated memorandum in opposition.” Dkt. # 5. The Court has considered

defendants’ arguments and finds that the issuance of a temporary restraining order is necessary

to protect RBC Dain from the irreparable harm that would result from any improper use of RBC

Dain’s proprietary information between the signing of this Order and the date on which

defendants could be fully heard in opposition.

IT IS HEREBY ORDERED AND DECREED THAT:

1. A Temporary Restraining Order issue immediately and that security in the amount of

$25,000.00 be posted by plaintiff no later than April 10, 2006.

2. Defendants are enjoined and restrained, directly or indirectly, and whether alone or in

concert with others, including any officer, agent, representative, and/or employee of Alvord’s

new employer, D.A. Davidson & Company, until hearing and thereafter until further Order of

the Court from:

a. initiating any further contact or communication with any client of RBC Dain

whom Alvord served or whose name became known to Alvord while in the employ of RBC Dain

either for the purpose of advising said clients of his new affiliation or for the purpose of inviting,

encouraging, or requesting the transfer of any accounts or business from RBC Dain (excluding

members of Alvord’s immediate family);

Case 2:06-cv-00481-RSL Document 8 Filed 04/06/2006 Page 2 of 4
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TEMPORARY RESTRAINING ORDER -3-

b. accepting any business, including account transfers or the opening of new

accounts, from any clients with whom Alvord had any dealings whatsoever during his term of

employment with RBC Dain (excluding members of Alvord’s immediate family);

c. using, disclosing, or transmitting, for any purpose, information contained in the

records of RBC Dain or concerning its customers, including for purposes of soliciting or

accepting business or account transfers from any RBC Dain customer formerly serviced by

Alvord.

3. Defendants, and anyone acting in concert or participation with defendants who

receives actual notice of this Order, including any agent, employee, officer, or representative of

D.A. Davidson & Company, are further ordered to return to RBC Dain’s Bellingham,

Washington, office any and all records, documents, and/or information pertaining to RBC Dain

customers, whether in original, copied, computerized, handwritten, or any other form, and to

purge any such information that is not capable of being physically relinquished to RBC Dain

from their possession, custody, or control within twenty four (24) hours of service of this Order

upon defendants or their legal counsel.

4. This Order shall remain in full force and effect until such time as the Court

specifically orders otherwise.

5. The parties are granted leave to commence discovery, including depositions,

immediately in aid of preliminary injunction proceedings before the Court.

6. Pending a preliminary injunction hearing before the Court, and pursuant to the

requirements of sections 3 and 4 of the Federal Arbitration Act, 9 U.S.C. §§ 3 and 4, the parties

are directed to proceed expeditiously with an arbitration pursuant to Rule 10335 of the National

Association of Securities Dealers Code of Arbitration Procedure.

7. Defendants shall show cause before the Honorable Robert S. Lasnik on April 20,

2006, at 1:30 p.m. in Courtroom 15106 of the United States Courthouse, 700 Stewart Avenue,

Seattle, Washington, why a Preliminary Injunction should not be ordered according to the terms

Case 2:06-cv-00481-RSL Document 8 Filed 04/06/2006 Page 3 of 4
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TEMPORARY RESTRAINING ORDER -4-

and conditions set forth above. Defendants may file and serve a full written response to RBC

Dain’s verified complaint and motion no later than 4:30 p.m. on April 13, 2006. RBC Dain may

file and serve a written reply no later than 3:00 p.m. on April 19, 2006.

DATED this 6th day of April, 2006, at 1:00 p.m.

A

Robert S. Lasnik

United States District Judge

Case 2:06-cv-00481-RSL Document 8 Filed 04/06/2006 Page 4 of 4