Court Opinion

ID: 9964063
Source: CourtListenerOpinion
Date Created: 2024-04-26 20:09:43.781698+00
Date Added: 2024-06-11T08:25:09.356024
License: Public Domain

Toptal, LLC v WorkGenius, Inc.
               2024 NY Slip Op 31406(U)
                     April 22, 2024
           Supreme Court, New York County
        Docket Number: Index No. 160750/2023
                   Judge: Judy H. Kim
Cases posted with a "30000" identifier, i.e., 2013 NY Slip
 Op 30001(U), are republished from various New York
 State and local government sources, including the New
  York State Unified Court System's eCourts Service.
 This opinion is uncorrected and not selected for official
                       publication.
                                                                                                                      INDEX NO. 160750/2023
  NYSCEF DOC. NO. 32                                                                                            RECEIVED NYSCEF: 04/22/2024

                                   SUPREME COURT OF THE STATE OF NEW YORK
                                             NEW YORK COUNTY
            PRESENT:             HON. JUDY H. KIM                                                 PART                              04
                                                                                       Justice
            ----------------------------------------------------------------- ----------------X   INDEX NO.          160750/2023
                TOPTAL, LLC,
                                                                                                  MOTION DATE         11/02/2023
                                                         Petitioner,
                                                                                                  MOTION SEQ. NO.         001
                                                 - V -

                WORKGENIUS, INC., SABAINA BUKHARI,                                                  DECISION + ORDER ON
                                                                                                          MOTION
                                                         Respondents.
            ------------------------------------------------------------------- --------------X

            The following e-filed documents, listed by NYSCEF document number (Motion 001) 15, 17, 18, 19, 20,
            21,22,23,24,25,26,27,28,29
            were read on this motion to                                                             COMPEL

                      Petitioner Toptal, LLC ("Toptal") moves, by order to show cause to compel respondent

            WorkGenius, Inc. ("WorkGenius") to comply with a subpoena issued by Judicial Arbitration &

            Mediation Services, Inc. ("JAMS") arbitrator Christopher M. Kwok (the "Arbitrator"), m an

            arbitration proceeding entitled Toptal, LLC v. Sabaina Bukhari 1 (the "Arbitration").

                      In that Arbitration, Toptal alleges that respondent Sabaina Bukhari was a former Toptal

            employee who violated the noncompete and non-solicitation provisions of her employment

            agreement with Toptal by leaving Toptal to work at its competitor-respondent WorkGenius-

            and, thereafter, soliciting at least one member of Toptal's "talent network," Carol Oblianda.

            WorkGenius is not a party to the Arbitration.

            1
              Another former Toptal employee, Yafim Strauss, was also named in this arbitration, though Toptal subsequently
            settled its claim against him on May 17, 2023.
                160750/2023 TOPTAL, LLC vs. WORKGENIUS, INC. ET AL                                                    Page 1 of 7
                Motion No. 001

                                                                            1 of 7
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                                                                                                 INDEX NO. 160750/2023
  NYSCEF DOC. NO. 32                                                                     RECEIVED NYSCEF: 04/22/2024

                   On September 25, 2023, the Arbitrator issued a subpoena to WorkGenius seeking the

            following:

                   1. All employment offer letters, employment agreements, stock options agreements
                   or applicable policies, bonus agreements or applicable policies, indemnity
                   agreements and any other agreements concerning the terms and conditions of
                   Bukhari's employment or any other engagement for WorkGenius, JBC, or any
                   WorkGenius or JBC subsidiaries or affiliate.

                   2. All documents concerning the job description(s) or duti(ies) for any position(s)
                   Ms. Bukhari held at WorkGenius, JBC, or any WorkGenius or JBC subsidiaries or
                   affiliates.

                   3. Bukhari's W-2 and all other tax documents and records from WorkGenius, JBC,
                   or any other entity that paid her for the year 2022.

                   4. All of Bukhari's paystubs from WorkGenius, JBC, or any other entity that paid
                   her for services or work performed during the Relevant Period.

                   5. A report of all individuals or entities Bukhari solicited on behalf of WorkGenius,
                   JBC, or any of their subsidiaries or affiliates to be employees, talent or customers,
                   including the gross revenues earned by WorkGenius, JBC, or any of their
                   subsidiaries or affiliates on account of such individuals or entities.

                   6. A report of all Toptal Personnel or Toptal Talent Bukhari solicited to perform
                   services or work for WorkGenius, JBC, or any of their subsidiaries or affiliates,
                   including the gross revenues earned by WorkGenius, JBC or any of their
                   subsidiaries or affiliates on account of such individuals.

                   7. A report that details any commissions or other monetary renumeration Bukhari
                   earned for the work or services she performed for WorkGenius, JBC, or any of their
                   subsidiaries or affiliates.

                   8. Copies of all Toptal Proprietary Information provided by Bukhari to
                   WorkGenius.

                   9. All communications between WorkGenius, JBC, or any of their subsidiaries or
                   affiliates and Bukhari concerning Toptal or this Proceeding.

                   10. All communications between WorkGenius, JBC, or any of their subsidiaries or
                   affiliates and Bukhari concerning or sharing Toptal Proprietary Information.

                   11. All communications between WorkGenius, JBC, or any of their subsidiaries or
                   affiliates and Bukhari concerning solicitations, discussions, negotiations, offers,
                   agreements or arrangements for Bukhari to provide services to WorkGenius or its

             160750/2023 TOPTAL, LLC vs. WORKGENIUS, INC. ET AL                                  Page 2 of 7
             Motion No. 001

                                                            2 of 7
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                                                                                                 INDEX NO. 160750/2023
  NYSCEF DOC. NO. 32                                                                     RECEIVED NYSCEF: 04/22/2024

                   affiliates (including without limitation JBC), whether as an employee, independent
                   contractor, consultant or in any other capacity.

                   12. All communications between WorkGenius, JBC, or any of their subsidiaries or
                   affiliates and Bukhari concerning solicitation of any individuals known to be
                   affiliated with Toptal based on her interactions with such individuals while
                   employed by Toptal, information Bukhari learned while at Toptal or information
                   available to Bukhari from Linkedln or other public sources.

                   13. All communications between any other employee or independent contractor of
                   WorkGenius, JBC or any of their subsidiaries or affiliates and Bukhari in which
                   Bukhari requested or suggested that such other person solicit any individual who
                   was a Toptal Talent or Toptal Personnel.

                   14. All communications between WorkGenius, JBC, or any of their subsidiaries or
                   affiliates and Bukhari concerning policies, protocols or strategies with respect to
                   soliciting, recruiting, interviewing and vetting processes for individuals who have
                   already been approved as Toptal Talent.

                   15. All communications with Bukhari regarding the voluntary or involuntary
                   termination of Bukhari's employment with WorkGenius or JBC, JBC, or any
                   affiliate or subsidiary of WorkGenius or JBC.

                   16. All communications amongst WorkGenius executives and/or employees
                   regarding the voluntary or involuntary termination of Bukhari's employment with
                   WorkGenius or JBC, JBC, or any affiliate or subsidiary of WorkGenius or JBC.

                   17. All communications with Bukhari concerning the transfer of Bukhari's
                   employment from WorkGenius to JBC as a result of this Proceeding or Order No.
                   2

                   18. All communications amongst WorkGenius executives and/or employees
                   concerning the transfer of Bukhari's employment from WorkGenius to JBC as a
                   result of this Proceeding or Order No. 2

                   19. All communications with Bukhari concerning this Proceeding or WorkGenius'
                   agreement to indemnify or defend claims by Toptal against Bukhari.

                   20. All communications amongst WorkGenius executives or employees concerning
                   this Proceeding or WorkGenius' agreement to indemnify or defend claims by
                   Toptal against Bukhari.

                   21. All records of payments made by WorkGenius, JBC, or any of their subsidiaries
                   or affiliates to Bukhari or on her behalf in connection with the duty to indemnify or
                   defend Bukhari.

             160750/2023 TOPTAL, LLC vs. WORKGENIUS, INC. ET AL                                  Page 3 of 7
             Motion No. 001

                                                            3 of 7
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                                                                                               INDEX NO. 160750/2023
  NYSCEF DOC. NO. 32                                                                    RECEIVED NYSCEF: 04/22/2024

                   22. All communications between Bukhari and WorkGenius, JBC, or any other
                   entity or individual concerning Order No. 2.

                   23. All communications amongst WorkGenius executives and/or employees
                   concerning Order No. 2.

                   24. All communications between Strauss and Bukhari concerning Toptal or this
                   Proceeding.

                   25. All communications between Strauss and Bukhari concerning Bukhari's
                   employment by WorkGenius, JBC, or any of their subsidiaries or affiliates.

                   26. All communications between Strauss and Bukhari concerning solicitation of
                   any Toptal Talent, Toptal Client, or Toptal Personnel.

                   27. All communications between Strauss and Bukhari concerning Oblianda.

                   28. All communications between Oblianda and Bukhari or Strauss.

                   29. All communications between Bukhari or Strauss and anyone affiliated with
                   WorkGenius, JBC, or any of their subsidiaries or affiliates regarding Oblianda.

                   30. All communications amongst WorkGenius executives and/or employees
                   regarding Oblianda.

                   31. The WorkGenius or JBC contract or offer letter sent by Bukhari to Oblianda.

                   32. All communications sent by Bukhari during the period of her employment by
                   WorkGenius, JBC, or any other entity to any Toptal Talent, Toptal Client, or Toptal
                   Personnel, including without limitation through Linkedln.

                   33. All communications sent by Bukhari during the period of her employment by
                   WorkGenius, JBC or any of their subsidiaries or affiliates to any of the persons
                   identified in Appendix 1, including without limitation through Linkedln.

                   34. A report of the gross revenues earned by WorkGenius, JBC, or any of their
                   subsidiaries or affiliates on account of their engagement of any of the persons
                   identified in Appendix 1.

                   35. All documents and communications concerning any compensation paid or to be
                   paid to you by WorkGenius, JBC, or any other entity to or on behalf of Bukhari
                   since the issuance of Order No. 2.

                   36. Documents evidencing the various industries and geographical covered by
                   Bukhari's position of Director of Talent Operations at WorkGenius.

             160750/2023 TOPTAL, LLC vs. WORKGENIUS, INC. ET AL                                 Page 4 of 7
             Motion No. 001

                                                            4 of 7
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                                                                                                  INDEX NO. 160750/2023
  NYSCEF DOC. NO. 32                                                                      RECEIVED NYSCEF: 04/22/2024

            (NYSCEF Doc. No. 2 [Subpoena]).

                   WorkGenius objected to this subpoena and refused to respond. As a result, petitioner

            commenced this special proceeding on December 2, 2023. In opposition, WorkGenius argues first

            that the Court lacks jurisdiction because the only mechanism by which Toptal may compel

            compliance with the subpoena is by petitioning the United States District Court for the Southern

            District of New York, but that even setting this aside, the petition must be denied because the

            documents sought in the subpoena are not material and necessary to the Arbitration as they either:

            (1) overlap with the documents already produced by Bukhari, (2) are already in Toptal's

            possession, or (3) are within Toptal's power to obtain without WorkGenius.

                                                        DISCUSSION

                   The petition is granted, in part.

                   As an initial matter, while petitioner characterizes its petition as seeking discovery in aid

            of arbitration pursuant to CPLR §3102, the procedural posture of this matter makes it clear that

            petitioner is, in fact, seeking an order compelling compliance with the Arbitration subpoena

            pursuant to CPLR §2308 (See ~ Tullett Prebon Fin. Services LLC v Tradition Asiel Sec., Inc.

            2013 WL 875780 [Sup Ct, NY County 2013]). As such, the relevant standard to be applied is

            whether the material sought in the subpoena is material and necessary for party discovery (See

            Matter of Kapon v Koch, 23 NY3d 32, 36 [2014]; see also Reuters Ltd. v Dow Jones Telerate,

            Inc., 231 AD2d 337, 345 [1st Dept 1997]) rather than "exceptional circumstances" in assessing

            the propriety of discovery pursuant to CPLR §3102 (See Howell v New York City Human

            Resources Admin., 112 Misc 2d 351, 353 [Sup Ct, NY County 1981] ["[s]ubpoenas are not

            disclosure devices and the principles applicable to disclosure in aid of arbitration have no bearing

            on a motion to compel under CPLR 2308(b)"], aff d as mod, 97 AD2d 352 [1st Dept 1983]).

             160750/2023 TOPTAL, LLC vs. WORKGENIUS, INC. ET AL                                   Page 5 of 7
             Motion No. 001

                                                            5 of 7
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                                                                                                                INDEX NO. 160750/2023
  NYSCEF DOC. NO. 32                                                                                   RECEIVED NYSCEF: 04/22/2024

                    Applying the material and necessary standard, the Court concludes that items 12, 13, 14

            and 26-32 are material and necessary insofar as they are relevant to petitioner's claims against

            Bukhari and it is undisputed that Bukhari does not have access to her work emails from her time

            at WorkGenius (See NYSCEF Doc. No 28 [November 13, 2023 letter]). However, the remainder

            of the items sought in the subpoena are either irrelevant or drastically overbroad (See ~ ' Hire

            Counsel New York LLC v Owens, 2012 NY Slip Op 32009[U] [Sup Ct, NY County 2012] [in

            action for breach of employment agreement, plaintiffs demands on its competitor, a non-party,

            for "emails, sales activity logs, call reports and agreements, concerning [competitor's] provision

            of any services" to various entities and individuals as well as all documents"[ c]oncerning income

            earned and profits received by [competitor] deriving from business services rendered to each of

            [these entities and individuals]" were stricken as overly broad or irrelevant]). Accordingly, the

            Court grants the petition only as to item numbers 12-14 and 26-32 of the subpoena2 (See CPLR

            §3103( a); see also Pepsi-Cola Bottling Co. of New York, Inc. v New York Pepsi-Cola Distributors

            Assn., Inc., 172 AD3d 540 [1st Dept 2019]).

                    Accordingly, it is

                     ORDERED and ADJUDGED that the petition is granted, in part, to the extent set forth

            above; and it is further

                     ORDERED that petitioner shall serve a copy of this decision, order, and judgment, with

            notice of entry, on respondents as well as on the Clerk of the Court (60 Centre St., Room 141B)

            2
              The Court is not persuaded by respondent's claim that the United States District Court for the Southern District of
            New York is the exclusive avenue for petitioner to pursue the relief sought herein. Respondent is correct that the
            arbitration agreement between petitioner and Bukhari is to be "governed and construed in accordance with the Federal
            Arbitration Act" (NYSCEF Doc. No. 6 [Mutual Arbitration Agreement at ,r 13]) and that the Federal Arbitration Act
            provides an avenue to enforce an arbitral subpoena (See 9 USC §7). However, the Federal Arbitration Act only
            preempts state law that "actually" conflicts with it (Gerling Global Reinsurance Corp. v. Home Ins. Co., 302 AD2d
            118, 125 [1st Dept 2002]) and, as nothing in the Federal Arbitration Act indicates that 9 USC §7 is the exclusive
            avenue to compel a response to an arbitral subpoena, the Court sees no conflict precluding this special proceeding.
             160750/2023 TOPTAL, LLC vs. WORKGENIUS, INC. ET AL                                                 Page 6 of 7
             Motion No. 001

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                                                                                                   INDEX NO. 160750/2023
  NYSCEF DOC. NO. 32                                                                        RECEIVED NYSCEF: 04/22/2024

            and the Clerk of the General Clerk's Office (60 Centre St., Room 119) within ten days of the date

            of this decision, order, and judgment; and it is further

                    ORDERED that such service upon the Clerk of the General Clerk's Office shall be made

            in accordance with the procedures set forth in the Protocol on Courthouse and County Clerk

            Procedures for Electronically Filed Cases (accessible at the "E-Filing" page on the court's website

            at the address www.nycourts.gov/supctmanh); and it is further

                    ORDERED that respondent shall, within thirty days of petitioner's service of a copy of

            this decision, order, and judgment, with notice of entry, produce all documents responsive to items

            12-14 and 26-32 of the subpoena duces tecum issued by Arbitrator Christopher M. Kwok on

            September 25. 2023; and it is further

                    ORDERED that the Clerk of the Court is directed to enter judgment accordingly.

                    This constitutes the decision, order, and judgment of the Court.

                     4/22/2024
                       DATE                                                     HON. JUDY H. KIM, J.S.C.
             CHECK ONE:                   CASE DISPOSED                 NON-FINAL DISPOSITION

                                          GRANTED         □ DENIED      GRANTED IN PART          □ OTHER
             APPLICATION :                SETTLE ORDER                  SUBMIT ORDER

             CHECK IF APPROPRIATE:        INCLUDES TRANSFER/REASSIGN    FIDUCIARY APPOINTMENT    □ REFERENCE

             160750/2023 TOPTAL, LLC vs. WORKGENIUS, INC. ET AL                                    Page 7 of 7
             Motion No. 001

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