American Furukawa, Inc. v. Hossain

103 F. Supp. 3d 864, 2015 U.S. Dist. LEXIS 59000, 2015 WL 2124794
CourtDistrict Court, E.D. Michigan
DecidedMay 6, 2015
DocketCase No. 14-cv-13633
StatusPublished
Cited by14 cases

This text of 103 F. Supp. 3d 864 (American Furukawa, Inc. v. Hossain) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Furukawa, Inc. v. Hossain, 103 F. Supp. 3d 864, 2015 U.S. Dist. LEXIS 59000, 2015 WL 2124794 (E.D. Mich. 2015).

Opinion

Opinion and Order Denying Defendant’s Motion for Partial Judgment on the Pleadings [30]

GERSHWIN A. DRAIN, District Judge.

I. Introduction .

American Furukawa, Inc. (“Furukawa” or “Plaintiff’) commenced the instant action against its former employee, Isthihar Hossain (“Defendant”), on September 19, 2014. See Dkt. No.-1. In the Complaint, Furukawa alleges that Hossain unlawfully accessed its computers to obtain confidential information in violation of the Computer Fraud and Abuse Act (“CFAA”), 18 U.S.C. § 1030. Additionally, Furukawa brings claims under Michigan law for Fraud, Breach of Contract, Breach of Fi-t duciary Duty, Misappropriation of Trade Secrets, and Conversion. Id.

When it filed the Complaint, Furukawa simultaneously moved for a Temporary Restraining Order (“TRO”). See Dkt. No. 4. On September 22, 2014, the Court entered a TRO enjoining Hossain from using Furukawa’s information, and ordering Hossain to show cause why a preliminary injunction should not be issued; account for and return Furukawa’s confidential information; and abide by a confidentiality agreement between the parties. See Dkt. No. 7. The parties entered a Stipulated Order leaving the terms of the TRO in place, while setting forth an agreed protocol for examining the computers and email accounts at issue. See Dkt. No. 18.

Presently before the Court is Defendant’s Partial Motion for Judgment on the Pleadings Pursuant to Rule 12(c) of the Federal Rules of Civil Procedure. See Dkt. No. 30. Furukawa filed a Response to Hossain’s Motion, but Hossain failed to file a Reply in accordance with the Court’s Local Rules. See E.D. Mich. L.R. 7.1(e)(1)(c). After reviewing the briefing, the Court concludes that oral argument will not aid in the resolution of this matter. Accordingly, the Court will resolve the Motion on the briefs as submitted. See E.D. Mich. L.R. 7.1(f)(2). For the reasons discussed herein, the Court will DENY Hossain’s Motion for Partial Judgment on the Pleadings Pursuant to Rule 12(c) of the Federal Rules of Civil Procedure [30].

[867]*867II. Factual BACKGROUND

American Furukawa, Inc. is a Delaware corporation and its principal place of business is located at 47677 Galleon Ct, Plymouth, Michigan. Furukawa is a supplier of advanced technology automotive, electronics and specialty products to several-high technology industries. Isthihar Hossain accepted employment with Furukawa in September, 2011 as a Power Systems Electrical Engineer. Hossain reported to Furukawa’s General Manager and Vice President.

When Hossain began his employment with Furukawa, Furukawa asserts that Hossain agreed to abide by Furukawa’s Policies regarding “Supplier and Vendor Information,” “Conflicts of Interest,” “Confidentiality,” “Outside Employment,” “Company Property” and “Removable Media Use.” Furukawa also asserts that Hos-sain entered into an Invention Assignment & Secrecy Agreement (“Secrecy Agreement”) with Furukawa, which dictated that Hossain “will regard and preserve as confidential all trade secrets pertaining to the Company’s business that have been or may be obtained by me by reason of my employment.” The Secrecy Agreement also dictated that Hossain would not “without prior authority from the Company to do so, use for my own benefit or purposes, nor disclose to others, either during my employment or thereafter” any trade secrets pertaining to Furukawa’s business.

By 2014, Hossain had become a Production Manager and Senior Production Manager with access to Furukawa’s trade secrets, know-how, intellectual property and other confidential information. On March 11, 2014, while he was still employed by Furukawa, Furukawa asserts that Hossain entered into an “Employment Agreement” (“Agreement”) with Huatong — a competitor and supplier to Furukawa. As part of Hossain’s alleged Agreement with Hua-tong, Hossain was to serve as CEO of a new sales company, American Huatong. Also on March 11, Furukawa asserts that Hossain downloaded 910 Furukawa files to his external hard drive without his manager’s permission.

On March 14, 2014, Furukawa states that Hossain called into Furukawa’s offices and indicated he was sick. Yet, on March 17, 2014, Furukawa asserts that Hossain downloaded another 875 Furukawa files and also moved two-and-a-half years of email from Furukawa’s exchange server to his external hard drive without his manager’s permission. While files were allegedly' being downloaded on March 17, 2014, Fu-rukawa states that Hossain informed Fu-rukawa he was unable to work due to a basketball injury. Notably, pursuant to his alleged Agreement with Huatong, Hos-sain was scheduled to begin his employment with Huatong on March 17, 2014.

As a result of his reported injury, Hos-sain was granted a leave of absence, commencing March 18, 2014. Critically, as a condition for granting the leave of absence, Furukawa asserts that, it instructed Hos-sain that he could not do “any work” for Furukawa during his leave of absence. Despite the instructions to the contrary, Furukawa asserts that Hossain accessed information on his company laptop and copied Furukawa files from his company email to his personal “gmail” account during his leave of absence. Furukawa purportedly did not learn of Hossain’s activities until the following chain of events raised suspicion.

On March 20, 2014, Huatong announced that it would no longer sell Electrical Submersible Pump (“ESP”) cables to the United States market through a partnership with Furukawa.. Huatong also announced that it would no longer sell service drop cables to Kingwire, and photovoltaic (“PV”) cables to the United States market, through Furukawa.

[868]*868On Thursday, April 24, 2014, Hossain sent an email to Furukawa’s Manager of Human Resources stating that his doctor had cleared him to return to work. On April 25, 2014, Furukawa claims Hossain reported for work late and left early. On Monday, April 28, 2014, Hossain announced that he was resigning his employment, effective May 2, 2014. Furukawa accepted Hossain’s resignation, effective April 29, 2014, and paid him through May 2, 2014.

Despite his alleged Agreement with Huatong, when he resigned his employment, Hossain allegedly indicated he did not “have another job lined up or anything,” but his “previous employer” had been contacting him, and he was “pretty sure” that he could get a job with them. Upon his departure from Furukawa, Hos-sain was asked to sign an “Employee Certification & Agreement on Termination,” certifying that he had returned all property belonging to the Company,, had complied with the Secrecy Agreement and would continue to abide by that Agreement. Hossain allegedly refused to sign.

On or about May 12, 2014, Furukawa learned that Huatong had approached WTEC — one of Furukawa’s customers— about buying cable from Huatong. On May 16, 2014, Furukawa received an email from WTEC regarding WTEC’s “compound” requirements and “payment terms.” The email from WTEC was addressed to Hossain at his former Furuka-wa email address. On May 30, 2014, WTEC confirmed that Hossain was acting as Huatong’s agent with respect to the sales negotiations between WTEC and Huatong.

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103 F. Supp. 3d 864, 2015 U.S. Dist. LEXIS 59000, 2015 WL 2124794, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-furukawa-inc-v-hossain-mied-2015.