Aceco Valves, LLC v. Neal

CourtDistrict Court, W.D. Oklahoma
DecidedJanuary 5, 2024
Docket5:21-cv-00368
StatusUnknown

This text of Aceco Valves, LLC v. Neal (Aceco Valves, LLC v. Neal) is published on Counsel Stack Legal Research, covering District Court, W.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aceco Valves, LLC v. Neal, (W.D. Okla. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF OKLAHOMA

ACECO VALVES, LLC, ) ) Plaintiff, ) ) v. ) Case No. CIV-21-368-D ) BRAD NEAL, et al., ) ) Defendants. )

ORDER Before the Court is Plaintiff’s Motion to Compel Discovery from O.W. Valve, LLC and Orvel Wolf II [Doc. No. 126]. Defendants O.W. Valve, LLC and Orvel Wolf II filed a joint response [Doc. No. 131], and Plaintiff replied [Doc. No. 136]. The matter is fully briefed and at issue. BACKGROUND This case involves the sale of a small-town valve manufacturing company. Along with her husband, Patricia Wolf owned and operated Aceco Valves, Inc., for many years. Multiple Wolf family members worked at Aceco, including Ms. Wolf’s grandson, Defendant Orvel “DoLee” Wolf II. On April 6, 2018, Ms. Wolf entered into an Asset Purchase Agreement (the “APA”) to sell Aceco Valves, Inc., and all of its assets to MNergy, LLC. After the purchase, MNergy, LLC, changed its name to Aceco Valves, LLC. This dispute concerns certain non-solicitation provisions set forth in the APA. These provisions prohibited Ms. Wolf and her “Affiliates” from inducing any Aceco employee to terminate their employment for a three-year period beginning on April 6, 2018. According to the APA’s definitions, Ms. Wolf’s grandson, DoLee, is considered an “Affiliate” of Ms. Wolf. The APA also provided that if Ms. Wolf or her Affiliates violated any non-solicitation

provision, Plaintiff would be entitled to an accounting and repayment of profits realized by Ms. Wolf or her Affiliates. In 2020, DoLee began speaking with Defendant Brad Neal about forming a new valve company. Mr. Neal was a long-tenured employee of Aceco and worked as its General Manager under the Wolfs. He continued to work for Aceco after the April 6, 2018 sale. During the Restricted Period, DoLee began soliciting Mr. Neal to work for DoLee’s new

company, O.W. Valve, LLC. On November 23, 2020—less than two years after Plaintiff purchased Aceco—Mr. Neal resigned from his managerial position with Aceco. Plaintiff asserts several causes of action against Mr. Neal, Ms. Wolf, DoLee Wolf, and O.W. Valve, LLC, arising out of the formation and launch of O.W. Valve. Relevant here, Plaintiff claims that a number of O.W. Valve’s and DoLee’s discovery

responses are deficient. Specifically, Plaintiff argues that the “deficiencies and supplementation at issues here are relevant to the Wolfs’ conspiracy with Neal to steal and misappropriate Aceco’s trade secrets and confidential information for the benefit of O.W. Valve. They’re also relevant to determining whether Neal, Dolee, and O.W. Valve have complied with the preliminary injunctions.” Pl.’s Mot. to Compel at 5.

STANDARD OF DECISION “Parties may obtain discovery regarding any nonprivileged matter that is relevant to any party's claim or defense and proportional to the needs of the case . . . .” FED. R. CIV. P. 26(b)(1). The considerations bearing on proportionality include “the importance of the issues at stake in the action, the amount in controversy, the parties’ relative access to relevant information, the parties’ resources, the importance of the discovery in resolving

the issues, and whether the burden or expense of the proposed discovery outweighs its likely benefit.” Id. “Information within this scope of discovery need not be admissible in evidence to be discoverable.” Id. Thus, “information is relevant if it ‘bears on’ or might reasonably lead to information that ‘bears on’ any material fact or issue in the action.” 1 STEVEN S. GENSLER & LUMEN N. MULLIGAN, FEDERAL RULES OF CIVIL PROCEDURE, RULES AND COMMENTARY RULE 26; see also Cole’s Wexford Hotel, Inc. v. Highmark Inc.,

209 F. Supp. 3d 810, 823 (W.D. Pa. 2016) (“As set forth in the advisory committee notes to the 2015 amendments to Rule 26(b)(1) and the standing committee's commentary with respect to its proposed 2015 changes to Rule 26(b)(1), the scope of discovery is limited to matter that is relevant to claims or defenses and is proportional to the needs of a case.”). An “objecting party must do more than simply recite boilerplate objections such as

overbroad, burdensome, oppressive or irrelevant.” Bd. of Trustees of the Univ. of Ill. v. Micron Tech., Inc., No. 2:11-cv-2288, 2016 WL 4132182, at *3 (C.D. Ill. Aug. 3, 2016). If a discovery request seeks relevant information on its face, the objecting party bears the burden of establishing that the requested discovery is not relevant or is “of such marginal relevance that the potential harm occasioned by discovery would outweigh the ordinary

presumption in favor of broad disclosure.” Cardenas v. Dorel Juvenile Grp., Inc., 232 F.R.D. 377, 382 (D. Kan. 2005). DISCUSSION I. DoLee’s Discovery Responses

The Court addresses the following requests for production implicated by Plaintiff’s Motion, as well as DoLee’s responses: REQUEST FOR PRODUCTION NO. 4: All communications with existing and former employees of Aceco that you identified in response to Interrogatory No. 4, including all documents exchanged with each such person. RESPONSE: / Brad Neal – discussed Mr. Neal coming to work for O.W. Valve and was hired. / Mike Reed, Leo Brown and David Hudgins – discussed the possibility of each of these individuals coming to work for O.W. Valve someday. To date, none have been hired. / David Hudgins – discussed with Mr. Hudgins about design engineering a new compact valve for O.W. Valve. No documents were exchanged with these individuals. REQUEST FOR PRODUCTION NO. 5: All communications with all distribution companies, customers, vendors, suppliers, or contractors of Aceco that you identified in response to Interrogatory No. 5, including all documents exchanged with each such person or entity. RESPONSE: None. REQUEST FOR PRODUCTION NO. 8: From January 1, 2021 to present, all of your personal cell phone statements, cell phone text messages to, from, or relating to Aceco, O.W. Valve, Aamir Mahmood, Bill Neiman, Patricia Wolf, Brad Neal, David Hudgins, Lynn Alger, the Lawsuit, and other records of cell phone data, including all such statements, text messages and other records of cell phone data for any cell phones you have used. RESPONSE: This Request is overbroad and unduly burdensome and costly. Wolf operates his life from his cell phone. He delivered his cell phone to the Plaintiff’s for ESI extraction on January 21, 2021. They already have all the requested information during the time of the allegations contained in their Complaint. This Request will not lead to discovery of admissible evidence and is irrelevant. It only purpose is to harass and cause financial and time burden to Wolf. Is the Plaintiff going to make this request every few months? REQUEST FOR PRODUCTION NO. 9: All communications with all prospective or existing owners or investors in O.W. Valve and all prospective or existing employees, contractors, or consultants of O.W. Valve, including all documents exchanged with each such person or entity. RESPONSE: Wolf is the only investor in O.W. Valve. / Brad Neal – discussed Mr. Neal coming to work for O.W. Valve and he was hired. / Mike Reed, Leo Brown and David Hudgins – discussed the possibility of each of these individuals coming to work for O.W. Valve someday. To date, none have been hired. No documents were exchanged with these individuals. / David Hudgins – discussed with Mr. Hudgins about design engineering a new compact valve for O.W. Valve. REQUEST FOR PRODUCTION NO. 12: All communications with Neal related to Aceco, Bill Neimann, Aamir Mahmood, or a new valve company, including but not limited to O.W. Valve. RESPONSE: Wolf communicates from his cell phone. Wolf delivered his cell phone to the Plaintiff’s for ESI extraction on January 21, 2021.

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Related

Cole's Wexford Hotel, Inc. v. Highmark Inc.
209 F. Supp. 3d 810 (W.D. Pennsylvania, 2016)
Cardenas v. Dorel Juvenile Group, Inc.
232 F.R.D. 377 (D. Kansas, 2005)

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