West Series of Lockton Companies, LLC v. Eric Kaufman
CourtCourt of Appeals for the Eighth Circuit
Date FiledAugust 26, 2026
Docket24-1072, 24-1074
StatusPublished
đ° News Coverage: Read the LAWS.com news report on this case
Full Opinion
United States Court of Appeals
For the Eighth Circuit
___________________________
No. 24-1072
___________________________
West Series of Lockton Companies, LLC; Lockton Investment Advisors, LLC;
Lockton Investment Securities, LLC, formerly known as Lockton Financial
Advisors, LLC
Plaintiffs - Appellees
v.
Eric D. Kaufman
Defendant - Appellant
___________________________
No. 24-1074
___________________________
West Series of Lockton Companies, LLC; Lockton Investment Advisors, LLC;
Lockton Investment Securities, LLC, formerly known as Lockton Financial
Advisors, LLC; Lockton Partners, LLC
Plaintiffs - Appellees
v.
Sallie F. Giblin
Defendant â Appellant
___________________________
No. 24-3528
___________________________
West Series of Lockton Companies, LLC; Lockton Investment Advisors, LLC;
Lockton Investment Securities, LLC, formerly known as Lockton Financial
Advisors, LLC; Lockton Partners, LLC
Plaintiffs - Appellees
v.
Sallie F. Giblin
Defendant - Appellant
------------------------------
Bill Hardwick
Amicus on Behalf of Appellee(s)
___________________________
No. 25-1019
___________________________
West Series of Lockton Companies, LLC; Lockton Investment Advisors, LLC;
Lockton Investment Securities, LLC, formerly known as Lockton Financial
Advisors, LLC; Lockton Partners, LLC
Plaintiffs - Appellants
v.
Sallie F. Giblin
Defendant - Appellee
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------------------------------
Bill Hardwick
Amicus on Behalf of Appellant(s)
___________________________
No. 25-1278
___________________________
West Series of Lockton Companies, LLC; Lockton Investment Advisors, LLC;
Lockton Investment Securities, LLC, formerly known as Lockton Financial
Advisors, LLC
Plaintiffs - Appellees
v.
Eric D. Kaufman
Defendant - Appellant
------------------------------
Bill Hardwick
Amicus on Behalf of Appellee(s)
___________________________
No. 25-1369
___________________________
West Series of Lockton Companies, LLC; Lockton Investment Advisors, LLC;
Lockton Investment Securities, LLC, formerly known as Lockton Financial
Advisors, LLC
Plaintiffs - Appellants
v.
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Eric D. Kaufman
Defendant - Appellee
------------------------------
Bill Hardwick
Amicus on Behalf of Appellant(s)
____________
Appeals from United States District Court
for the Western District of Missouri - Kansas City
____________
Submitted: January 13, 2026
Filed: August 26, 2026
____________
Before SHEPHERD, ARNOLD, and ERICKSON, Circuit Judges.
____________
SHEPHERD, Circuit Judge.
Eric Kaufman and Sallie Giblin (collectively, Members) are former members
of various Missouri limited liability companies (collectively, Lockton). Lockton is
a commercial-insurance brokerage and consulting organization. The Members
entered into membership agreements when they acquired their Lockton interests.
The operative versions of these agreements contain Missouri forum-selection and
choice-of-law clauses. They also include covenants purporting to prohibit the
Members from soliciting Lockton customers. And these contracts require the
Members to follow Locktonâs operating agreements, which provide that Lockton
members may terminate their interests on 30 daysâ notice. But the Members left
Lockton, purporting to terminate their Lockton interests âeffective immediately,â
and went to work for Lockton competitor Alliant. Lockton sued the Members in
federal district court in Missouri, seeking to clarify and assert their contractual
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entitlements (the Federal Actions). The Members sued Lockton in California state
court, seeking to avoid their agreements (the California Actions).
The district court presiding over the Federal Actions granted summary
judgment in Locktonâs favor on several of its claims. It concluded that the Missouri
forum-selection and choice-of-law clauses were enforceable and that the Members
had breached the forum-selection clauses by suing Lockton in California. The
district court also held that the customer-nonsolicitation covenants were
enforceableâat least to the limited extent Lockton sought to enforce them.
On other issues, the district court held for the Members. It granted them
summary judgment on Locktonâs claims that they breached the notice provision in
Locktonâs operating agreements; it also granted them summary judgment on related
breach-of-fiduciary-duty claims. As to the Members individually, it granted
Kaufman summary judgment on Locktonâs claim that he had breached contract
provisions preventing him from soliciting Lockton members and employees
post-departure. And it granted Giblin summary judgment on Locktonâs claims that
she had breached her non-solicitation commitments and tortiously interfered with
Locktonâs customer relationships.
The district court awarded Lockton the attorneysâ fees it had incurred in
prosecuting the Federal Actions. But it declined to award Lockton the attorneysâ
fees it had incurred in defending the California Actions (either as attorneysâ fees
recoverable under the partiesâ contracts or as damages for breaches of the
forum-selection clauses). Instead, it awarded Lockton only nominal damages for the
Membersâ forum-selection-clause breaches. The district court also denied the
Membersâ requests for fees. The Members appeal and Lockton cross appeals. This
Court has jurisdiction to hear the partiesâ appeals and cross appeals under 28 U.S.C.
§ 1291.
We affirm the district courtâs decisions as to the enforceability of the
choice-of-law provisions, the enforceability and breaches of the forum-selection
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clauses, and the enforceability of the customer-nonsolicitation covenants. We
reverse the district courtâs judgments as to the Membersâ breaches of the operating
agreementsâ 30-day notice provision and the Membersâ breaches of fiduciary duties
and direct that the district court enter judgment in Locktonâs favor on these claims.
We vacate the nominal damages awards, and direct that on remand the district court
determine Locktonâs actual damages attributable to the Membersâ breaches of the
forum-selection clauses. And we affirm the district courtâs awards of fees and costs
to Lockton.
I.
Lockton is headquartered in Missouri. And its constituent LLCs that are
parties to these cases are all organized under Missouri law. Lockton provides its
services to customers through producer membersâwho hold profit-sharing interests
in its LLCsâand associatesâwho are Lockton employees. Lockton has over 100
offices worldwide. Each of its United States offices is linked to a particular âseries.â
Lockton tasks the producers in each series with managing and developing client
relationships.
The Members became Lockton producer members in 2007, when they entered
into member agreements with Locktonâs Pacific Series. 1 The Members also
executed member agreements with two other Lockton LLCsâLockton Investment
Advisors and Lockton Investment Securities (formerly known as Lockton Financial
Advisors). In 2017, Giblin became a producer partner, signing a further agreement
with a fourth Lockton LLCâLockton Partners, which afforded her additional
profit-sharing opportunities.
1
At the time, Locktonâs Pacific Series was known as the Southern California
Series of Lockton Companies, LLC. The Pacific Series was originally a party to
these cases. We granted a motion to substitute, so West Series of Lockton
Companies, LLC, now stands in the Pacific Seriesâ place.
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Before 2016, Locktonâs Pacific Series was domiciled in Illinois, and its
member agreement included Illinois choice-of-law and forum-selection provisions.
But in 2016, Lockton reorganized, and the Pacific Series redomiciled, becoming a
Missouri LLC. This reorganization came after Lockton lobbied Missouriâs
legislature for changes in Missouriâs LLC statutes in order to, as one member of the
Presidentâs Advisory Group responsible for negotiating the Agreements put it, make
Locktonâs restrictive âcovenant and other important provisions more friendly and
enforceable.â Following the reorganization, the Members executed amended
member agreements with the Pacific Series. The current versions of the Membersâ
agreements with the Pacific Series, Lockton Investment Advisors, and Lockton
Investment Securities (collectively with Giblinâs Lockton Partners agreement, the
Agreements), all include combined Missouri choice-of-law and forum-selection
clauses.
The combined forum-selection and choice-of-law provision in the Membersâ
Pacific Series Agreement reads:
Member and the Series agree that this Agreement shall be deemed to
have been made in the State of Missouri. This Agreement and all
disputes, claims or issues that in any way pertain to the interpretation,
validity or enforceability of, or otherwise arise out of or relate to this
Agreement, the Operating Agreement and/or Memberâs membership in
the Series, including, without limitation, any disputes, claims or issues
arising out of the rights and interests of the Other Series, Affiliates and
Lockton Entities as set forth herein, shall be subject to, governed by,
and construed in accordance with the laws of the State of Missouri
without reference to choice of laws, irrespective of the fact that one or
both of the parties now is or may become a resident of a different state.
Any action involving any disputes, claims or issues that in any way
pertain to the interpretation, validity or enforceability of, or otherwise
arise out of or relate to this Agreement, the Operating Agreement and/or
Memberâs membership in the Series, including, without limitation, any
disputes, claims or issues arising out of or relating to the rights and
interests of the Other Series, Affiliates and Lockton Entities as set forth
herein, shall be brought exclusively in any Federal Court in Kansas
City, Missouri or in the Circuit Court of Jackson County, Missouri;
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provided, however, the Series shall pay promptly, upon demand from
time-to-time by Member, reasonable out-of-pocket costs of travel to
attend proceedings in such forum. Such courts shall have exclusive
jurisdiction over these matters, and Member hereby agrees to be subject
to the personal jurisdiction of such courts. The parties hereto agree that
the provisions set forth in this Section . . . are fair and reasonable.
The other Agreements contain substantially similar provisions.
The Agreements also contain restrictive covenants purporting to prohibit the
Members from soliciting Locktonâs customers. The customer-nonsolicitation
covenant in the Membersâ Pacific Series Agreements reads:
While Member is a Producer Member of the Series and for a period of
two (2) years following the sale of Memberâs Producer Unit (which
occurs on the Buy-Sell Purchase Date):
(a) Member shall not, directly or indirectly, for himself or on
behalf of any other Person, solicit, induce, persuade or
encourage, or attempt to solicit, induce, persuade or encourage,
any of the Customer Accounts described below, if any such
Customer Account qualified as a Customer Account within the
six (6) month period immediately preceding the sale of
Memberâs Producer Unit, to reduce, terminate or transfer to a
competitor any products or services that are the same or
substantially similar to, or directly competitive with, the products
or services provided by the Series, the Other Series or any
Affiliate. Member shall not, directly or indirectly, for himself or
on behalf of any other Person, (i) accept, service, or work on, or
attempt or threaten to accept, service or work on, any such
competitive business from any of the Customer Accounts that
Member may not solicit, or (ii) in any way do business with any
of the Customer Accounts that Member may not solicit to the
extent such business is the same or substantially similar to that
provided by the Series, the Other Series or any Affiliate. The
Customer Accounts to which this restriction applies are:
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(1) any of the Customer Accounts of the Series (A)
produced by Member, (B) solicited by Member (in the
case of prospective Customer Accounts), (C) serviced by
Member, (D) for or about which Member acquired or had
access to Confidential Information, or (E) with which
Member has or had business contact; and,
(2) any of the other Customer Accounts of the Series; and,
(3) any of the Customer Accounts of the Other Series (A)
produced by Member, (B) solicited by Member (in the
case of prospective Customer Accounts), (C) serviced by
Member, (D) for or about which Member acquired or had
access to Confidential Information, or (E) with which
Member has or had business contact; and,
(4) any of the other Customer Accounts of the Other
Series; and,
(5) any of the Customer Accounts of any Affiliate (A)
produced by Member, (B) solicited by Member (in the
case of prospective Customer Accounts), (C) serviced by
Member, (D) for or about which Member acquired or had
access to Confidential Information, or (E) with which
Member has or had business contact.
The remaining Agreements contain or incorporate similar covenants. Kaufman
agreed that these covenants would bind him for two years after leaving Lockton.
When Giblin acquired her Lockton Partners interest and became a producer partner,
she agreed she would be bound for four years.
Moreover, the Agreements required the Members to comply with the Lockton
entitiesâ operating agreements. The operating agreements generally set forth
procedures by which membersâ Lockton interests âmayâ be terminated. 2 They
2
The Lockton Partners operating agreement does not include such termination
language.
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provide that producer members âmay be terminatedâ as members âby suchâ
members âon thirty (30) daysâ written notice.â They also list several mechanisms
through which Lockton may terminate membersâ membership interests.
Further, the Agreements entitle the âprevailing partyâ in disputes between
Lockton and the Members relating to their Lockton memberships to recover awards
of attorneysâ fees. The fees provision in the Pacific Series Agreement states in
relevant part that:
If any Lockton Entity or Member engages counsel in connection with
any action involving or seeking to resolve any dispute, claim or issue
that in any way pertains to the interpretation, validity or enforceability
of, or otherwise arises out of, or relates to, this Agreement, the
Operating Agreement and/or Memberâs membership in the Series,
including, without limitation, any action involving or seeking to resolve
any dispute, claim or issue arising out of the rights and interests of the
Other Series, Affiliates and Lockton Entities as set forth herein, the
prevailing party in any such action shall be entitled, in addition to any
other remedies set forth in this Agreement or otherwise available at law
or equity, to recover any and all reasonable costs and expenses incurred
in connection with such action, through all appeals, including
reasonable attorneysâ fees . . . .
Again, the other Agreements are similar. The Agreements also generally provide
that Lockton is entitled to money damages if the Members breach them.
The Membersâapparently both very successful producersâearned millions
of dollars under their contracts with Lockton. Over their 15 years as Lockton
producers, Giblin and Kaufman received approximately $15.7 million and $14.3
million in profit distributions, respectively. They also received significant
compensation when Lockton Investment Advisors sold assets in 2021âGiblin
earned roughly $600,000, and Kaufman roughly $2 million, from that sale. And
when the Members left Lockton in 2022, Lockton repurchased their interests. Giblin
will receive over $2 million and Kaufman will receive over $700,000 in
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compensation from these transactions (though these amounts are apparently subject
to potential offsets).
The Members lived in California during their tenures with Lockton. They
also primarily serviced California-based clients. But at times they worked with
Missouri-based teams and support staff, and incurred Missouri tax obligations
(which Lockton paid on their behalf).
On July 18, 2022, Kaufman informed Lockton via email that he was resigning
âeffective immediately.â Kaufman chose to leave Lockton after it sold a significant
portion of his book of business as part of its 2021 asset sales. He began working for
Alliant on or around July 20, 2022. Alliant competes with Lockton in the market for
insurance brokerage and consulting services.
On November 29, 2022, Giblin also notified Lockton that she was resigning
â[e]ffective immediately.â She began working for Alliant the same day. Giblin
alleges that she left Lockton after she was harassed and retaliated against because
she raised concerns about Locktonâs workplace culture and staffing procedures.
Kaufman sued Lockton in California state court on July 20, 2022. His
California suit seeks a declaration that the restrictive covenantsâalong with the
forum-selection and choice-of-law provisionsâin the Agreements are
unenforceable. Lockton filed its federal suit against Kaufman in Missouri the same
day. Locktonâs complaint against Kaufman asserts five counts for relief. Count I is
a claim for breach of contract (alleging breaches of the Agreements and operating
agreements). Count II is a claim for tortious interference with Locktonâs prospective
economic advantage and prospective business relationships. Count III is a claim for
breach of fiduciary duty and/or the duty of loyalty. Count IV is a claim for
misappropriation of trade secrets, in violation of the Missouri Uniform Trade Secrets
Act (MUTSA) and the Defend Trade Secrets Act (DTSA). Count V is a claim for
declaratory relief (seeking declarations that the Agreementsâ choice-of-law,
forum-selection, and non-solicitation provisions are enforceable).
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Lockton sued Giblin in federal district court in Missouri on November 30,
2022, asserting the same five claims it asserted against Kaufman. And Giblin sued
Lockton in California state court on December 22, 2022. Giblinâs California suit
seeks declarations that the restrictive covenants, forum-selection clauses, and
choice-of-law clauses in her Agreements are unenforceable. Giblin also asserts
claims for discrimination and retaliation.
Alliant is paying Membersâ attorneysâ fees in the Federal Actions. It is also
funding the California Actions.
In the Federal Actions, the Members filed motions to dismiss contending that
Locktonâs DTSA and MUTSA claims did not pass muster under Federal Rule of
Civil Procedure 12(b)(6). The district court denied these motions. And in the
California Actions, Lockton filed motions to dismiss invoking the Agreementsâ
forum-selection clauses. The courts adjudicating the California Actions, applying
California procedural law, denied Locktonâs motions. They reasoned that the
Membersâ claimsâwhich challenged covenants not to competeâimplicated
unwaivable California statutory rights, and that Lockton thus had to show that
requiring the Members to litigate their claims in Missouri would not diminish in any
way the substantive rights afforded under California law. The California courts
concluded that Lockton had not carried this burden because it had not shown the
Membersâ rights were the same or greater under Missouri law than under California
law.
After receiving an adverse ruling in California on its motion to dismiss
Giblinâs suit, Lockton moved for partial summary judgment in the Federal Actions
on its claims for declarations that the Agreementsâ forum-selection clauses were
enforceable. Lockton also moved the district court to certify any judgment it secured
on these claims as final under Federal Rule of Civil Procedure 54(b) and to enjoin
the California Actions.
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The district court, applying federal procedural law, concluded that the
forum-selection clauses were enforceable and granted Lockton partial summary
judgment on its claims for declarations that the clauses were enforceable. It also
certified its orders on these claims as final judgments. But it denied Locktonâs
requests to enjoin the California Actions.
The Members appealed the district courtâs partial summary judgment orders
on the enforceability of the forum-selection clauses. They argued that the district
court improperly certified these orders as final judgments and that the district court
erred in determining that the forum-selection clauses were enforceable. We
consolidated the Membersâ appeals and heard argument on November 19, 2024.
While the Members pursued their appeals on the forum-selection clausesâ
enforceability, the Federal Actions proceeded apace, reaching their conclusion
before we issued an opinion in the interlocutory appeals. The district court
ultimately resolved several claims via summary judgment rulings. It held that
Lockton was entitled to summary judgment on its claims that the Agreementsâ
choice-of-law and customer-nonsolicitation covenants were enforceableâthough,
in its summary judgment papers, Lockton requested only that the district court hold
its covenants were enforceable to a specific subset of Lockton customers with whom
the Members had personally dealt, and the district court only held that the
customer-nonsolicitation covenants were enforceable as so narrowed. It also held
that Lockton was entitled to summary judgment on its claims that the Members had
breached the Agreementsâ forum-selection clauses. But it concluded that Lockton
was entitled only to nominal damagesânot damages compensating Lockton for its
litigation expensesâfor these breaches. It reasoned that the Agreementsâ
fee-shifting provisions governed, and that Lockton could seek its attorneysâ fees in
a follow-on fees motion after its suits had concluded.
The district court granted summary judgment in the Membersâ favor on
Locktonâs claims that they had breached the operating agreements by failing to give
30 daysâ notice of their departure and breached their fiduciary duties by going to
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work for Alliant before effectively terminating their Lockton membership interests.
The district court also granted Kaufman summary judgment on Locktonâs claims
that he breached contract provisions preventing him from soliciting Lockton
members and employees post-departure.3 And it granted Giblin summary judgment
on Locktonâs claims for tortious interference and for breach of the Agreementsâ
customer-nonsolicitation provisions. But the district court declined to do so for
Kaufman, concluding that genuine disputes of material fact precluded summary
judgment on these claims.
After the district court issued its summary judgment rulings, Lockton
voluntarily dismissed the balance of its claims (including its DTSA claims, on which
neither side had sought summary judgment).
Both parties then moved for attorneysâ fees. The district court held that
Lockton was the âprevailing partyâ in the Federal Actions for purposes of the
Agreementsâ fee-shifting provisions. Because the district so concluded, it declined
to award the Members fees under the Agreements. Lockton hired three major law
firms to represent it in the Federal Actions: Gibson Dunn, Quinn Emanuel, and
Bryan Cave. Consequently, Lockton racked up sizable bills for legal services:
$4,923,855.93 in its suit against Giblin and $4,264,674.77 in its suit against
Kaufman. But Lockton paid up. The district court determined that Lockton was
entitled to receive reimbursement for all of the fees it had incurred and requested in
the Federal Actions. It reasoned that Locktonâs attorneys had obtained a large degree
of success in these high-stakes cases and that Lockton was justified in retaining
out-of-market counsel charging rates significantly higher than the median rates for
Missouri litigation attorneys.
3
The district court also granted summary judgment on Locktonâs parallel
claims against Giblin (though Lockton informed the district court before it issued its
summary judgment order in Giblinâs case that it was no longer pursuing these
claims).
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While the district court awarded Lockton the fees it had incurred in
prosecuting the Federal Actions, it declined to award Lockton the fees it had incurred
in the California Actions, reasoning that, under the Agreements, Lockton had to win
those suits first before recovering fees. The district court also rejected the Membersâ
alternative requests for fees under the DTSA. Further appeals and cross-appeals,
which we consolidated with the Membersâ still-pending interlocutory appeals,
followed.
II.
â[E]very federal appellate court has a special obligation to âsatisfy itself not
only of its own jurisdiction, but also that of the lower courts in a cause under
review.ââ Alumax Mill Prods., Inc. v. Cong. Fin. Corp., 912 F.2d 996, 1002 (8th
Cir. 1990) (citation omitted). We begin by addressing that obligation, which is easily
discharged here. Contra post at 51-53.
Under 28 U.S.C. § 1331, federal district courts âhave original jurisdiction of
all civil actions arising under the Constitution, laws, or treaties of the United States.â
âMost directly, a case arises under federal law when federal law creates the cause of
action asserted.â Gunn v. Minton, 568 U.S. 251, 257 (2013). Federal law created
Locktonâs DTSA cause of action. See 18 U.S.C. § 1836(b). The district court thus
had original jurisdiction over Locktonâs DTSA claim.
The district court had supplemental jurisdiction over the balance of Locktonâs
claims under 28 U.S.C. § 1367(a). That statute provides that federal district courts
have, âin any civil action of which the district courts have original
jurisdiction, . . . supplemental jurisdiction over all other claims that are so related to
claims in the action within such original jurisdiction that they form part of the same
case or controversy under Article III of the United States Constitution.â State-law
claims are adequately related for supplemental jurisdiction purposes where âthe
federal-law claims and state-law claims in the case âderive from a common nucleus
of operative factâ and are âsuch that [the defendants] would ordinarily be expected
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to try them all in one judicial proceeding.ââ S. Council of Indus. Workers v. Ford,
83 F.3d 966, 969 (8th Cir. 1996) (citation omitted). Locktonâs state-law
claimsâwhich, like Locktonâs DTSA claim, deal with the circumstances of the
Membersâ departures from Locktonâsatisfy that test. Nobody could seriously
argue otherwise.
In sum, the district court had subject matter jurisdiction over all of Locktonâs
claims. Yet the dissent contends that the district courtâs judgments should be vacated
and these cases dismissed for want of subject matter jurisdiction. See post at 56.
The dissentâs primary concern is that Lockton asserted its DTSA claim to serve as a
jurisdictional hook. See post at 56 (characterizing Locktonâs DTSA claim as âa ruse
to get into federal courtâ and âcircumventâ California state court rulings that had not
yet occurred). But Lockton was permitted to do just that, so long as its DTSA claim
was colorable.4 See Arbaugh v. Y & H Corp., 546 U.S. 500, 513 (2006) (âA plaintiff
properly invokes § 1331 jurisdiction when she pleads a colorable claim âarising
underâ the Constitution or laws of the United States.â). Locktonâs DTSA claim
patently was: it even survived motions to dismiss in both Federal Actions.
Rather than contend that Locktonâs DTSA claim was not âcolorableâ in a
jurisdictional sense, the dissent faults Lockton for not litigating that claim as
vigorously as it litigated its state-law claims. See post at 53-55. But there is no
relative-vigor exception to federal subject matter jurisdiction. Lockton did not need
to, say, move for a preliminary injunction or for summary judgment on its DTSA
claim for the district court to have jurisdiction over Locktonâs suits. And ironically,
the Members fault Lockton for litigating its DTSA claim too vigorously: they
4
The dissent criticizes Locktonâs choice to sue the Members in federal district
court in Missouri as strategic. Post at 57. But Lockton did not forum shop any more
than the Members did. The Members sued Lockton in California for a reason. And
that reason was not that they viewed litigating in California courts as unfavorable to
their interests. The only difference between what the Members did and what
Lockton did is that they breached their contractual commitments when they sued
Lockton in their preferred forum.
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contend that it was unreasonable for Locktonâs counsel to spend literally âthousands
of hoursâ litigating the exact claim the dissent contends Lockton did not litigate.
The dissent blurs supplemental jurisdiction over state law claims, which the
district court exercised here, with original jurisdiction over state law claims.
Because Lockton asserted a colorable federal statutory claim, the dissentâs
substantiality analysis is misplaced. The dissent contends that Locktonâs state-law
claims do not satisfy the substantiality test set forth in Gunn, a case involving
original jurisdiction over state law claims. Post at 55-56. That test has no application
in this case. It governs whether federal courts have original jurisdiction over
state-law claims implicating federal issues. See Gunn, 568 U.S. at 258. But whether
the district court had original jurisdiction over Locktonâs state-law claims is not and
never has been an issue in these cases. Lockton never invoked the district courtâs
original jurisdiction by pointing to its state-law claims. And the district court did
not need original jurisdiction over those claims: it had supplemental jurisdiction over
them, because they are adequately related to the DTSA claim over which it did have
original jurisdiction. See 13 U.S.C. § 1367(a). Nothing more was required.5
5
The dissent also suggests that, if the district court had jurisdiction, we should
nevertheless vacate its judgments and remand with instructions to abstain from
exercising jurisdiction under the Colorado River doctrine. That proposed
approachâdisposing of these cases on a non-jurisdictional ground the parties have
not raised before usâruns afoul of basic principles of party presentation and
fairness. See Hunter v. Page Cnty., 102 F.4th 853, 874 n.12 (8th Cir. 2024) (âThe
federal abstention doctrines are not jurisdictional.â). The dissentâs approach also
fails to grapple with the doctrineâs exacting requirements, which are not met here.
For instance, the dissent does not examine whether the California and Federal
Actions are actually parallel within the meaning of Colorado River. And that is for
good reason: they are not. They involve different claims, applying different law,
and seeking different relief. See Fru-Con Const. Corp. v. Controlled Air, Inc., 574
F.3d 527, 535 (8th Cir. 2009) (âThe prevailing view is that state and federal
proceedings are parallel for purposes of Colorado River abstention when
substantially similar parties are litigating substantially similar issues in both state
and federal court. This circuit requires more precision. . . . . [A] substantial
similarity must exist between the state and federal proceedings, which similarity
occurs when there is a substantial likelihood that the state proceeding will fully
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III.
The Members appeal many of the district courtâs summary judgment rulings.
In particular, the Members contend that the district court erred in declaring that the
Agreementsâ Missouri choice-of-law elections are enforceable, that the Agreementsâ
customer-nonsolicitation covenants are at least partially enforceable as to the
specific subset of customers Lockton identified, and that the Agreementsâ Missouri
forum-selection clauses are enforceable. âWe review the district courtâs summary
judgment order[s] and its interpretation of state law de novo, applying the same
standards applied by the district court.â Bannister v. Bemis Co., 556 F.3d 882, 884
(8th Cir. 2009). â[W]e will affirm [a] grant of summary judgment âif the record
indicates that there is no genuine issue as to any material fact and that the moving
party is entitled to a judgment as a matter of law.ââ Jackson v. Riebold, 815 F.3d
1114, 1119 (8th Cir. 2016) (citation omitted).
A.
The Members first argue that the district court erred in declaring that the
Agreementsâ Missouri choice-of-law clauses were enforceable. A federal court
exercising supplemental jurisdiction over state-law claimsâas the district court was
hereâmust âapply the law of the forum state, including its choice of law rules.â
dispose of the claims presented in the federal court.â). Moreover, the dissent ignores
the factors that generally govern whether âexceptional circumstancesâ are present
for Colorado River purposes. See Federated Rural Elec. Ins. Corp. v. Ark. Elec.
Coops., Inc., 48 F.3d 294, 297 (8th Cir. 1995) (recognizing that determining the
presence of ââexceptional circumstancesâ requires evaluation of several factors,â and
listing those factors). And those factors point toward exercising jurisdiction, not
away from it. Nothing about the dissentâs analysis suggests that this is one of those
rare circumstances where the presumption in favor of exercising jurisdiction is
overcome. See Fru-Con, 574 F.3d at 540 (noting federal courtsâ âvirtually
unflagging obligationâ to exercise jurisdiction where it exists and observing that
jurisdiction may only be surrendered based on âthe clearest of justificationsâ
(citation omitted)).
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Menuskin v. Williams, 145 F.3d 755, 761 (6th Cir. 1998); see also Cuellar-Aguilar
v. Deggeller Attractions, Inc., 812 F.3d 614, 618 (8th Cir. 2015) (noting federal
courtsâ obligation to look to state law for claims over which they exercise
supplemental jurisdiction). â[W]e review the district courtâs application of the
stateâs choice of law rules de novo.â Baxter Intâl, Inc. v. Morris, 976 F.2d 1189,
1195 (8th Cir. 1992).
âMissouri courts generally enforce contractual choice-of-law provisions.â
Surgical Synergies, Inc. v. Genesee Assocs., Inc., 432 F.3d 870, 874 (8th Cir. 2005)
(citation omitted). But not always. See Sturgeon v. Allied Pros. Ins. Co., 344
S.W.3d 205, 210 (Mo. Ct. App. 2011) (declining to honor California choice-of-law
clause).
Here, the parties seem to agree that Missouri courts would follow the approach
laid out in Restatement (Second) of Conflict of Laws § 187 (A.L.I. 1971) in
determining whether to enforce a choice-of-law clause. That position enjoys some
support. See Morris, 976 F.2d at 1195-96; see also Armstrong Bus. Servs., Inc. v.
H & R Block, 96 S.W.3d 867, 871-73 (Mo. Ct. App. 2002) (determining that
contractsâ Missouri choice-of-law election was enforceable under § 187). However,
Missouri courts do not always apply § 187âindeed, in the 34 years following our
Morris decision, Missouri courts have frequently indicated that the enforceability of
a forum-selection clause is exclusively a matter of Missouri public policy that may
be decided without reference to § 187. See, e.g., Kagan v. Master Home Prods. Ltd.,
193 S.W.3d 401, 407 (Mo. Ct. App. 2006) (âWe recognize that generally parties
may choose the state whose law will govern the interpretation of their contractual
rights and duties. So long as the application of this law is not contrary to a
fundamental policy of Missouri, we will honor the partiesâ choice of law provision.â
(citation omitted)); Sturgeon, 344 S.W.3d at 210 (stating that Missouri courts will
honor choice-of-law provisions not contrary to fundamental Missouri policies);
Keeling v. Preferred Poultry Supply, LLC, 621 S.W.3d 672, 678 (Mo. Ct. App.
2021) (same). And we have framed Missouriâs choice-of-law clause enforceability
test the same way: âUnder Missouri law, a choice-of-law clause in a contract
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generally is enforceable unless application of the agreed-to law is âcontrary to a
fundamental policy of Missouri.ââ H & R Block Tax Servs. LLC v. Franklin, 691
F.3d 941, 943 (8th Cir. 2012) (citation omitted).
Ultimately, it does not matter whether our inquiry focuses only on whether
the choice-of-law clauses at issue h