Cargill Incorporated v. Bingenheimer

CourtDistrict Court, E.D. Wisconsin
DecidedMarch 19, 2020
Docket2:17-cv-00300
StatusUnknown

This text of Cargill Incorporated v. Bingenheimer (Cargill Incorporated v. Bingenheimer) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cargill Incorporated v. Bingenheimer, (E.D. Wis. 2020).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF WISCONSIN

CARGILL INCORPORATED, Plaintiff/Counter-Defendant,

v. Case No. 17-CV-300

DAVID BINGENHEIMER, Defendant/Counter-Plaintiff.

ORDER Both parties have filed motions for summary judgment. Bingenheimer has moved for summary judgment on Cargill’s claims of misappropriation of trade secrets in violation of state and federal law, breach of various duties, tortious interference with prospective economic relations, and conversion, and his own counterclaims. ECF No. 46. Cargill has moved for summary judgment on Bingenheimer’s counterclaims of tortious interference of a contract and defamation. ECF No. 54. For the reasons that follow, I GRANT in part and DENY in part Cargill’s motion, and DENY Bingenheimer’s motion. I. BACKGROUND David Bingenheimer worked for Cargill as a Global Technology Manager, focusing on business development, technical expertise, and customer support for dielectric-fluids.1 ECF No. 56, ¶ 1. For its dielectric-fluid business, Cargill invested significant resources into developing formulas, business plans, customer lists, vendor lists, pricing and sales data, financial information, operating procedures, trade secrets, and confidential information to give it a competitive advantage. Id. at ¶ 4. Before Cargill,

1 Dielectric-fluids are used for equipment like electrical transformers, as well as insulators in high-voltage applications, such as transformers, capacitors, high-voltage cables, and switchgear. ECF No. 56, ¶ 2. Bingenheimer worked for Cooper Power Systems (“CPS”), which is the company that originally developed the knowledge and trade secrets relating to dielectric-fluids, including the use of Envirotemp FR3™ (“FR3”) in electrical transformers. Id. at ¶¶ 5-6. While at CPS, Bingenheimer worked as Global Product Line Manager for FR3 dielectric- fluids, which allowed him access to unique testing and product data.2 Id. at ¶ 7.

A. Bingenheimer at Cargill In June 2012, Cargill bought Cooper’s dielectric-fluid business. Id. at ¶ 10; ECF No. 65, ¶ 1. As part of this deal, Cargill licensed all of CPS’s trade secrets and confidential proprietary information and product data relating to FR3. ECF No. 56, ¶ 10. On July 2, 2012, Bingenheimer started working at Cargill as a Product Manager, later being promoted to Global Technology Manager for the dielectric-fluid business. Id. at ¶ 11. Bingenheimer was responsible for managing personnel, resolving operational issues, and representing Cargill at industry events. Id. at ¶ 12. Bingenheimer was also involved in the technology, marketing, and sales of dielectric-fluids. Id. Bingenheimer

was one of very few Cargill employees who had comprehensive knowledge about certain dielectric-fluids such as FR3 and the dielectric-fluids market and had access to Cargill’s most sensitive and valuable business information, including product formulas, profit margins, and customer revenues. Id. at ¶ 13. Throughout his employment with Cargill, Bingenheimer had access to Cargill’s most sensitive and confidential information about FR3, including all testing data and technology strategies, global commercial

2 While Bingenheimer worked for CPS, Cargill and CPS had an agreement where Cargill manufactured FR3 for CPS, which CPS would then sell part of its transformer business. Id. at ¶ 8. CPS had a patent covering the use of dielectric-fluids in transformers in North America; the U.S. patent expired in late 2015 and the other North and South American patents expired at various times soon after. Id. at ¶ 9; ECF No. 65, ¶ 3. strategies, competitive information and strategies, customer tactics, sales pricing, and volumes.3 Id. at ¶ 14. B. Bingenheimer is laid off by Cargill On November 21, 2016, as part of a restructuring, Bingenheimer was laid-off.4 Id.

at ¶ 21. After his separation meeting on November 22, Cargill gave Bingenheimer several days to remove personal items from his company computer. Id. at ¶ 25. Cargill alleges that this is when Bingenheimer “stole” its confidential information and trade secrets, downloading this information from his Cargill computer onto a USB flash drive. Id. at ¶¶ 26-27. According to Cargill, Bingenheimer downloaded sensitive and confidential documents relating to budgeting, formulas, technology and business strategies, financial information, sales and growth plans, and information on Cargill’s customers, in a “carefully orchestrated” effort. Id. at ¶¶ 29-30. Bingenheimer also kept such documents on a flash drive, which had copies of business plans and strategies prepared by Bingenheimer and his Cargill co-workers for how Cargill would pursue

business in every region where Cargill sold dielectric-fluids. Id. at ¶¶ 31-33. When Bingenheimer returned his company computer on November 29, he did not return either the downloaded documents or the flash drive. Id. at ¶ 36. Bingenheimer disputes this “carefully orchestrated” characterization, stressing that much of this information was simply not confidential; regardless, Bingenheimer never communicated this information

3 To protect its trade secrets and confidential information from unauthorized disclosure, Cargill restricts access to such information to employees who have a legitimate need for the information. Id. at ¶ 15. 4 On November 29, Bingenheimer signed and returned a separation agreement that required the return of “all files, memoranda, documents, records, copies of the following, credit cards, keys and any other property of Employer in Employee’s possession” and that “[a]ny proprietary and confidential information and trade secrets that Employee received during Employee’s employment that is not in the public domain shall be kept completely confidential and will not be shared by Employee with anyone.” Id. at ¶¶ 23-24. See also ECF No. 56-8, § 7 (Separation Agreement, “COMPANY PROPERTY”); ECF No. 12, ¶ 56. to anyone, and Cargill was never deprived of this information or its use. ECF No. 61, ¶¶ 28-33. Rather, Bingenheimer did not turn in the flash drive because he was referencing work-related information while job-searching, something he did not think was abnormal nor intended to be duplicitous. Id. at ¶¶ 34-35.

C. Bingenheimer begins working for M&I On November 28, 2016, Bingenheimer was contacted by a corporate recruiter who notified Bingenheimer that there was a job opportunity with M&I Materials (“M&I”), a significant competitor to Cargill. ECF No. 56, ¶ 39. On December 2, Bingenheimer discussed potential employment with Alonso Castillo, an M&I executive, and met with Castillo for an in-person interview on December 13. Id. at ¶¶ 41, 43; ECF No. 65, ¶ 19. Between the initial call and the in-person meeting, Bingenheimer accessed his Cargill salesforce.com account and downloaded several documents, including a business plan for Europe, carbon footprint and dielectric-fluid product flow charts, a formula, and a sales presentation for FR3, to a flash drive. ECF No. 61, ¶¶ 40, 42, 44-45.

Bingenheimer denies communicating any confidential information and that other documents that Cargill points to were not confidential. Id. On January 30, 2017, Bingenheimer accepted an offer to join M&I as VP of Business Development and develop a new division to generate business in North America to compete directly against Cargill for the sale of dielectric-fluids in transformers. ECF No. 56, ¶¶ 54-55. Starting February 1, Bingenheimer again accessed information from his time at Cargill, including documents identifying Cargill’s top customers, product-design documents and FR3-specfic documents, information that he denies sharing. Id. at ¶¶ 56-57. Bingenheimer visited M&I’s offices in Georgia on February 6, and M&I’s headquarters in Manchester, England on February 15. Id. at ¶¶ 58-59.

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