Delphi Automotive PLC v. Absmeier

167 F. Supp. 3d 868, 2016 WL 787137, 2016 U.S. Dist. LEXIS 25962
CourtDistrict Court, E.D. Michigan
DecidedMarch 1, 2016
DocketCase No. 15-cv-13966
StatusPublished
Cited by15 cases

This text of 167 F. Supp. 3d 868 (Delphi Automotive PLC v. Absmeier) 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
Delphi Automotive PLC v. Absmeier, 167 F. Supp. 3d 868, 2016 WL 787137, 2016 U.S. Dist. LEXIS 25962 (E.D. Mich. 2016).

Opinion

Opinion and Order Granting Plaintiff’s Motion for Preliminary Injunction [18]

HON. GERSHWIN A. DRAIN, United States District Court Judge

I. Introduction

Delphi Automotive PLC (“Plaintiff’) commenced the instant action against its former employee, John Absmeier (“Defendant”) on November 11, 2015. Dkt. No. 1. In its Amended Complaint, Plaintiff alleged that Defendant breached his contractual obligations, misappropriated trade secrets, and breached his fiduciary duties by terminating his employment with Plaintiff and accepting employment at Samsung. Dkt. No. 16, pp. 22-26 (Pg. ID No. 154-58).

Presently before the Court is Plaintiffs Motion for Preliminary Injunction, in which it seeks to enforce a restrictive covenant against Defendant, enjoin Defendant from disclosing any of Plaintiffs confidential or proprietary information, and order Defendant to return all of Plaintiffs property. Dkt. No. 18. The Court held a hearing on this Motion on February 28, 2016. After considering the briefs and oral argument of the parties, the Court will GRANT Plaintiffs Motion for Preliminary Injunction [18]. The Court’s reasoning is set forth in detail below.

II. Background

Defendant began his full-time employment with Plaintiff in 1999, working in engineering positions at Plaintiffs Koko-mo, Indiana office. Dkt. No. 18, p. 14 (Pg. ID No. 261). From 2001 to 2004, Defendant worked in Plaintiffs Rochester, New York office as a systems engineer. Id. Next, Defendant moved to Plaintiffs San Jose, California office to work as a project manager from 2004 to 2006. Id. In 2006, Defendant relocated to Shanghai, China, to work for Plaintiff as Business Director of Electronic Controls Asia-Pacific. Id. Six years later, in 2012, Defendant returned to work in the United States to work in Plaintiffs facility in Mountain View, California, titled “Delphi Labs @ Silicon Valley.” Id.

Defendant’s work at Delphi Labs @ Silicon Valley involved managing approximately 23 engineers and programmers on work related to advanced vehicular technology and autonomous driving. Id. at 14-15. Plaintiff promoted Defendant to the position of Director of Delphi Labs @ Silicon Valley on June 1, 2014. Id. at 15.

On June 27, 2014, Plaintiff had Defendant sign a Confidentiality and Noninterference Agreement as a condition’ to receive an Executive Restricted Stock Award. Id. The parties signed another two, substantively identical, agreements (collectively, “Agreements”) on March 5, 2015. Id. at 18. In these Agreements, Plaintiff restricted Defendant’s ability to seek “directly or indirectly” related employment and prohibit Defendant from sharing any “Confidential Information.” Id. at 16-17. The non-compete provisions forbid Defendant from “directly or indirectly engaging] in Competition” for one year; bans Defendant from engaging in solicitation of similar businesses, Plaintiffs customers, and Plaintiffs employee’s for two years; and prohibits Defendant from “otherwise interfering] with the Business of Delphi” for two years. Id. at 17.

“Competition” is defined as “any other business or organization anywhere in the world that competes, directly or indirectly, with Delphi in the Business.” Id. at 18. “Business” is defined as “creation, development, manufacture, sale, promotion, and distribution of vehicle electronics, transportation components, integrated systems and modules, electronic technology and other products and services which Delphi engages in, or is preparing to become en[874]*874gaged in, at the time of [Defendant’s] termination.” Id. Finally, the Agreements stipulate that they are governed by the laws of the State of New York, and that Michigan courts, either state or federal, will have jurisdiction over any matters arising out of the Agreements. Dkt. No. 18-2, p. 17 (Pg. ID No. 366).

Samsung began to express interest in Plaintiffs vehicle technology in May 2015, allegedly stating that it was “looking for partners to collaborate with in automotive.” Dkt. No. 18, p. 20 (Pg. ID No. 267). Samsung offered Defendant a position on October 30, 2015. Id. at 21. On November 10, 2015, Defendant gave official notice to Plaintiff of his intent to terminate his employment on November 24, 2015. Dkt. No. 31, p. 15 (Pg. ID No. 535). Plaintiff chose to end Defendant’s employment the day after he gave notice, on November 11, 2015. Id. The following day, November 12, 2015, Plaintiff served Defendant with this lawsuit. Id. Defendant started his employment with Samsung on November 30, 2015. Id. Defendant’s position with Samsung was titled, “Vice President, Smart Machines Initiative, Samsung Strategy and Innovation Center.” Dkt. No. 31-2, p. 15 (Pg. ID No. 571).

Additionally, Plaintiff claims that Defendant downloaded documents and files from his work computer onto external hard drives on May 14, October 15, October 28, and November 3, 2015. Dkt. No. 18, p. 22 (Pg. ID No. 269). Plaintiff argues that these files contained Delphi’s proprietary information, id., while Defendant contends that the downloads and deletions were harmless. Dkt. No. 31, p. 16. (Pg. ID No. 536).

Defendant states that the download activities on May 14th and October 15th reflected regular file back-up activities for his work computer. Dkt. No. 31-2, p. 9 (Pg. ID No. 565). Additionally, Defendant maintains that he was transferring personal photos and private files to an external hard drive on October 28th, with the belief that he could transmit work files back to Delphi during the exit process, should he decide to leave. Id. at 11. Defendant alleges that the November 3rd download was done for the purpose of ensuring that Delphi had a copy of work-related files to provide to the person who would assume his job duties after he left. Id. On November 11, 2015, when Plaintiff informed Defendant that his exit and transition process would take place remotely, Defendant asserts that Plaintiffs employees gave permission for him to delete personal files from his work computer and external hard drive, and observed him as he deleted files. Id. at 16.

Furthermore, Defendant states that he left his work computer and two external drives with Plaintiff as of November 11, 2015. Id. at 17. Defendant states that he returned other work items to Delphi as of November 17, 2015, including ten external thumb drives, a legal pad, and eleven notebooks. Id. at 18. The external hard drives that Defendant kept, containing a mix of Defendant’s personal files and Plaintiffs files, have been sequestered with a third-party forensic firm and Defendant has not accessed the drive since sending the drives to the firm. Id. at 18-19. Defendant’s counsel also directed the forensic firm to quarantine his Dropbox Account, which contained a mixture of personal files and Delphi files. Dkt. No. 31-3, p. 3 (Pg. ID No. 608). Finally, the forensic firm preserved all of Defendant’s emails in his personal Gmail account, and then deleted emails that were in a “Delphi” folder so that Defendant could no longer access them. Id. at 4.

III. Discussion

A. Contractual Choice of Law Provision

The parties dispute whether the instant action is governed by New York or [875]*875California law.

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167 F. Supp. 3d 868, 2016 WL 787137, 2016 U.S. Dist. LEXIS 25962, Counsel Stack Legal Research, https://law.counselstack.com/opinion/delphi-automotive-plc-v-absmeier-mied-2016.