Allied Erecting & Dismantling Co. v. Genesis Equipment & Manufacturing, Inc.

511 F. App'x 398
CourtCourt of Appeals for the Sixth Circuit
DecidedJanuary 8, 2013
Docket10-4180, 10-4583, 11-3008
StatusUnpublished
Cited by35 cases

This text of 511 F. App'x 398 (Allied Erecting & Dismantling Co. v. Genesis Equipment & Manufacturing, Inc.) 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
Allied Erecting & Dismantling Co. v. Genesis Equipment & Manufacturing, Inc., 511 F. App'x 398 (6th Cir. 2013).

Opinion

BARZILAY, Senior Judge.

This appeal arises out of numerous motions filed following a jury trial on the misappropriation of trade secrets. Appellants and Cross-Appellees Allied Erecting & Dismantling Co. and Allied-Gator, Inc. (collectively, “Allied”) appeal the district court’s jury instructions on lost-profits damages, its vacatur of the jury award for unjust-enrichment damages, and its denial of their motion for a permanent injunction. Allied also argues that the court should remand for a new trial on the issue of punitive damages, prejudgment interest, and attorney’s fees. Cross-Appellants and Appellees Genesis Equipment & Manufacturing, Inc. and Genesis Attachments, LLC (collectively, “Genesis”) and Mark Ramun, for their part, argue that the district court erred in not vacating the jury’s finding of misappropriation and, alternatively, that the court should remand for a new trial. For the reasons below, we REVERSE the district court’s vacatur of the jury award for unjust enrichment damages and AFFIRM on all other matters.

I. Background

Founded in 1973 as a family-owned business, Allied specializes in industrial dismantling and scrap processing. A773, A776-A777, A785. As such, Allied developed the Allied MT, a series of multipurpose demolition-machine attachments that allow the operator to switch more easily between instruments, including a “shear jaw set” (used to cut steel beams) and a concrete-crusher jaw set. A296-A315. Allied filed a patent application for the Allied MT with the World Intellectual Property Organization (“WIPO”) in April 2001, A2576, and received patents from the United States Patent and Trademark Office in 2006, A2653, A2698.

From May 1992 to June 2001, Mark Ramun worked as a manager of various departments at Allied. A1246. While at Allied, Mark Ramun had a tense relationship with his father, Allied’s president, John Ramun. A875-A877, A1392-A1394. The parties dispute whether he was fired or quit, but in 2001 Mark Ramun left Allied and in 2002 joined a competing company, A-Ward Attachments. A714, A739, A1394, A1469. When he left Allied, Mark *400 Ramun retained approximately 15,000 pages of Allied’s documents on DVDs and CDs, including information related to the Allied MT. A890, A1241-A1242.

Genesis also designs and manufactures industrial demolition and scrap-processing attachments. A716. In August 2003, the vice president of Genesis personally hired Mark Ramun for a sales position. A1864. Within one year, Mark Ramun was promoted to director of development and demolition services. A1426. At trial, Allied produced evidence that Mark Ramun personally worked with Genesis engineers developing the Genesis LXP (“LXP”), a demolition attachment that can accommodate interchangeable jaw sets, like the Allied MT, A1324, A1335-A1339, A1884-A1894, as well as evidence that the LXP and the Genesis Versi-Pro (“Versi-Pro”), a smaller version of the LXP, incorporated elements of the Allied MT’s design. A1328-A1329, A1497-A1498, A1562. Genesis earned approximately $14 million in gross revenue from its sale of LXPs. A1650, A1827.

Following the launch of the LXP, Allied and John Ramun filed suit in the District Court for the Northern District of Ohio for misappropriation of trade secrets in violation of the Ohio Uniform Trade Secrets Act (“OUTSA”) and the Lanham Act, and raised other state-law claims. Allied Erecting & Dismantling Co. v. Genesis Equip. & Mfg., Inc., 649 F.Supp.2d 702 (N.D.Ohio 2009). Upon reading Allied’s complaint, Mark Ramun installed file-deleting software on his laptop in an effort to destroy the information he had retained from Allied. A1250-A1258.

The district court granted Genesis’s motion for summary judgment as to Allied’s Lanham Act claim and most of its state-law claims, but denied it as to the OUTSA claim. See Allied Erecting & Dismantling Co., 649 F.Supp.2d 702. Following the trial, the jury found Genesis and Mark Ramun jointly and severally liable for misappropriation and awarded $3,046,800 in unjust-enrichment damages. See Allied Erecting & Dismantling Co. v. Genesis Equip. & Mfg., Inc., No. 4:06CV-114, 2010 WL 4818367, at *1, *14 (N.D.Ohio Nov. 19, 2010) (“Allied ”). The jury did not award Allied damages for lost profits, however, and (in a bifurcated proceeding) declined to award punitive damages against Genesis. Id. at *1. Following the verdict, the district court granted Genesis’s renewed motion for judgment as a matter of law and vacated the jury’s unjust-enrichment award. Id. at *29-30. This appeal ensued.

II. Discussion

A. The Jury’s Award of Unjust-Enrichment Damages

1. Standard of Review

The court reviews a district court’s decision regarding a renewed motion for judgment as a matter of law de novo. Stinson v. Crye-Leike, Inc., 198 Fed.Appx. 512, 514 (6th Cir.2006) (citation omitted). Judgment as a matter of law is appropriate only “[i]f a party has been fully heard on an issue during a jury trial and the court finds that a reasonable jury would not have a legally sufficient evidentiary basis to find for the party on that is-sue_” Fed.R.Civ.P. 50(a); see Kiphart v. Saturn Corp., 251 F.3d 573, 581 (6th Cir.2001) (“Judgment as a matter of law is appropriate only when there is a complete absence of fact to support the verdict, so that no reasonable juror could have found for the nonmoving party.” (internal quotation marks omitted)). When making its determination, the court may not “reweigh the evidence or assess the credibility of witnesses.” Arnold v. Wilder, 657 F.3d 353, 363 (6th Cir.2011). Instead, the court must view the evidence in the light most *401 favorable to the non-moving party and decide whether reasonable minds could only find in favor of the movant. E.g., Jordan v. City of Cleveland, 464 F.3d 584, 594 (6th Cir.2006) (citing Noble v. Brinker Int’l, Inc., 391 F.3d 715, 720 (6th Cir.2004)).

2. The district court’s vacatur of the jury award

Allied argues that the district court erred in granting judgment as a matter of law with respect to the jury’s award of unjust-enrichment damages. First Br. 31-36; Third Br. 4-16. As support, Allied relies on Plaintiffs’ Exhibit 95 — a 2006 Genesis budget that projected a 23% profit margin for the LXP for that year — as well as evidence that Genesis earned approximately $14 million in gross revenue from its sales of the LXP. First Br. 33-34. Genesis responds that Allied failed to establish that Genesis had in fact profited on the LXP and Versi-Pro, noting that Plaintiffs’ Exhibit 95 was a mere profit projection,

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