Mygym, LLC v. Engle

Full title: MYGYM, LLC, Plaintiff, v. VINCE ENGLE, Defendant. VINCE ENGLE…

Court: United States District Court, D. Utah, Northern Division

Date published: Dec 6, 2006

Facts

In April 2004, Vince Engle (who has been involved in the health and fitness industries since 1985) conceptualized a piece of health equipment that would become known as the MyGym Fitness System. In May 2004, he started building prototypes out of wood and PVC pipe in his garage, and during the summer of 2004, he further developed the exercise equipment. He also decided to use the term “MyGym” to name and market the equipment. In September 2004, he presented his ideas and latest prototype to businessmen Wayne Carlson and Dale Karren, both of whom allegedly signed confidentiality agreements.

The three men then agreed to form a company to undertake production and marketing of the equipment. They negotiated the percentage of interest each would receive in the company, with Mr. Engle accepting less than 51 percent control of the company in exchange for a smaller stake (he has a twenty-seven percent stake in the company now) and a six percent royalty calculated based on the company’s gross sales. In November 2004, they formed MyGym, Inc., which was then converted to a limited liability company in December 2004.

Issue

Decision

Mr. Engle has failed to meet the heavy burden applicable to preliminary injunctive relief.  While Mr. Engle may ultimately prevail on some, or perhaps even all, of his claims, he has not established irreparable harm. Further, consideration of the balance of the parties’ potential harms supports the conclusion that a preliminary injunction is inappropriate in this case.

ORDER

For the foregoing reasons, Mr. Engle’s Motion for Preliminary Injunction is denied, and Mr. Engle’s Motion to Strike Portions of the Declaration of Dale Karren is denied as moot.

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