Alexander A. Stratienko, M.D. v. Cordis Corporation

429 F.3d 592, 78 U.S.P.Q. 2d (BNA) 1590, 2005 U.S. App. LEXIS 24838, 2005 WL 3078493
CourtCourt of Appeals for the Sixth Circuit
DecidedNovember 18, 2005
Docket04-6349
StatusPublished
Cited by67 cases

This text of 429 F.3d 592 (Alexander A. Stratienko, M.D. v. Cordis Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alexander A. Stratienko, M.D. v. Cordis Corporation, 429 F.3d 592, 78 U.S.P.Q. 2d (BNA) 1590, 2005 U.S. App. LEXIS 24838, 2005 WL 3078493 (6th Cir. 2005).

Opinion

ROGERS, Circuit Judge.

Plaintiff Dr. Alexander Stratienko, who created a catheter device and shared his design for that device with Defendant Cor-dis Corporation, brought this federal diversity suit against Cordis for misappropriation of a trade secret, wrongful benefit, and breach of contract. The district court granted summary judgment to Cordis, and Dr. Stratienko appeals. He challenges (1) the district court’s reliance on self-interested declarations of Cordis employees, (2) the district court’s determination that circumstantial evidence can never create a genuine issue of material fact in trade-secret cases, and (3) the district court’s determination that the Tennessee tort of conversion does not extend to conversion of trade secrets.

The district court properly relied on declarations of Cordis employees notwithstanding the employees’ self-interest. Also, although Tennessee law likely provides that Dr. Stratienko was entitled to an opportunity to demonstrate that Cordis used his catheter design by relying on circumstantial evidence, Dr. Stratienko failed to proffer sufficient evidence of similarity between his trade secret and Cordis’ catheter to create a genuine issue of material fact concerning use by Cordis of Dr. Stratienko’s secret. Summary judgment was, therefore, appropriate on his claims for misappropriation, wrongful benefit, and breach of contract. Dr. Stratienko’s other contentions on appeal are without merit, and we accordingly affirm the judgment of the district court.

I.

Dr. Stratienko’s device is a modified catheter used for gaining medical access to blood vessels. Cordis explained the conventional medical practice associated with catheters in the following manner, which is consistent with the description of conventional practice in Dr. Stratienko’s patent:

An interventional cardiology procedure generally begins by inserting a hollow needle into the femoral artery, which is located close to the surface of the skin in the groin area. A wire called a guidewire is then inserted through the needle into the artery, and the needle is withdrawn. Another device called a sheath is then inserted over the guide-wire into the artery. A sheath is a 4-9 inch hollow tube with a valve at the end which remains outside the body (“proximal end”). The valve prevents excess blood loss. The sheath remains in place throughout the procedure.
*595 Next, a 35-40 inch hollow tube called a guiding catheter is inserted through the sheath and into the artery. The guiding catheter has a soft, flexible tip at the end that is inserted into the patient (“distal end”). The distal end positions the catheter into a specific blood vessel within the heart (“coronary artery”). The guiding catheter also remains in place throughout the procedure. Other medical devices such. as angioplasty balloons and stents can be inserted through the-¡guiding catheter and into the patient’s coronary artery to treat the blockage.

Appellee’s Br. at 4-5.

Dr. Stratienko submitted a patent application for a “sheath catheter.” His design combines a sheath and a catheter with a preformed distal end. While the record is surprisingly unclear as to the benefits of the unified sheath-catheter, it appears that it allows a smaller puncture hole while providing necessary support during the invasive procedure. The preformed distal end is soft and flexible, which allows more precise engagement of targeted segments. His design also has holes at the end of the catheter, allowing direct delivery of x-ray contrast fluid to a segment of the targeted vessel; traditional delivery of contrast fluid must first displace blood to reach the intended segment.

On May 25, 1999, Dr. Stratienko, a Tennessee resident, sent a letter and Nondisclosure Agreement to Cordis Corporation. Cordis is a Florida corporation with its principal place of business in New Jersey,' and is a subsidiary of Johnson & Johnson. In August 1999, Cordis’ Associate Manager of Business Development William Scheessele proposed changes to the agreement and faxed them to Dr. 'Stratienko. Over a period of months, the parties negotiated the terms of the agreement. Cordis deleted portions regarding remedies for breach and regarding return of the materials. The agreement spieciflcally provided that Dr. Stratienko’s information was a trade secret. The parties executed the agreement in November 1999. On December 12, 1999, Dr. Stratienko submitted his patent application and a description of his “sheath catheter” to Scheessele.

Cordis’ internal written policy states that “Reviews [of submitted proposals] will be conducted by members of New Business Development, New Product Strategy, Legal, and to a lesser degree, senior members of R & D. It is our goal to minimize exposing our innovative engineering talent pool to external ideas, to safeguard our interests to our own internal inventions.” Scheessele provided Dr. Stratienko’s submitted material to' Cordis’ in-house counsel Paul Coletti in mid-December 1999. Both Scheessele and Coletti declare that they discussed Dr. Stratienko’s proposal, but they deny discussing the proposal with anyone else at Cordis or Johnson & Johnson. Scheessele declares that he kept the proposal in his locked file cabinet at all times, but Coletti cannot remember whether he placed the documents in a locked cabinet or safe. On January 17, 2000, Cordis advised Dr. Stratienko that Cordis was not interested in his proposal. Coletti returned the related documents, at the latest, by mid-February and kept no copies.

On April 7, 2000, Cordis submitted a combined sheath and guiding catheter, which it called the Vista Brite Tip Intro-ducer Guiding Catheter, for FDA approval. The FDA approved it on April 28, 2000. Cordis sales documents establish that Cordis manufactured and shipped “seventy-eight Vista Brite Tip IG Catheters as of May 29, 2000.”

Dr. Stratienko alleges that Cordis has given varying reasons for its rejection of his proposal. According to Dr. Stratienko, *596 Seheessele originally told him that Cordis was not interested, because Dr. Stratien-ko’s proposal was not within Cordis’ product-development budget, and Seheessele later told him that the company had no interest in his invention. Seheessele stated at his deposition that the proposal did not meet Cordis’ needs. Dr. Stratienko further alleges that Coletti told Dr. Stra-tienko’s patent attorney that a U.S. Patent (No. 5,066,285, the Hillstead Patent) disclosed a combination sheath-catheter method similar to Cordis’ Vista Brite Tip IG Catheter. Dr. Stratienko also stated in his affidavit that, for the first time in August 2002, Cordis informed him that another U.S. Patent (No. 5,897,497, the Fernandez Patent) disclosed the combination sheath-catheter. Cordis does not challenge that it gave Dr. Stratienko several reasons for its disinterest.

Dr. Stratienko filed suit in Hamilton County Circuit Court on November 21, 2001, and Cordis removed the case to the federal district court for the Eastern District of Tennessee in January 2002. Dr. Stratienko alleged that Cordis had misappropriated, converted, and wrongfully ben-efitted from his ideas; breached the Nondisclosure Agreement; and committed theft of a trade secret under Tennessee’s. Uniform Trade Secret Act, Tenn.Code Ann. §§ 47-25-1701

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429 F.3d 592, 78 U.S.P.Q. 2d (BNA) 1590, 2005 U.S. App. LEXIS 24838, 2005 WL 3078493, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alexander-a-stratienko-md-v-cordis-corporation-ca6-2005.