Babcock & Wilcox Solar Holdings, LLC, et al. v. James Jackson, et al.

CourtDistrict Court, N.D. Ohio
DecidedOctober 24, 2025
Docket5:24-cv-00910
StatusUnknown

This text of Babcock & Wilcox Solar Holdings, LLC, et al. v. James Jackson, et al. (Babcock & Wilcox Solar Holdings, LLC, et al. v. James Jackson, et al.) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Babcock & Wilcox Solar Holdings, LLC, et al. v. James Jackson, et al., (N.D. Ohio 2025).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF OHIO EASTERN DIVISION

BABCOCK & WILCOX SOLAR ) HOLDINGS, LLC, et al., ) CASE NO. 5:24-cv-00910-CEF ) B&W, ) JUDGE CHARLES E. FLEMING ) v. ) ) JAMES JACKSON, et al., ) ) MEMORANDUM OPINION AND Defendants. ) ORDER

I. FACTUAL BACKGROUND

Defendants James Jackson and Collin Rhodes (collectively, “Defendants”) were employees of B&W Babcock & Wilcox Solar Holdings, LLC (“B&W Holdings”), and Babcock & Wilcox Solar Energy, Inc. (“B&W Energy”) (collectively, “B&W”) until they were “involuntarily separated” from their employment in 2023. (ECF No. 1, Compl., PageID #6–8). As part of their involuntary separation and in exchange for severance pay, Defendants each signed a Confidentiality “Pledge” and Separation Agreement that forbade them from disclosing confidential information and trade secrets. (Id.). B&W paid Jackson and Rhodes $84,615.38 and $34,961.54 in severance, respectively. (Id. at PageID #7–8). In 2024, B&W learned that Defendants provided affidavits (the “Jackson Affidavit” and the “Rhodes Affidavit”) on behalf of plaintiffs in four lawsuits against B&W in New York state court. (Id. at PageID #8). The affidavits alleged, among other things, that: • B&W Energy lacked corporate autonomy because B&W Holdings made all financial/economic decisions (ECF No. 1-1, PageID #46; 52; 58; 64; 69; 73; 77; 81); • B&W Solar was undercapitalized, relied on influxes of cash from B&W Holdings to remain operational, and commingled funds with B&W Holdings (Id. at PageID #47; 53; 59; 65); • B&W’s business practices included declining to pay subcontractors for work when

there was no written agreement in place (Id. at PageID #48–49; 54–55; 60–61; 66– 67; 70–71; 74–75; 78–79; 82–83); and • B&W Solar commingled funds between projects (Id. at PageID #49; 55; 61; 67). B&W alleges that Defendants filed these affidavits as retribution because B&W fired Defendants, and that Jackson “solicited, incented and enticed Rhodes” to file an affidavit. (Id. at PageID #20–21). B&W alleges that the Affidavits contain “some information that was B&W’s confidential information and trade secrets,” and that Defendants must have disclosed additional confidential information and trade secrets to counsel for the plaintiffs and to plaintiffs in the New York lawsuits against B&W to prepare the affidavits. (Id. at 9–12).

On May 22, 2024, B&W filed a complaint against Defendants alleging misappropriation of trade secrets concerning information contained in a series of affidavits sworn by Jackson and Rhodes in four lawsuits pending in New York state court. (ECF No. 1). B&W brings claims for breach of contract (Counts I and II), violations of the Defend Trade Secrets Act, 18 U.S.C. § 1836 (Counts III and IV), violations of the Ohio Uniform Trade Secrets Act, Ohio Rev. Code Ann. §§ 1333.61, et seq. (Counts V and VI), tortious interference with contract (Count VII), tortious interference with business relationships (Count VIII), and civil conspiracy (Count IX). (Id. at PageID #11–24). B&W seeks compensatory damages, injunctions, costs and attorney’s fees. (Id. at PageID #24–27). II. DEFENDANTS’ MOTION TO DISMISS Defendants have asked the Court to dismiss B&W’s complaint under Fed. R. Civ. P. 12(b)(1) and (6). (ECF No. 11). Defendants argue that this Court should dismiss the Defend Trade Secrets Act (DTSA) and Ohio Uniform Trade Secrets Act (OUTSA) claims because B&W fails to allege that Defendants misappropriated protectable trade secrets. (ECF No. 11, PageID #119–24).

Defendants also argue that if the Court dismisses the DTSA claim, then it should dismiss all other claims because it lacks jurisdiction over the remaining state law claims. (Id. at PageID #123). Defendants’ motion asks the Court to dismiss under Rule 12(b)(6): (1) B&W’s other state law claims because OUTSA preempts them (Id. at PageID #127–28); (2) the tortious interference with contract claim because it is too speculative (Id. at PageID #125); (3) the tortious interference with business relationships claim because it does not identify the business relationships that Defendants allegedly interfered with (Id. at Page ID# 126); (4) the breach of contract claim because Plaintiff fails to allege that Defendants breached any of their agreements (Id. at PageID #128–29); and (5) the civil conspiracy claim because B&W must base this claim on an unlawful act not

including breach of contract, and if the Court dismisses the other claims then there is no underlying claim to support it (Id. at PageID #130–31). B&W responds that the Court should not dismiss any of their claims because B&W sufficiently alleges, in a short and plain statement as required by Rule 8(a), that Defendants misappropriated trade secrets under DTSA and OUTSA. (ECF No. 12, PageID #162–165). B&W also argues that even if the Court dismisses the DTSA claim, it still has subject matter jurisdiction because the parties are diverse and the amount in controversy exceeds $75,000. (Id. at PageID #159–160). Regarding its tortious interference with contract claim, B&W asserts that OUTSA does not preempt it because that claim is based on independent factual bases—namely, the substance and timing of an email sent by Jackson, which B&W categorizes as “threatening.” (Id. at PageID #167). Similarly, B&W’s tortious interference with business relationships claim is based on Defendants’ intent that the affidavits induce third parties not to do business with B&W. (Id. at PageID#166). B&W claims that it properly pleaded its breach of contract claims by alleging that Defendants agreed not to disclose confidential information, and that Defendants breached that

obligation by signing the affidavits. (Id. at PageID #165). Finally, B&W based the civil conspiracy claim on Defendants’ alleged breach of their respective Pledges and Agreements, in retribution for their respective separations of employment, which is in addition to Defendants’ misappropriation of trade secrets. (ECF No 1, PageID#23–24). Defendants filed a reply brief in support of their Motion (ECF No. 13), and the matter is now ripe for adjudication. III. MOTION STANDARD Defendants move to dismiss Plaintiff’s Complaint under Fed. R. Civ. P. 12(b)(1) and 12(b)(6). (ECF No. 11). The Court must first determine whether it has subject matter jurisdiction under Rule 12(b)(1), since lack of subject matter jurisdiction renders Defendants’ Rule 12(b)(6)

motion moot. Moir v. Greater Cleveland Reg’l Transit Auth., 895 F.2d 266, 269 (6th Cir. 1990) (citing Bell v. Hood, 327 U.S. 678, 682 (1946)). A motion to dismiss pursuant to Rule 12(b)(1) may take the form of either a facial or factual attack. United States v. Ritchie, 15 F.3d 592, 598 (6th Cir. 1994). Facial attacks challenge the sufficiency of the pleading itself. Id. When adjudicating a motion to dismiss based upon a facial attack, the court must accept all material allegations of the complaint as true and must construe the facts in favor of the non-moving party. Id. (citing Scheuer v. Rhodes, 416 U.S. 232, 235–37 (1974)).

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Babcock & Wilcox Solar Holdings, LLC, et al. v. James Jackson, et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/babcock-wilcox-solar-holdings-llc-et-al-v-james-jackson-et-al-ohnd-2025.