Crom, LLC v. Preload, LLC

380 F. Supp. 3d 1190
CourtDistrict Court, N.D. Florida
DecidedMarch 31, 2019
DocketCase No. 1:16cv238-MCR/GRJ
StatusPublished
Cited by1 cases

This text of 380 F. Supp. 3d 1190 (Crom, LLC v. Preload, LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crom, LLC v. Preload, LLC, 380 F. Supp. 3d 1190 (N.D. Fla. 2019).

Opinion

M. CASEY RODGERS, UNITED STATES DISTRICT JUDGE

*1193Plaintiff Crom, LLC ("Crom") filed this suit against its former employee, Phuong Bacon ("Bacon"), to enforce a Non-Compete Agreement and for damages caused by Bacon's alleged breach of the Agreement and breach of her common law duty of loyalty (Counts I and II).1 Crom also pled claims against Bacon's current employer, Preload, LLC ("Preload"), alleging tortious interference with Crom's business relationship with Bacon (Count III), civil conspiracy (Count IV), and unfair competition (Count V). The claims all stem from allegations that Bacon misappropriated trade secrets and confidential information when she went to work for Preload, Crom's competitor. Pending before the Court is Defendants' Motion for Summary Judgment, ECF No. 59, and Motion to Strike affidavits pertaining to damages.2 ECF No. 65. Having fully reviewed the matter, the Court finds that the Motion for Summary Judgment is due to be granted in part and denied in part, and the Motion to Strike should be denied.

I. Background

Crom builds prestressed concrete tanks ("PCT") to store liquids, most often water or wastewater. According to Stephen Crawford, Crom's Vice President of Engineering, Crom uses standard industry design specifications titled AWWA D110 and ACI 372, and Crom primarily builds what is called an AWWA D110 Type II tank, to which ACI 372 criteria applies.3 Although Crom's basic design and construction process is publicly available on its corporate marketing brochure, ECF No. 60-1, at 28-32, 41, Crawford testified that Crom's "internal design procedures" and expertise from a design standpoint are what distinguish Crom from other companies. Id. at 65. He knows of only four companies competing in the United States in the PCT market--Crom, DN Tanks, PreCon Corp., and Preload. Id. at 125.

Preload, the competitor involved in this suit, bids against Crom for PCT design and construction projects in the Southeastern United States.4 In addition to its PCT work, primarily designing AWWA D110 Type III tanks (to which ACI 372 criteria applies), Preload is developing another tank design--a Liquefied Natural Gas *1194("LNG") storage tank. It is undisputed that Crom does not build or design LNG tanks, and that LNG tanks are subject to a separate industry design code. Id. at 131-132. However, an LNG tank can be built with a PCT (prestressed concrete) option, and in that instance, Crawford said the code requires the LNG tank to be designed in accordance with ACI 372 specifications, which are also used in PCTs. Id. at 130 (Crawford explained, "thus, a 372 tank design is an LNG tank design"). Crawford maintains that an LNG tank designed with prestressed concrete cannot be designed "per the code without designing it as an ACI 372 tank, and that is what Crom Corporation specializes in." Id. at 131.

Bacon worked as an engineer on Crom's PCT design team, most recently under the supervision of Stephen Crawford, from September 2007 through March 2016. Bacon gained all of her experience and specialized knowledge regarding prestressed concrete and PCT design from Crom. At the end of March 2016, she left to work for Preload on its design of LNG tanks using prestressed concrete. Her new boss at Preload, K. Ryan Harvey, had previously worked for Crom as Vice President of Engineering, and was aware of her Non-Compete Agreement with Crom.5

Crom filed this suit in June 2016, after Bacon went to work for Preload. Crom alleges that Bacon's employment with Preload violates her Non-Compete Agreement with Crom, which she signed when she began working as an intern; that Bacon misappropriated Crom's trade secrets and other confidential information when she went to Preload; and that Preload encouraged the breach, interfering with Crom's business relations in order to gain an unfair advantage in the PCT market. In defense, Preload asserts that the Non-Compete Agreement is not valid or reasonably related to Crom's legitimate business interests in the PCT industry, that there is no evidence that Bacon misappropriated trade secrets or confidential information, and that there is no evidence Crom was damaged by any perceived unfair advantage in the PCT industry or loss of profits as a result of Bacon's or Preload's actions. The facts relevant to these disputes are set out in greater detail below.

The record reflects that on September 24, 2007, while an engineering student, Bacon accepted a paid internship with Crom in its Gainesville, Florida, office. ECF. No. 59-1. The offer stated that she would be paid an hourly wage and would "work part time as an intern during [the] semester." Id. Within a few weeks of her employment, Bacon signed a Non-Compete Agreement, promising to not disclose Crom's trade secrets or confidential information during or after her employment (¶3), to return all of Crom's documents and records, including her work, upon her termination (¶4), and to not seek employment with a Crom competitor for a period of three years, "commencing with the date of the employee's termination with Crom" (¶5).6 No. 59-2. Harvey, who at that time *1195worked for Crom, signed Bacon's Non-Compete Agreement on behalf of Crom.

Bacon graduated with a Master's in Engineering in May 2010. On April 7, 2010, Crom offered her employment as a full-time Staff Engineer at its Gainesville, Florida, office, beginning May 15, 2010 (the 2010 Offer letter was revised on May 12, 2010).7 This 2010 Offer was contingent on a successful background screening and drug test and required Bacon to obtain licensure "within four years of her start date." ECF. No. 59-3. The 2010 Offer stated she was required to sign a Non-Compete Agreement on accepting the contingent offer. Id. Bacon accepted the 2010 Offer, but was never asked to execute another Non-Compete Agreement.8 Over the years, she received promotions from staff engineer to Engineer II (in 2013), and to Engineer III (in 2015). In 2013, when Bacon's husband obtained new employment, she and her family moved to South Carolina. Crom permitted Bacon to work remotely from her home office in South Carolina and provided her with equipment for her work, including a Crom computer and monitors, external hard drives, and USB flash drives.

While employed by Crom, Bacon worked on its PCT design engineering team, and Crawford, her supervisor, testified that she was dependable and hard working. Bacon primarily worked on design projects located in Tennessee, Georgia, North Carolina, Florida, Kentucky, Alabama, Virginia, South Carolina, Mississippi, Louisiana, and Puerto Rico. ECF No. 60-1, at 88-8. As a team member, Bacon prepared designs and drawings for "two-dimensional and three-dimensional structures, one-way and two-way slabs, plate and shell structures, scaffold and shoring formwork, and *1196prestressed elements using single wire and strand."9 ECF No. 60-1, at 76-77. In addition, she had access to computer design programs that Crom considers confidential, proprietary business information, as well as trade secrets.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
380 F. Supp. 3d 1190, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crom-llc-v-preload-llc-flnd-2019.