CARBON FIBER RECYCLING, LLC v. TIMOTHY SPAHN

A Tennessee LLC sued one of its members seeking injunctive relief, monetary damages, and his expulsion as an LLC member. The trial court issued a temporary restraining order restraining the defendant from misappropriating, using, or disclosing the LLC’s trade secrets and confidential and proprietary business information.  The defendant moved to dismiss the complaint and dissolve the temporary restraining order based upon an arbitration provision, a choice of law provision, and a forum selection clause contained in the LLC’s operating agreement.  The trial court granted the defendant’s motion and held that it lacked jurisdiction and venue based on the forum selection clause and that the LLC failed to state a claim upon which relief could be granted due to the arbitration provision.  We conclude that Tennessee law governs the operating agreement and affirm the trial court’s dismissal of the complaint based upon the arbitration provision. However, we reverse the trial court’s holding that it lacked jurisdiction and venue over the LLC’s claims for temporary injunctive relief.