Opinions and documents
UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MISSOURI
EASTERN DIVISION
PULSEFORGE, INC., f/k/a NovaCentrix, )
)
)
Plaintiff, ) Case No. 4:25-CV-01343-ACL
)
vs. )
)
BREWER SCIENCE, INC., )
)
Defendant. )
MEMORANDUM AND ORDER
Plaintiff PulseForge, Inc. (“PulseForge”) brings this action against Defendant Brewer
Science, Inc. (“Brewer”) to enforce an arbitration agreement pursuant to the Federal Arbitration
Act (“FAA”), 9 U.S.C. § 4.
Presently pending before the Court are the following motions: Defendant’s Motion to
Dismiss (Doc. 10), Defendant’s Motion for Preliminary Injunction (Doc. 12), and Plaintiff’s
Motion to Compel Arbitration and Stay All Proceedings (Doc. 21). These motions are fully briefed
and ready for disposition. For the reasons set forth below, the Court will grant Plaintiff’s motion
to compel arbitration and deny Defendant’s motions.
I. Procedural Background
Plaintiff filed its initial Complaint on September 8, 2025. (Doc. 1.) The Complaint
alleges that Plaintiff and Defendant are parties to a nondisclosure agreement (“Agreement”),
which requires that all disputes be resolved by binding arbitration administered by the American
Arbitration Association (“AAA”) and in accordance with the AAA’s Commercial Arbitration
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Rules. The Complaint states that Plaintiff, a Delaware corporation with its principal place of
business in Austin, Texas, is the “successor company” to NovaCentrix (“NCC”). (Doc. 1 at 1.)
Defendant is a Missouri corporation. Plaintiff seeks to pursue arbitration with Defendant
pursuant to the Agreement, but Defendant refuses. Plaintiff therefore seeks an order compelling
arbitration.
On October 9, 2025, Defendant filed a Motion to Dismiss Plaintiff’s Complaint for
failure to state a claim upon which relief can be granted. Defendant argues that Plaintiff
PulseForge seeks to compel Defendant Brewer into binding arbitration in connection with
alleged breaches of the Agreement, but PulseForge is not a party to the Agreement, a third-party
beneficiary, or a proper assignee. Instead, Defendant argues that the Agreement was entered into
by Brewer and NCC. Defendant contends that PulseForge is, therefore, without standing to
enforce the Agreement’s arbitration provisions.
On the same date, Defendant filed a Motion for Preliminary Injunction enjoining Plaintiff
PulseForge from pursing arbitration proceedings against Brewer.
On October 30, 2025, Plaintiff filed an Amended Complaint. (Doc. 18). The Amended
Complaint provides additional allegations regarding how PulseForge came into existence and the
relationship between PulseForge and NCC, as will be set out below. Plaintiff argues that
Defendant’s Motion to Dismiss is mooted by the filing of the Amended Complaint.
Plaintiff also filed the instant Motion to Compel Arbitration and Stay All Proceedings on
October 30, 2025.
The Court held a telephone status conference on December 3, 2025, during which the
parties each presented argument regarding the pending motions. The Court tentatively scheduled
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an evidentiary hearing on Defendant’s Motion for Preliminary Injunction for January 28, 2026, if
the Court determined a hearing was necessary.
Plaintiff—with leave of Court—completed its briefing of the pending motions after the
status conference, on December 4, 2025. (Docs. 34, 35.)
II. Factual Background1
The parties’ dispute relates to the following nondisclosure agreements: the Mutual
Confidentiality Agreement dated May 16, 2017 (“Original NDA” or “2017 NDA”); and the
Extension and First Amendment of Mutual Confidentiality Agreement dated March 6, 2020
(“Extension”) (collectively “Agreement”). Both the Original NDA and the Extension were
signed by Brewer and by NCC.
Plaintiff alleges that the language of the original NDA and the Extension governs here,
because Plaintiff sustained its injuries in or around October 2020 and additional injuries in or
around October 2021.
The Original NDA states as follows:
11. Dispute Resolution – The parties shall first attempt to resolve, through good
faith negotiations, any dispute regarding this Agreement. Failing that, the parties
may select a mediator to assist them in resolving conflicts at a location mutually
agreeable to the parties. Fees directly related to the selected mediator shall be
divided equally between the parties. If the dispute regarding this Agreement still
cannot be resolved, any dispute regarding this Agreement, or any damages
associated with its breach, shall be decided by binding arbitration before a single
arbitrator and administered by the American Arbitration Association (AAA) in
accordance with its Commercial Arbitration Rules then in effect. Any decision of
the arbitrator shall be final and may be enforced by any judicial court having
jurisdiction over the parties. The place of arbitration shall be a neutral site agreed
1 The facts recited in this section are taken solely from the Amended Complaint. (Doc. 18.)
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upon by the parties. If the parties cannot agree upon a site, the place of arbitration
shall be Dallas, Texas, U.S.A.
(Doc. 18 at 3.) The Original NDA further states as follows:
15. Choice of Law—This Agreement shall be construed and governed by the
laws of the State of Missouri, U.S.A., excluding its body of law controlling
conflicts of laws.
Id.
On January 4, 2022, NCC went through a “divisive merger,” a Texas statutory process by
which a company may divide some of its assets into a separate company that has common
ownership with the original company. Plaintiff alleges that a divisive merger is not an
assignment of intellectual property or other property pursuant to Texas law, citing Tex. Bus.
Orgs. Code Ann. § 10.008.
Plaintiff states that, through the January 4, 2022 divisive merger, PulseForge “came into
existence as a former part of NCC.” Id. at 2. PulseForge “became the owner of NCC’s relevant
technology as well as NCC’s nondisclosure agreements, which included the Original NDA…”
Id.
Plaintiff alleges that Defendant has committed acts that constitute breach of the Original
NDA and Extension and trade secret misappropriation against Plaintiff. Specifically, Plaintiff
alleges that Defendant “wrongfully misused and disclosed Confidential Information (as defined
in the Original NDA) it received from PulseForge in separate wrongful acts in 2020 and 2021.”
Id. at 3-4.
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Plaintiff’s counsel sent a letter via email and Federal Express to Defendant on September
4, 2025, requesting that Defendant consent to arbitration by September 8, 2025. Defendant did
not reply to the letter by September 8, 2025, and has refused to consent to arbitration.
Plaintiff asserts a sole claim for relief—under the Federal Arbitration Act—alleging that
Plaintiff and Defendant are currently involved in a dispute concerning Defendant’s wrongful
misuse and disclosure of information it received from Plaintiff pursuant to the Original NDA.
Plaintiff states that, in other words: (1) a valid agreement to arbitrate exists; and (2) the instant
dispute falls within the scope of that arbitration provision. Plaintiff seeks an order compelling
Defendant to arbitrate.
III. Discussion
As an initial matter, the undersigned agrees with Plaintiff that Defendant’s Motion to
Dismiss is mooted by the filing of the Amended Complaint. An amended Complaint generally
renders moot a pending motion to dismiss the original Complaint. See In re Atlas Van Lines,
Inc., 209 F.3d 1064, 1067 (8th Cir. 2000) (“It is well established that an amended complaint
super[s]edes an original complaint and renders the original complaint without legal effect.”)
(citation omitted). Plaintiff filed the Amended Complaint within 15 days of service of
Defendant’s Motion to Dismiss, pursuant to Federal Rule of Civil Procedure 15(a)(1)(B). In
response, Defendant filed an Answer, rather than a renewed motion to dismiss. (Doc. 28.) Thus,
Defendant’s motion to dismiss the original Complaint is found moot.
Plaintiff also contends that Defendant’s Motion for Preliminary Injunction is moot, in
light of the filing of the Amended Complaint. Defendant argues that its Motion is not moot,
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because Brewer’s motion for preliminary injunction seeks relief from being compelled into
arbitration and the harm to Brewer and the relief it seeks are no different under the Amended
Complaint than they were under the initial Complaint. In the alternative, Defendant requests that
the Court either consider Brewer’s motion as being addressed to the Amended Complaint or that
the Court allow Brewer to file a renewed motion for preliminary injunction.
Because an amended complaint supersedes an original complaint and renders the original
complaint without legal effect as discussed above, “[c]ourts have concluded that where an
amended complaint has been filed, an existing motion for preliminary injunction should be
dismissed without prejudice.” Miles v. Johnston, 0:24-cv-01012, 2024 WL 5318973, at *6 (D.
Minn. Dec. 18, 2024). Here, the relief requested in Defendant’s Motion is equally applicable to
the Amended Complaint. In the interest of judicial economy, rather than require Defendant to
file a renewed motion, the Court will construe Defendant’s Motion for Preliminary Injunction as
being directed to the Amended Complaint.
A. Defendant’s Motion for Preliminary Injunction
Defendant requests that the Court enter a preliminary injunction enjoining PulseForge
from pursuing arbitration proceedings against Brewer. Defendant argues that PulseForge is not a
party to the Agreement, nor is it a third-party beneficiary or assignee of the Agreement. Because
Brewer never agreed to arbitrate its disputes with PulseForge, Defendant argues that Brewer is
likely to succeed on the merits of its claim that it cannot be compelled to arbitrate this dispute.
Defendant further argues that Brewer would suffer irreparable harm if it were forced to expend
time and resources arbitrating a dispute it has not agreed to arbitrate. In support of its Motion,
Defendant has attached the Affidavit of Kimberly Yess, currently employed as a Corporate
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Fellow with Brewer, and previously employed as an Executive Director for Brewer. (Doc. 13-1.)
Ms. Brewer provides testimony regarding the Agreements at issue, the divisional merger, and the
parties’ underlying dispute.
In Response, Plaintiff argues that the Motion should be denied because PulseForge is the
successor in interest to NCC, the signatory on the 2017 NDA. Plaintiff contends that Defendant
has failed to demonstrate a probability of success on the merits and to prove irreparable harm.
Defendant, in its Reply, argues that the evidence PulseForge proffers to show that it
succeeded to NCC’s rights under the Agreement as part of the divisive merger is “ambiguous at
best.” (Doc. 29 at 2.) Defendant requests that, at a minimum, the Court should “enjoin
PulseForge from pursuing arbitration to preserve the status quo while Brewer takes discovery on
the factual question of which NCC assets were transferred to PulseForge and which remained
with NCC under the merger.” Id. Defendant next argues that, under Missouri law—which
governs the Agreement –the change in corporate structure from NCC to PulseForge constitutes
an assignment in violation of the Agreement’s anti-assignment clause. Defendant submits new
facts as well as the Declaration of its General Counsel, Rebecca Rich. (Doc. 29-1.)
The Court held a status conference at the request of the parties on December 3, 2025.
During the conference, counsel for Defendant requested that the Court hold an evidentiary
hearing on its Motion for Preliminary Injunction. Counsel represented that pre-hearing
discovery would be unnecessary, and that the only witnesses would be the individuals who
submitted sworn declarations in the briefing. Counsel for Plaintiff argued that an evidentiary
hearing was not necessary, as all of the evidence necessary to resolve Defendant’s Motion is
already before the Court.
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In its Sur-Reply, Plaintiff argues that the Court should deny the Motion for Preliminary
Injunction, stay the case, and compel the parties to arbitrate. (Doc. 34.) Plaintiff notes that the
FAA codifies a strong public policy favoring the enforcement of arbitration agreements.
Plaintiff argues that the Plan of Merger and the testimony of Jonathan Gibson—a senior
executive at both NCC and PulseForge—confirms that the Agreement was allocated to
PulseForge.
The Court finds that the parties have had the opportunity to adequately develop the
factual record on the motion for preliminary injunction, and the Court will determine the motion
on the briefs and evidence in the record without hearing. See Fed. R. Civ. P. 78(b); United
Healthcare Ins. Co. v. AdvancePCS, 316 F.3d 737, 744 (8th Cir. 2002) (“An evidentiary hearing
is required prior to issuing a preliminary injunction only when a material factual controversy
exists.” (citing Movie Sys., Inc. v. MAD Minneapolis Audio Distribs., 717 F.2d 427, 432 (8th Cir.
1983)).
Legal Standards
“A preliminary injunction is an extraordinary remedy never awarded as of right.” Cigna
Corp. v. Bricker, 103 F.4th 1336, 1342 (8th Cir. 2024) (quoting Winter v. Nat. Res. Def. Council,
Inc., 555 U.S. 7, 24 (2008)). “Its “primary function...is to preserve the status quo until, upon
final hearing, a court may grant full, effective relief.’” Id. (quoting Ferry-Morse Seed Co. v.
Food Corn, Inc., 729 F.2d 589, 593 (8th Cir. 1984)).
In determining whether to issue preliminary injunctive relief, this Court considers the
following factors: (1) the probability that the movant will succeed on the merits; (2) the threat of
irreparable harm to the movant; (3) the balance between this harm and the injury that granting
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the injunction will inflict on the nonmovant; and (4) the public interest. Home Instead, Inc. v.
Florance, 721 F.3d 494, 497 (8th Cir. 2013) (citing Dataphase Sys., Inc. v. C L Sys., Inc., 640
F.2d 109, 113 (8th Cir. 1981) (en banc)). The inquiry is “whether the balance of equities so
favors the movant that justice requires the court to intervene to preserve the status quo until the
merits are determined.” Dataphase Systems, Inc., 640 F.2d at 113.
The likelihood of success is the most important factor. Roudachevski v. All-Am. Care
Centers, Inc., 648 F.3d 701, 706 (8th Cir. 2011). This factor directs courts to ask whether the
party requesting a preliminary injunction has a “fair chance of prevailing.” Planned Parenthood
Minnesota, N. Dakota, S. Dakota v. Rounds, 530 F.3d 724, 732 (8th Cir. 2008) (en banc).
However, even when a plaintiff has a strong claim on the merits, “[f]ailure to demonstrate
irreparable harm is a sufficient ground to deny a preliminary injunction.” Phyllis Schlafly
Revocable Tr. v. Cori, 924 F.3d 1004, 1009 (8th Cir. 2019) (quoted case omitted). “Irreparable
harm occurs when a party has no adequate remedy at law, typically because its injuries cannot be
fully compensated through an award of damages.” Gen. Motors Corp. v. Harry Brown’s, LLC,
563 F.3d 312, 319 (8th Cir. 2009). The moving party bears the burden to establish the need for
injunctive relief. Chlorine Inst., Inc. v. Soo Line R.R., 792 F.3d 903, 914 (8th Cir. 2015).
Defendant’s Motion
Defendant does not argue the validity or applicability of the Agreement to Plaintiff’s
claims. Rather, Defendant argues that PulseForge has no standing to enforce the Agreement
against Brewer because PulseForge is not a signatory to, third-party beneficiary of, or permitted
assignee of the Agreement. Defendant contends that Brewer is likely to succeed on the merits of
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its claim that it cannot be compelled to arbitrate its dispute with PulseForge because it never
agreed to arbitrate such disputes.
Plaintiff responds that Defendant has not demonstrated a likelihood of success on the
merits, because its argument is predicated on the false assumption that PulseForge is not the
successor in interest to NCC. Plaintiff contends that, because PulseForge is the successor in
interest to NCC and no assignment has taken place, PulseForge has standing to enforce its rights
under the Agreement.
Evidence Submitted by Plaintiff
Plaintiff has submitted the Declaration of Jonathan Gibson, Chairman of the Board of
Directors, President, and Chief Operating Officer of PulseForge; and Vice President of NCC.
(Doc. 23.) Mr. Gibson testified that, in addition to the Agreement and Extension referenced
above, NCC and Brewer entered into a subsequent Mutual Non-Disclosure Agreement on
February 28, 2023 (“2023 NDA”). (Doc. 23 at 2; Doc. 23-3.) The 2023 NDA only applies to
information exchanged thereunder. Id. Mr. Gibson testified that the 2017 NDA applies to the
parties’ dispute concerning Brewer’s alleged wrongful disclosure of PulseForge’s Confidential
Information because the Confidential Information at issue was exchanged under that Agreement,
and prior to February 2023. (Doc. 23 at 2; 23-1 at 1.)
Mr. Gibson testified that PulseForge is the “successor in interest to and a continuation of
NCC.” (Doc. 23 at 2.) He stated that NCC “became PulseForge” through the Texas statutory
process known as a divisive merger on January 4, 2022. Id. at 3. Defendant has attached a copy
of the Agreement and Plan of Merger memorializing the divisive merger. (Doc. 23-4.) Mr.
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Gibson stated that he had reviewed the Plan of Merger and was familiar with its contents. (Doc.
23 at 3.)
Mr. Gibson testified that, pursuant to the Plan of Merger, NCC split into two entities: (1)
NCC Nano, LLC (“New NCC”); and (2) PulseForge. Id. The Plan of Merger divides the assets
of NCC between New NCC and PulseForge. Id. In particular, the Plan of Merger states as
follows:
All of the rights, assets, and properties of NCC described in Schedule I attached
hereto (collectively, the “PFI Assets”) shall be allocated to, possessed by, and
vested in PFI without reversion or impairment, without further act or
deed…without transfer or assignment having occurred.
(Doc. 23-4 at 3.) In other words, pursuant to the Plan of Merger, the NCC assets listed on
Schedule I would be allocated to PulseForge. (Doc. 23 at 3.) Schedule I, in turn, refers to a
corresponding spreadsheet. (Doc. 23 at 3; Doc. 23-5.) Plaintiff has attached Schedule I and the
corresponding spreadsheet. (Doc. 23-5.) Mr. Gibson testified that he has reviewed Schedule I
and is familiar with its contents. (Doc. 23 at 3.)
Mr. Gibson testified that Schedule I allocates to PulseForge (1) the technology
constituting the Confidential Information at issue in this case; and (2) the non-disclosure
agreements relating to the same, including the 2017 NDA and the Extension. Id. In support, Mr.
Gibson cites the Plan of Merger provision allocating “all PulseForge related research and
development information” as well as all “NDAs, MOUs, [and] Purchasing Agreement” to
PulseForge. (Doc. 23-4 at 3; Doc. 23-5 at 3.) Finally, Mr. Gibson testified that the Confidential
Information at issue in this case, which was exchanged under the 2017 NDA, relates to
PulseForge’s business. (Doc. 23 at 3.)
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Evidence Submitted by Defendant
Defendant submits the Declaration of its General Counsel, Rebecca Rich. (Doc. 29-1.)
Ms. Rich states that the Agreement entered into by Brewer and NCC provides as follows
regarding the ability of the parties to assign the Agreement:
10. Assignment—This Agreement may not be assigned without the prior written
consent of both parties. All unauthorized assignments shall be void.
(Doc. 29-1 at 3, 10.) Ms. Rich notes that the Agreement also contains the following choice of
law provision:
15. Choice of Law—This Agreement shall be construed and governed by the
laws of the State of Missouri, U.S.A., excluding its body of law controlling
conflicts of laws.
(Doc. 29-1 at 3, 11.)
Ms. Rich provides extensive testimony regarding the nature of Brewer and NCC’s
business relationship, including the development of technology, patent applications, and the
usage of confidential information that is the subject of the underlying dispute. (Doc. 29-1 at 4-
6.) Ms. Rich states that Brewer learned that NCC “had spun out Plaintiff PulseForge, Inc. in
January 2022 as a new company.” Id. at 6. Ms. Rich then relays discussions between Brewer,
NCC, and PulseForge occurring between January 2022 and October 2022. Id.
Analysis
The evidence before the Court is sufficient to determine the sole issue before the Court:
Whether PulseForge is the successor in interest to NCC. At the status conference, Defendant’s
counsel conceded that pre-hearing discovery was not necessary and represented that the only
witnesses who would testify at a hearing were Mr. Gibson and Ms. Rich. Defendant’s counsel
argued that the merger documents are ambiguous because the term “NDA” is not defined.
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Plaintiff responds that, even if ambiguities regarding the merger documents exist, those
ambiguities can be resolved by determining the intentions of the parties: PulseForge and NCC.
Because PulseForge has submitted the declaration of Mr. Gibson, an executive with PulseForge
and NCC, Plaintiff argues that the record before the Court is sufficient to resolve this issue. The
undersigned agrees.
1. Is PulseForge the Successor in Interest to NCC?
The evidence in the record establishes that the Agreement was allocated to
PulseForge as part of the divisive merger and that PulseForge is the successor in interest to NCC.
The merger documents reveal that PulseForge was created through the divisive merger of NCC.
(Docs. 23-4, 23-5.) Defendant acknowledges that NCC “had spun out [Plaintiff] PulseForge,
[Inc.,] as a new company.” (Doc. 29 at 6.) The Plan of Merger states that “[a]ll of the rights,
assets, and properties of NCC described in Schedule I attached hereto…shall be allocated to,
possessed by, and vested in [PulseForge][.]” (Doc. 23-4 at 3, emphasis added.) Schedule I lists
as PulseForge assets, the “contracts and agreements” referenced on the spreadsheet attached
thereto. (Doc. 23-5 at 2.) The spreadsheet, in turn, states that PulseForge “assets will include all
PulseForge…NDAs,” id. at 3, which were previously NCC’s assets. The Agreement restricts the
disclosure of information exchanged between the parties. As such, it is a non-disclosure
agreement or “NDA.”
To the extent there is any ambiguity regarding whether the Agreement is an “NDA”
under the merger documents, the testimony of Mr. Gibson resolves this issue. See Am. Fed’n. of
State, Cnty. & Mun. Emps., AFL-CIO, Council 61 v. State, 653 S.W.3d 111, 127 (Mo. banc
2022) (quotation omitted) (“The cardinal rule in the interpretation of a contract is to ascertain the
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intention of the parties and give effect to that intention.”). Mr. Gibson—an executive with both
PulseForge and NCC—testified that the Plan of Merger allocated the technology constituting the
Confidential Information at issue in this case and the Agreement to PulseForge. (Doc. 23 at 3.)
The testimony of Ms. Rich offered by Defendant is not relevant to the issue of whether
PulseForge is the successor in interest to NCC, as Ms. Rich is not associated with either entity.
In fact, the majority of Ms. Rich’s testimony relates to the merits of the underlying dispute which
has no relevance to the pending motions. Thus, the undisputed facts establish that the
Agreement was allocated to PulseForge in the divisive merger.
2. Was the Divisive Merger an Assignment?
Defendant next argues that Missouri law rather than Texas law governs the divisive
Merger; and, under Missouri law, the divisive merger constitutes an impermissible assignment in
violation of the Agreement’s anti-assignment clause.
Plaintiff responds that Texas law governs the divisive merger. Plaintiff contends that,
even if Missouri law applied, the divisive merger does not constitute a prohibited assignment
under Missouri law.
As cited above, the Agreement’s choice of law provision provides that the Agreement be
“construed and governed by the laws of the State of Missouri…” (Doc. 29-1 at 11.) Plaintiff
argues that it is black letter law that the legal effect of a merger is governed by the law of the
state under which the merger was effectuated. Because the divisive merger at issue here was
effectuated under Texas law, Plaintiff argues that Texas law governs the effect of the merger.
Plaintiff further notes that the Plan of Merger contains a Texas choice-of-law provision stating
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that “all of the actions and transactions contemplated [t]hereby” will “be governed by and
construed in accordance with the laws of the State of Texas…even if…the substantive or
procedural Law of some other jurisdiction would ordinarily or necessarily apply.” (Doc. 23-4 at
11.)
The undersigned agrees that the legal effect of the divisive merger of NCC and
PulseForge is governed by Texas law. The Court further finds that this is a distinction without a
difference, because the result is the same under Texas and Missouri law.
“When a merger takes effect ... all rights, title, and interests to all real estate and other
property owned by each organization that is a party to the merger is allocated to and vested,
subject to any existing liens or other encumbrances on the property, in one or more of the
surviving or new organizations as provided in the plan of merger without ... any transfer or
assignment having occurred....” Tex. Bus. Orgs. Code Ann. § 10.008(a)(2)(C) (emphasis
added). Further, “[t]he Texas Legislature intended by its amendments to the Business
Corporations Act that a prohibited transfer would not be implied by merger but would only occur
in the event the parties agreed that merger specifically violated an anti-assignment provision.”
TXO Prod. Co. v. M.D. Mark, Inc., 999 S.W.2d 137, 143 (Tex. App.—Houston [14th Dist.]
1999).
Defendant does not dispute that under Texas law, assets that have been allocated in a
merger are not considered to have been transferred or assigned. Defendant also acknowledges
that, under Missouri law, a change in corporate structure such as a merger will not typically
invoke an anti-assignment clause. Defendant argues that Missouri law “recognizes an exception
where the change in corporate structure materially alters the contractual rights and duties of the
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non-consenting party.” (Doc. 29 at 12.) The sole basis of Defendant’s argument that this
exception exists is language in Alexander & Alexander, Inc. v. Koelz, stating that “if there is no
material change in the contract obligations and duties of the employee, there is no reason for the
transfer of the rights from one entity or form to another to work an assignment putatively
prohibited by the rule against assignment of personal service contracts.” 722 S.W.2d 311, 313
(Mo. App. E.D. 1986) (citing Sun World Corp. v. Pennysaver, Inc., 637 P.2d 1088, 1090-92
(Ariz. App. 1981)) (emphasis added).
The Alexander case does not, however, support Defendant’s position. In Alexander, the
question presented was “whether the surviving company in a statutory merger can enforce
covenants not to compete contained in contracts between the merged company and employees of
that company.” 722 S.W.2d at 312. The appellate court held that such covenants not to compete
were enforceable because a merger does not constitute a prohibited assignment:
Employees assert the employment contract at issue in their case is one for
personal services, which, as a general rule, cannot be assigned without the consent
of the employee. However, a change in the form in which the employer does
business such as the merger in this case, while involving a formal transfer from
one entity to another, should not be seen as creating an assignment in violation of
the rule against the assignment of personal service contracts. The merger here
apparently had no effect on the business of employer, which was merely
converted from a wholly-owned subsidiary of surviving corporation to an integral
corporate part of surviving corporation. Just as the initial acquisition of one
company by another by the purchase of stock would not work a change in the
business, neither would the merger, a mere change in the form of ownership from
indirect to direct, work such a change in the business. As no assignment could
occur in the former, no prohibited “assignment” would occur in the latter.
Id. at 312–13 (citation omitted). The Court noted that if a prohibited assignment were found
under these circumstances, “the statutory scheme which allowed such mergers would be
seriously disrupted.” Id. at 313.
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In sum, although the language in Alexander cited by Defendant suggests that a “material
change” in contract obligations and duties might possibly amount to an assignment, the Court
found that did not occur in the facts before it involving “a mere change in the form of
ownership.” Id. at 313. Here, similar to Alexander, NCC merely changed its corporate form by
“spinning out” an already existing entity to form PulseForge. Defendant offers no authority—
under Missouri or Texas law—that such a change in corporate structure constitutes an
impermissible assignment.
Thus, the Court finds that NCC’s allocation of its rights under the Agreement to
PulseForge as part of the divisive merger does not constitute an impermissible assignment.
3. Conclusion
The Court has found that the Agreement was allocated to PulseForge as part of the
divisive merger and that the allocation does not constitute an impermissible assignment. Thus,
Brewer has no likelihood of success on the merits of its claim that it cannot be compelled to
arbitrate its dispute with PulseForge. Thus, it is unnecessary to discuss the other factors and the
Motion for Preliminary Injunction will be denied. See, e.g., Gelco Corp. v. Coniston Partners,
811 F.2d 414, 420 (8th Cir.1987) (“The failure to show irreparable harm is, by itself, a sufficient
ground upon which to deny a preliminary injunction, for the basis of injunctive relief in the
federal courts has always been irreparable harm and inadequacy of legal remedies.”) (internal
quotation and alteration omitted).
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B. Plaintiff’s Motion to Compel Arbitration and Stay All Proceedings
PulseForge requests that the Court compel arbitration and stay all proceedings in this
action pursuant to Sections 2 through 4 of the FAA. PulseForge contends that the Agreement
contains an unambiguous arbitration provision requiring that any disputes between the parties be
decided by binding arbitration.
Brewer responds that the motion should be denied because PulseForge has not
established that it is a party to the Agreement. Brewer further argues that PulseForge’s motion to
compel is improper and a jury trial is required because PulseForge has invoked Section 4 of the
FAA.
Legal Standard
The FAA requires courts to enforce written agreements to arbitrate disputes and reflects a
“liberal federal policy favoring arbitration agreements.” Moses H. Cone Mem’l Hosp., 460 U.S.
at 24. “[C]ontract provisions directing arbitration shall be enforceable in all but limited
circumstances.” Kelly v. Golden, 352 F.3d 344, 349 (8th Cir. 2003).
Under Section 2 of the Federal Arbitration Act (FAA), “written arbitration agreements
[are] valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for
the revocation of a contract.” Anderson v. Carlisle, 129 S.Ct. 1896, 1901 (2009). Section 2
“creates substantive federal law regarding the enforceability of arbitration agreements, requiring
courts to place such agreements upon the same footing as other contracts.” Id. (quotations
omitted).
When reviewing a motion to compel arbitration, a district court asks only (1) whether a
valid agreement to arbitrate exists between the parties and (2) whether the specific dispute falls
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within the scope of that agreement. Robinson v. EOR-ARK, LLC, 841 F.3d 781, 783-84 (8th Cir.
2016); Donaldson Co., Inc. v. Borroughs Diesel, Inc., 581 F.3d 726, 729 (8th Cir. 2009) (“A
court must grant a motion to compel arbitration if a valid arbitration clause exists which
encompasses the dispute between the parties.”) (citations omitted). State contract law governs
whether the parties have entered into a valid arbitration agreement. Robinson, 841 F.3d at 784.
In Missouri, a valid contract requires an offer, acceptance, and consideration. Baker v. Bristol
Care, Inc., 450 S.W.3d 770, 774 (Mo. 2014).
The party seeking to compel arbitration bears the burden of proving the existence of such
an agreement. Ballou v. Asset Mktg. Servs., LLC, 46 F.4th 844, 851 (8th Cir. 2022); Duncan v.
TitleMax of Missouri, Inc., 607 S.W.3d 243, 249 (Mo. Ct. App. 2020). “The party resisting
arbitration bears the burden of showing either that the arbitration provision is invalid or that it
does not encompass the claims at issue.” Triplet v. Menard, Inc., 42 F.4th 868, 870 (8th Cir.
2022). Under the Federal Arbitration Act (“FAA”), any doubts concerning the scope of
arbitrable issues should be resolved in favor of arbitration. Lyster v. Ryan’s Fam. Steak Houses,
Inc., 239 F.3d 943, 945 (8th Cir. 2001).
When a motion to compel arbitration is accompanied by matters outside the pleadings, a
court will evaluate the motion under a summary-judgment-like standard, viewing facts in the
light most favorable to the non-moving party and drawing all reasonable inferences in their
favor. Nebraska Mach. Co. v. Cargotec Sols., LLC, 762 F.3d 737, 742-43 (8th Cir. 2014).
Under the FAA, if the record reveals a material issue of fact as to whether the parties agreed to
arbitrate, the court shall proceed summarily to trial on that issue. Id.; 9 U.S.C. § 4. However, if
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a trial by jury is not demanded by the party opposing arbitration, “the court shall hear and
determine such issue.” 9 U.S.C. § 4.
Plaintiff’s Motion
Plaintiff first argues that it properly invoked Section 4 of the FAA and filed a motion to
compel. Plaintiff contends that Defendant would only be entitled to a jury trial if there were a
genuine issue of material fact as to the formation of an agreement to arbitrate, and there is no
genuine issue of fact here.
1. Did PulseForge Properly Invoke Section 4 of the FAA?
Defendant argues that, because PulseForge brought its complaint seeking to compel
arbitration pursuant to Section 4 of the FAA, PulseForge’s motion to compel arbitration is
redundant and improper.
The Eighth Circuit in Zarecor v. Morgan Keegan & Co., Inc., 801 F.3d 882, 889 (8th Cir.
2015), endorsed the general procedure followed by PulseForge. Specifically, the Court stated
that a plaintiff “who pursues arbitration is not required to await the outcome to bring an action in
court, and there is an accepted procedure for pursuing arbitration and a lawsuit simultaneously.”
Id. The Court further noted that a plaintiff “may file suit within the statute of limitations and
then seek a stay of the action pending arbitration.” Id.
Defendant argues that the motion to compel is redundant, as Plaintiff’s Complaint seeks
to compel arbitration. An application to compel arbitration under the FAA is treated as a motion
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rather than a pleading. See 9 U.S.C. § 6 (“Any application to the court hereunder shall be made
and heard in the manner provided by law for the making and hearing of motions…”). Here,
Plaintiff docketed its request to compel arbitration as a Complaint rather than a motion. (Doc.
1.) Plaintiff’s subsequent filing of the motion to compel arbitration, while technically
duplicative, caused the matter to properly progress as a motion. See, e.g. SBM Site Services, LLC
v. Alvarez, No. 4:17CV3028, 2018 WL 734170, at *1 (D. Neb. Feb. 6, 2018) (“Because
Petitioner erroneously docketed its petition as a complaint, the court directed Petitioner to file a
separate motion to compel arbitration in order to progress the matter.”). Thus, the filing of the
motion to compel is not improper.
Next, contrary to Defendant’s assertion, Defendant is not automatically entitled to a jury
trial or any other “special processes” under Section 4 of the FAA. (Doc. 30 at 9.) A jury trial or
bench trial “is only utilized when there exists a genuine issue of material fact as to the formation
of an agreement to arbitrate—trial is not automatically granted to the requesting party.” Ranson
v. Securitas Sec. Services USA, Inc., No. 1:18-CV-105-SNLJ, 2018 WL 4593707, at *3 (E.D.
Mo. Sept. 25, 2018), citing Nebraska Machinery Co. v. Cargotex Solutions, LLC, 762 F.3d 737,
743 (8th Cir. 2014) (“if the motions record reveals a material issue of fact, the FAA maintains
that the court move summarily to trial”); Schnabel v. Trilegiant Corp., 697 F.3d 110, 118 (2nd
Cir. 2012) (holding a jury trial under Section 4 of the FAA is only warranted when there “exists
one or more genuine issues of material fact”); Burch v. P.J. Cheese, Inc., 861 F.3d 1338, 1346
(11th Cir. 2017) (accord).
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2. Is there a Genuine Issue of Material Fact?
The Court finds that Defendant is not entitled to a trial under Section 4, because there is
no genuine issue of material fact as to “the making of the arbitration agreement.” 9 U.S.C. § 4.
Defendant does not dispute that Brewer signed the Agreement. Instead, Defendant argues that
factual issues exist as to whether the Agreement was assigned to PulseForge by NCC. Defendant
contends that PulseForge was not a signatory to the Agreement, Brewer did not consent to the
assignment of the Agreement to PulseForge, and that the assignment violated the Agreement’s
anti-assignment clause.
The Court considered Defendant’s arguments in connection with its Motion for
Preliminary Injunction. The Court found that the undisputed facts reveal that the Agreement was
allocated to PulseForge in the Plan of Merger, and that the allocation does not constitute an
impermissible assignment under Texas or Missouri law. Thus, there is no genuine issue of
material fact as to the making of the arbitration Agreement.
3. Conclusion
Brewer does not dispute that it entered into the 2017 Agreement with NCC, and that the
Agreement contains an arbitration provision covering “any dispute regarding th[e] Agreement.”
(Doc. 29-1 at 10.) Brewer further acknowledges that the instant dispute concerns Brewer’s
alleged breach of the Agreement by disclosing confidential information that was protected
pursuant to that Agreement. Because the Court has found that the evidence before the Court
establishes that the Agreement was allocated to PulseForge in the divisive merger, Defendant
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has not raised a genuine dispute of material fact that would merit a trial on the issue of contract
formation under Section 4 of the FAA.
“The [FAA] leaves no place for the exercise of discretion by a district court, but instead
mandates that district courts shall direct the parties to proceed to arbitration on issues as to which
an arbitration agreement has been signed.” Dean Witter Reynolds, Inc. v. Byrd, 470 U.S. 213,
218 (1985). Thus, the Court will grant Plaintiff’s motion to compel arbitration.
Finally, Defendant argues that Plaintiff’s request for a stay must be denied in the event
the motion to compel is granted, because “PulseForge seeks to stay the very action that if filed.”
(Doc. 30 at 13.) The FAA, however, requires that the district court “shall…stay the trial of the
action until such arbitration has been had in accordance with the terms of the agreement.” 9
U.S.C. § 3. Thus, this action will be stayed pending the outcome of arbitration.
Accordingly,
IT IS HEREBY ORDERED that Defendant’s Motion to Dismiss (Doc. 10) is found
moot.
IT IS FURTHER ORDERED that Defendant’s Motion for Preliminary Injunction (Doc.
12) is denied.
IT IS FURTHER ORDERED that Plaintiff’s Motion to Compel Arbitration and Stay
All Proceedings (Doc. 21) is granted.
Dated this 23rd day of December, 2025.
s/Abbie Crites-Leoni
ABBIE CRITES-LEONI
UNITED STATES MAGISTRATE JUDGE
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