Giasson Aerospace Science, Inc. v. RCO Engineering, Inc.

680 F. Supp. 2d 830, 2010 WL 360419, 2010 U.S. Dist. LEXIS 4956
CourtDistrict Court, E.D. Michigan
DecidedJanuary 22, 2010
DocketCase 08-13667
StatusPublished
Cited by14 cases

This text of 680 F. Supp. 2d 830 (Giasson Aerospace Science, Inc. v. RCO Engineering, Inc.) 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
Giasson Aerospace Science, Inc. v. RCO Engineering, Inc., 680 F. Supp. 2d 830, 2010 WL 360419, 2010 U.S. Dist. LEXIS 4956 (E.D. Mich. 2010).

Opinion

OPINION AND ORDER DENYING DEFENDANT’S MOTION FOR PARTIAL SUMMARY JUDGMENT

ROBERT H. CLELAND, District Judge.

Pending before the court is Defendant’s “Motion for Partial Summary Judgment on Count VIII, Trade Secret Misappropriation.” For the reasons below, the court will deny Defendant’s Motion.

I. BACKGROUND

Plaintiffs’ claim is, in essence, a simple one: Defendants used Plaintiffs’ expertise in designing aircraft seats to secure a lucrative contract and then cut Plaintiffs out of the deal so it would not have to share its profits. Plaintiffs allege that in November 2007, Defendants agreed to partner with them and pursue a contract with Gulf-stream Aerospace (“Gulfstream”) to manufacture luxury aircraft seats for Gulf-stream’s G650 business jets. 1 The alleged *833 partnership was formed to allow the parties to respond to Gulfstream’s Request for Proposals (“RFP”). According to Plaintiffs, the gist of the agreement was that Plaintiffs would “design and engineer an aircraft cabin seat ... and [Defendant] would build [Plaintiffs’] seat.” (Pis.’ Summ. J. Resp. vii.)

Stephen Brown, a designated engineering representative (“DER”), was hired by Plaintiff to work as a subcontractor on the project with Defendant. According to Plaintiffs, Brown was to be the “lead engineer” on the project. (Pis.’ Summ. J. Resp. Ex. 2G.) Brown’s testimony, which was given pursuant to Federal Rule of Civil Procedure 30(b)(6), is critical to the resolution of this motion. Plaintiffs rely almost exclusively on Brown’s deposition to support the alleged trade secrets.

A proposal was submitted to Gulfstream in December 2007. (Def. Summ. J. Mot. Br. iii; Pis.’ Summ. J. Resp. x.) Plaintiffs claim that the proposal was “entirely prepared by Giasson.” (Pis.’ Summ. J. Resp. x.) After the initial proposal, called a “Technical Response,” was submitted to Gulfstream, Gulfstream sent several sets of questions about the proposal to Defendant. Plaintiffs allege that they prepared the responses to these questions, “Go Back” responses, and incorporated the Go Back responses into a modified Technical Response, which was submitted to Gulf-stream in early March 2008. Id.

Defendant asserts that by January 2008 Gulfstream had begun staffing its own design and styling department, and that Gulfstream informed both Plaintiffs and Defendant that it may use its in-house design team for the G650 seats. (Def. Summ. J. Mot. Br. Ex. 4. ¶¶ 7-8.) Defendant also asserts that Gulfstream asked why Defendant was still working with Plaintiffs. Id. Plaintiffs question the accuracy of this statement, and draw a distinction between “styling” and design. Styling is, apparently, defining the aesthetic aspects of the seat, while design includes the structural engineering of the seat. (Pis.’ Summ. J. Resp. xi-xii.) They argue that while it was clear that Gulfstream intended to perform styling in-house, design was to be performed by Plaintiffs and Defendant. Id. Defendant asserts that Gulfstream decided to do the design work in-house, and that it therefore continued with the Gulf-stream project after informing Plaintiffs that their services were no longer necessary. (Def.’s Summ. J. Mot. Br. iii-iv.) In the court’s view, the heart of the dispute lies here: Defendant claims that it had the right to divorce itself of Plaintiffs, but Plaintiffs assert that they had an agreement to partner with Defendant and that Defendant breached this agreement by using Plaintiffs’ intellectual property and labor without giving Plaintiffs their due.

A. Plaintiffs’ Trade Secrets 2

In its “Motion for Partial Summary Judgement,” Defendant argues that Plaintiffs do not possess any trade secrets. 3 *834 The parties dispute the exact nature of Plaintiffs’ trade secrets. Defendant suggests that Plaintiffs allege twenty-two separate trade secrets, (Def.’s Summ. J. Mot. Br. iv), while Plaintiffs maintain that they claim trade secrets in twenty-two “categories,” (Pis.’ Summ. J. Resp). This distinction is largely immaterial. The parties have reasonably identified the trade secrets and whether the court considers then as comprised of twenty-two secrets or twenty-two categories of secrets, at this point, appears to be a mere semantic distinction.

Plaintiffs claim as trade secrets the following:

(1) Seat-base design.

According to Brown, the Giasson seat base’s single “monolithic” structure with its specific shape and geometry is unknown to the aircraft industry. (Brown Dep. at 93, Def.’s Summ. J. Mot. Br. Ex. 2.) The trade secret also included a new assembly process that uses “molding.” (Id. at 97.) According to Plaintiffs, the base provides several benefits over a traditional aircraft seat base, including weight reduction, an improved assembly process, improved load distribution, less vibration and seat movement, reduced stress loads during testing, and a concomitant cost reduction in the certification process. (Brown Dep. at 90-100.)

(2) Seat-swivel design.

The swivel is comprised of a series of spacers, plates, and rings made of a particular type of aluminum. (Def.’s Summ. J. Mot. Br. Ex. 1 at 2.) The swivel is unique because, according to Brown, it incorporates the structure of the seat pan and seat-tracking structure. (Brown Dep. at 106-10.) The swivel also includes a locking mechanism that is similar to the rotor and caliper braking system in a car. This results in reducing stress loads, increased stability, sturdiness, and less vibration. (Id.)

(3) Seat-tracking design.

The seat-tracking mechanism is a “three interlocking box frame structure.” (Pis.’ Summ. J. Resp. Ex. 5 at 10; Brown Dep. at 116.) The structure has a specific geometry and is combined with the seat pan. (Id.) It allows the chair to move fore and aft as well as right and left. (Id.) Brown testified that the structure has several advantages, including reducing the number of parts and fasteners, improved load-bearing properties, decreased production costs, and decreased weights. (Brown Dep. at 116,120-21, 128-29.)

(4) Seat-pan design.

The design is webbed netting that laces through a spring-arm structure. (Brown Dep. at 140-50.) The seat-pan has a specific geometry, a lift mechanism, and an adjuster so that its height may be adjusted to achieve the range of movements demanded by Gulfstream. (Id.) The structure allows a more comfortable seat with reduced weight. (Id.)

(5) Leg-rest design.

The leg rest has “the capability ... to be combined with the bottom cushion.... [T]he innovation is in the concealed hinge and the motion of that hinge which limits compression.... [T]he new hinge design has telescopic plates, allowing] it to move outward and up.” (Brown Dep. at 180.) The leg rest also has a kick plate that slides out from under the leg rest and then moves up and outward so that the kick plate forms a level surface with the leg-rest cushion.

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Bluebook (online)
680 F. Supp. 2d 830, 2010 WL 360419, 2010 U.S. Dist. LEXIS 4956, Counsel Stack Legal Research, https://law.counselstack.com/opinion/giasson-aerospace-science-inc-v-rco-engineering-inc-mied-2010.