AMERICAN BIOMEDICAL GROUP, INC. v. TECHTROL, INC.

2016 OK 55
CourtSupreme Court of Oklahoma
DecidedMay 17, 2016
StatusPublished

This text of 2016 OK 55 (AMERICAN BIOMEDICAL GROUP, INC. v. TECHTROL, INC.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
AMERICAN BIOMEDICAL GROUP, INC. v. TECHTROL, INC., 2016 OK 55 (Okla. 2016).

Opinion

OSCN Found Document:AMERICAN BIOMEDICAL GROUP, INC. v. TECHTROL, INC.

AMERICAN BIOMEDICAL GROUP, INC. v. TECHTROL, INC.
2016 OK 55
Case Number: 113978
Decided: 05/17/2016
THE SUPREME COURT OF THE STATE OF OKLAHOMA


Cite as: 2016 OK 55, __ P.3d __

NOTICE: THIS OPINION HAS NOT BEEN RELEASED FOR PUBLICATION. UNTIL RELEASED, IT IS SUBJECT TO REVISION OR WITHDRAWAL.


AMERICAN BIOMEDICAL GROUP, INC.; ABG CATTLETRAQ, LLC; and JAMES BURGESS, Plaintiffs/Appellants,
v.
TECHTROL, INC. and WILLIAM ARDREY, Defendants/Appellees.

ON CERTIORARI FROM THE COURT OF CIVIL APPEALS,
DIVISION I

¶0 Plaintiffs brought claims for conversion of personal and intellectual property and for unjust enrichment. Defendants sought partial summary adjudication on the two claims, urging that Oklahoma does not recognize a tort for misappropriation of intangible property not rising to the level of trade secret and that Plaintiffs had an adequate remedy at law preventing them from bringing a claim for unjust enrichment. The district court rendered partial summary adjudication on the two claims in Defendants' favor. The Court of Civil Appeals affirmed, finding that pursuant to Section 92, the Oklahoma Uniform Trade Secrets Act , 78 O.S.2011, § 92, displaced Plaintiffs' common-law claims. This Court granted certiorari.

COURT OF CIVIL APPEALS' OPINION VACATED;
REVERSED AND REMANDED FOR FURTHER PROCEEDINGS.

Murray E. Abowitz, Abowitz, Timberlake & Dahnke, P.C., Oklahoma City, Oklahoma, for Appellants.
James W. Tilly, The Tilly Law Firm, Tulsa, Oklahoma, for the Appellees.

TAYLOR, J.,

¶1 The question before this Court is whether Defendants supported their motion for summary judgment with undisputed, material facts sufficient to warrant the district court granting partial summary adjudication in their favor. We answer in the negative.

I. STANDARD OF REVIEW

¶2 Partial summary adjudication, like summary judgment, settles only questions of law. See Pickens v. Tulsa Metropolitan Ministry, 1997 OK 152, ¶ 7, 951 P.2d 1079, 1082.The standard of review of questions of law is de novo. Id. Summary judgment or a partial summary adjudication will be affirmed only if the appellate court determines that there is no dispute as to any material fact and that one party is entitled to judgment as a matter of law. See id. A partial summary adjudication will be reversed if the appellate court determines that reasonable people might reach different conclusions from the undisputed material facts. See Runyon v. Reid, 1973 OK 25, ¶15, 510 P.2d 943, 946.

¶3 Under this standard, we confine our review to the limited, undisputed, material facts. Frey v. Independence Fire and Cas. Co., 1985 OK 25, ¶ 6, 698 P.2d 17, 20 ("The ruling on a motion for summary judgment must be rested on the record which is then before the court rather than on one that could have been assembled."). We do not consider Defendants' factual allegations included in their appellate paperwork which they failed to include as undisputed, material facts or support with evidentiary materials in the district court. See id.

II. RELEVANT PROCEDURAL HISTORY

¶4 This legal battle began in 2006 when American Biomedical Group, Inc. (ABGI) and ABG Cattletraq, LLC (Cattletraq) filed a petition in the district court against Techtrol, Inc. and William Ardrey (Defendants); Defendants then filed a counterclaim. ABGI and Cattletraq dismissed their claims and causes of action against Defendants (without prejudice), leaving Defendants' counterclaim pending. Two years later, Defendants filed a petition in the same court against ABGI, Cattletraq, and James Burgess, their sole shareholder and CEO (Plaintiffs).

¶5 On March 16, 2009, Plaintiffs filed another petition in the district court, alleging that Defendants "wrongfully exercised dominion and control over plaintiffs' personal and intellectual property" and "willfully, deliberately and maliciously converted plaintiffs' personal and intellectual property" for their own benefit. Plaintiffs sought damages based on Defendants' unjust enrichment from the conversion. The district court consolidated the three cases. When the cases were consolidated, Defendants' counterclaim, Defendants' petition alleging abuse of process, and Plaintiffs' petition alleging causes of action for conversion and unjust enrichment remained pending before the district court.

¶6 On October 29, 2014, Defendants moved for summary judgment on Plaintiffs' claim for conversion, asserting that Oklahoma does not recognize a tort for conversion of intangible property, and for unjust enrichment, asserting Plaintiffs' claim was precluded because they had an adequate remedy at law for breach of contract. The statement of undisputed, material facts in Defendants' motion for summary judgment listed the pleadings filed and an excerpt from a deposition.1 The only undisputed, material facts alleged by Defendants were (1) Plaintiffs filed a claim for the willfull, deliberate, and malicious conversion of their personal and intellectual property and a claim for unjust enrichment caused by the conversion, and (2) part of Plaintiffs' claims are based on a nondisclosure agreement (NDA). Plaintiffs' response admits the excerpt is from a deposition and alleges twenty-one additional facts, with supporting evidentiary materials, that they contend may or may not be disputed and preclude summary judgment in Defendants' favor. Plaintiffs urged that (1) Oklahoma does recognize a cause of action for conversion of both personal and intellectual property which, in this case, is not preempted by the Oklahoma Uniform Trade Secrets Act (OUTSA), 78 O.S.2011, §§ 85-94, (2) they had pled facts sufficient to make a prima facie claim of misappropriation under the OUTSA, and (3) they do not have an adequate remedy at law which would bar their claim for unjust enrichment.

¶7 Defendants and Plaintiffs each filed an additional brief, somewhat altering their arguments. Defendants submitted that the OUTSA preempts Plaintiffs' conversion and unjust enrichment claims, that Plaintiffs admitted that they had no contractual remedy under the NDA, and that Plaintiffs' admitted failure to identify its intellectual and personal property as confidential under the NDA barred relief under the OUTSA.

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