Crabar/GBF, Inc. v. Mark Wright

142 F.4th 576
CourtCourt of Appeals for the Eighth Circuit
DecidedJune 24, 2025
Docket23-3335
StatusPublished
Cited by4 cases

This text of 142 F.4th 576 (Crabar/GBF, Inc. v. Mark Wright) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crabar/GBF, Inc. v. Mark Wright, 142 F.4th 576 (8th Cir. 2025).

Opinion

United States Court of Appeals For the Eighth Circuit ___________________________

No. 23-3335 ___________________________

Crabar/GBF, Inc.

Plaintiff - Appellee

v.

Mark Wright; Wright Printing Co.; Mardra Sikora; Jamie Frederickson; Alexandra Kohlhaas

Defendants - Appellants ____________

Appeal from United States District Court for the District of Nebraska - Omaha ____________

Submitted: November 21, 2024 Filed: June 24, 2025 ____________

Before COLLOTON, Chief Judge, BENTON and KELLY, Circuit Judges. ____________

KELLY, Circuit Judge.

After an eleven-day trial, a jury found defendants Mark Wright, Wright Printing Co. (WPCO), Mardra Sikora, Jamie Frederickson, and Alexandra Kohlhaas liable for trade secret violations and related claims brought by Crabar/GBF, Inc. (Crabar). Defendants appeal the jury verdict and several of the district court’s1 pretrial and post-trial orders. We affirm.

I.

Prior to September 2013, WPCO manufactured various types of folders under the trade names Folder Express, Progress Publications, and Progress Publications Music. At all relevant times, Wright served as WPCO’s President and Owner and Sikora served as WPCO’s CEO. Also in the folder industry was Crabar, a subsidiary of a wholesale manufacturer and supplier of printed business products.

In September 2013, WPCO and Crabar entered an Asset Purchase and Sale Agreement (APA). Through this APA, WPCO agreed to sell its folder business to Crabar, including “all right and title to and interest in” “any and all customer lists, customer and prospect databases, customer sales information,” and “any Intellectual Property owned by [WPCO] and used in the Business.” WPCO also agreed not to disclose, for its or any other entity’s benefit, the identity of its customers, or any of its confidential information, including “all trade secrets,” and “information regarding the business of [WPCO], its manufacturing processes, methods of operation, products, financial data, sources of supply and customers.” In exchange, Crabar paid WPCO $15 million. After acquiring WPCO’s business, Crabar sold folders under the same trade names WPCO had used before the APA, and it operated out of a building owned and leased by WPCO.

In late 2015, after failed efforts to negotiate a longer-term lease with WPCO, Crabar moved its operations out of state, causing Crabar to lose 86 of its 90 employees. As a result, Crabar’s sales dropped significantly in late 2015 and early 2016. Crabar’s general manager testified that “things started to come together” in mid-2016, with “some more positive sales months.”

1 The Honorable John M. Gerrard, United States District Judge for the District of Nebraska. -2- Meanwhile, in mid-2016, WPCO launched a new folder business under the trade names “Pocket Folders Fast” and “Bandfolder Press.” Without Crabar’s knowledge—and despite the APA’s terms—Wright had retained on his personal laptop “[h]undreds, maybe thousands” of excel spreadsheets containing folder- related sales data, customer lists, and other similar information. Using this historical sales data, WPCO identified Crabar’s most popular products and then created an identical product line using WPCO’s old design and manufacturing specifications. Crabar’s general manager described WPCO’s access to all of these customer files, sales data, and design specifications as having the “keys to the kingdom,” because it allowed WPCO to “not only know what to produce, but [to] know how to produce it and [to] know who to produce it for or who to go back and target [with marketing].”

To aid in its new folder business, WPCO also relied on information from two former Crabar employees, Kolhaas and Frederickson. In May 2016, Kolhaas ended her employment with Crabar, but she retained 56 die template files 2 of Crabar’s most popular folders and sent them to WPCO. After starting work with WPCO, Kohlhaas used the files as “a reference” when creating WPCO’s new product line. Kohlhaas also retained a spreadsheet, referred to as the “die inquiry” spreadsheet. Kohlhaas sent the spreadsheet to Frederickson, who had left Crabar in 2014 and subsequently joined WPCO in January 2016. Frederickson admitted that this die inquiry spreadsheet had specific product information for over 4,500 of Crabar’s products and described the spreadsheet as “incredibly useful.”

Starting in July 2016 and going through January 2021, WPCO sold over $20 million worth of folders. Roughly 84 percent of WPCO’s $20 million total sales from this period came from selling identical products compared to Crabar’s top twenty highest selling products plus two other music folders.

2 A die template file is used to print and position artwork on custom folders. -3- II.

Crabar sued WPCO, Wright, Sikora, Frederickson, and Kohlhaas for trade secret violations and other related causes of action. The case went to trial, and the jury found each defendant liable on each count, returning a verdict of just over five million dollars in compensatory and exemplary damages. After resolving post-trial motions, the district court entered a final amended judgment of roughly four million dollars,3 comprised of $1,750,000 against Wright, $1,000,000 against WPCO, $1,250,000 against Sikora, $7,000 against Fredrickson, and $3,500 against Kohlhaas. Defendants appeal, challenging several of the district court’s rulings during and after trial.

III.

A.

We begin with Crabar’s breach of contract claim against WPCO based on the APA. WPCO argues the district court erred in denying its motion for judgment as a matter of law because, in WPCO’s view, § 8.6 of the APA precluded recovery of the type of damages awarded by the jury. But the district court found that the final pretrial order—signed by Crabar and WPCO following the pretrial conference—did not identify WPCO’s § 8.6 argument. See Fed. R. Civ. P. 16(d). Noting this omission, the district court denied WPCO’s motion, concluding WPCO waived its argument.

We review a district court’s denial of a motion for judgment as a matter of law de novo. Scott v. Dyno Nobel, Inc., 108 F.4th 615, 625 (8th Cir. 2024). We review a district court’s enforcement of a final pretrial order—including the district court’s determination of the pretrial order’s scope—for abuse of discretion. See

3 The jury awarded Crabar an additional $1,000,000 against Wright for breaching the APA, but the court set aside this award because Wright was not a party to the APA. -4- Hartis v. Chi. Title Ins. Co., 694 F.3d 935, 947 (8th Cir. 2012) (“[W]e will defer to the [d]istrict [c]ourt’s construction of its own order.” (quoting Brachtel v. Apfel, 132 F.3d 417, 420 (8th Cir. 1997))); see also Abellan v. Lavelo Prop. Mgmt., LLC, 948 F.3d 820, 830–31 (7th Cir. 2020) (reviewing district court’s determination that contractual provision fell within final pretrial order’s scope for abuse of discretion).

Under Federal Rule of Civil Procedure 16(d), “[a]fter any [pretrial] conference under this rule, the court should issue an order reciting the action taken. This order controls the course of the action unless the court modifies it.” Fed. R. Civ. P. 16(d). Consistent with this rule, we have observed that “[t]he issues identified at the final pretrial conference and the agreements and stipulations made there are incorporated into the final pretrial order, which thereafter ‘controls the course of the action.’” Klingenberg v.

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