Advanced Protection Technologies, Inc. v. Square D Co.

390 F. Supp. 2d 1155, 2005 U.S. Dist. LEXIS 28276, 2005 WL 1026025
CourtDistrict Court, M.D. Florida
DecidedApril 27, 2005
Docket2:04-cv-00161
StatusPublished
Cited by11 cases

This text of 390 F. Supp. 2d 1155 (Advanced Protection Technologies, Inc. v. Square D Co.) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Advanced Protection Technologies, Inc. v. Square D Co., 390 F. Supp. 2d 1155, 2005 U.S. Dist. LEXIS 28276, 2005 WL 1026025 (M.D. Fla. 2005).

Opinion

ORDER

BUCKLEW, District Judge.

This cause comes before the Court on Defendants’ Motion for Summary Judgment. (Doc. No. 54). Plaintiff opposes this motion. (Doc. No. 60).

I. Background

Plaintiff Advanced Protection Technologies, Inc. (“APT”) alleges the following in its Second Amended Complaint (Doc. No. 59): Plaintiff is engaged in the business of designing, manufacturing, and marketing transient voltage surge suppression (“TVSS”) equipment. TVSS equipment is designed to protect sensitive electronic equipment plugged into or connected to the wiring of a facility from lightning and other electrical transients. Defendant Square D Company (“SQD”), is one of America’s best-known brands of electrical distribution and control equipment.

In 1995, senior management of Plaintiff and SQD met and agreed to proceed in a joint venture between the two companies. The joint venture involved incorporating Plaintiffs TVSS equipment into SQD’s equipment. Initially, the resulting TVSS units were identified as SQD/APT prod- *1158 nets, so that SQD could enjoy the benefit of Plaintiffs existing reputation in the industry and SQD could obtain immediate access to engineers that had been specifying Plaintiffs products and jobs where Plaintiffs products were specified. In 1998, Plaintiff and SQD negotiated changes to the joint venture, which included creating an SQD branded product and line of TVSS equipment. Plaintiff and SQD also entered into a confidentiality agreement, in which they agreed that they would not utilize or disclose each other’s proprietary information.

In early 1999, without Plaintiffs knowledge, SQD began evaluating the potential purchase of Defendant EFI Electronics Corporation (“EFI”), a manufacturer of surge protection products and Plaintiffs competitor. The purpose of such purchase was to replace Plaintiff. SQD later decided to purchase EFI, but before making its offer to EFI, SQD met with Plaintiff to complete negotiations on the Brand Label Agreement in order to subsume Plaintiffs identity into SQD. This assured SQD of an uninterrupted source of product and gave SQD the time to complete the process of subsuming Plaintiffs identity into SQD and prepare EFI to replace Plaintiff.

In March of 2000, SQD acquired EFI. Thereafter, SQD began diverting Plaintiffs technical, financial, and marketing information to EFI. EFI and SQD created a project known as “Black Diamond” for the purpose of utilizing Plaintiffs technical, financial, and marketing information. In late 2002, once EFI was in a position to begin manufacturing and marketing the TVSS units based on Plaintiffs information supplied to it by SQD, SQD abruptly informed Plaintiff that EFI would begin manufacturing and selling the TVSS units that were previously produced by Plaintiff and that their joint venture was terminated. Thereafter, SQD misrepresented to customers who placed orders to purchase TVSS units that the units being purchased were the same units that had been manufactured by Plaintiff (when, in fact, the units were being manufactured by EFI). This misrepresentation allowed SQD (1) to substitute the EFI product on millions of dollars worth of previously quoted jobs that specified Plaintiffs product, (2) to take advantage of the fact that many engineers were loyal specifiers of Plaintiffs technology and thought that they were still getting the same product, and (3) to take advantage of the unique design and customer goodwill earned with Plaintiffs TVSS unit.

Plaintiff filed suit against SQD and EFI, asserting the following claims: (1) Count I against SQD: breach of fiduciary duties of a joint venturer; (2) Count II against SQD: violation of Florida’s Deceptive and Unfair Trade Practices Act (“FDUTPA”); (3) Count III against SQD: breach of the confidentiality agreement; (4) Count IV against EFI: unjust enrichment; (5) Count V against EFI: interference with a business advantage; (6) Count VI against SQD: estoppel; (7) Count VII against SQD and EFI: unfair competition; (8) Count VIII against SQD: violation of the covenant of good faith and fair dealing; (9) Count IX against SQD: breach of contract.

II. Standard of Review

Summary judgment is appropriate “if the pleadings, depositions, answers to interrogatories and admissions on file, together with the affidavits, if any, show that the moving party is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c). The moving party bears the initial burden of showing the Court, by reference to materials on file, that there are no genuine issues of material fact that should be decided at trial. See Celotex Corp. v. Catrett, 477 U.S. 317, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). When a moving party has *1159 discharged its burden, the non-moving party must then “go beyond the pleadings,” and by its own affidavits, or by “depositions, answers to interrogatories, and admissions on file,” designate specific facts showing there is a genuine issue for trial. Id. at 324, 106 S.Ct. 2548.

In determining whether the moving party has met its burden of establishing that there is no genuine issue as to any material fact and that it is entitled to judgment as a matter of law, the Court must draw inferences from the evidence in the light most favorable to the non-movant and resolve all reasonable doubts in that party’s favor. See Samples on Behalf of Samples v. City of Atlanta, 846 F.2d 1328, 1330 (11th Cir.1988). Thus, if a reasonable fact finder evaluating the evidence could draw more than one inference from the facts, and if that inference introduces a genuine issue of material fact, then the court should not grant the summary judgment motion. See Augusta Iron & Steel Works v. Employers Ins. of Wausau, 835 F.2d 855, 856 (11th Cir.1988).

III. Defendants’ Motion for Summary Judgment

Defendants make three arguments in support of their motion for summary judgment. First, Defendants argue that they are entitled to summary judgment on Counts I (breach of fiduciary duties of a joint venturer) and IV (unjust enrichment), and partial summary judgment on Counts III (breach of the confidentiality agreement) and V (interference with a business advantage), because no joint venture existed. Next, Defendants argue that they are entitled to summary judgment on Count I (breach of fiduciary duties of a joint ven-turer), because there was not a fiduciary relationship between Plaintiff and SQD. Finally, Defendants argue that they are entitled to summary judgment on Count II (FDUTPA), because Plaintiff cannot show that SQD violated FDUTPA. Accordingly, the Court will address each argument.

A Joint Venture

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Bluebook (online)
390 F. Supp. 2d 1155, 2005 U.S. Dist. LEXIS 28276, 2005 WL 1026025, Counsel Stack Legal Research, https://law.counselstack.com/opinion/advanced-protection-technologies-inc-v-square-d-co-flmd-2005.