Greenpeace, Inc. v. The Dow Chemical Company

97 A.3d 1053, 2014 D.C. App. LEXIS 307, 2014 WL 4098926
CourtDistrict of Columbia Court of Appeals
DecidedAugust 21, 2014
Docket13-CV-685
StatusPublished
Cited by28 cases

This text of 97 A.3d 1053 (Greenpeace, Inc. v. The Dow Chemical Company) is published on Counsel Stack Legal Research, covering District of Columbia Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Greenpeace, Inc. v. The Dow Chemical Company, 97 A.3d 1053, 2014 D.C. App. LEXIS 307, 2014 WL 4098926 (D.C. 2014).

Opinion

BLACKBURNE-RIGSBY, Associate Judge:

This case involves alleged corporate espionage, and the issue of whether a corporation has a claim for trespass or conversion against another for rummaging through the corporation’s trash in search of “trade secrets” and other confidential information. Appellant Greenpeace, Inc. (“Greenpeace”) filed suit against appel-lees, 1 claiming that they conspired and engaged in various forms of unlawful corporate espionage with the intent to discover and undermine Greenpeace’s environmental campaigns. The trial court granted appellees’ motions to dismiss Greenpeace’s claims of trespass to common areas of the office buildings in which it was a tenant, invasion of privacy by intrusion of its private concerns, offices, and staff, and conversion of its confidential information. 2 On appeal, Greenpeace argues that the trial court erred in dismissing these claims because: (1) Greenpeace has a possessory interest in the common areas of the office buildings in which it was a tenant; (2) appellees improperly intruded on Greenpeace’s office and staff; and (3) the trial court erred in declining to recognize a claim of conversion of the intangible information contained in the documents taken by appellees from its trash. However Greenpeace’s factual allegations may be regarded, Greenpeace’s legal arguments cannot prevail as a matter of law, and therefore we affirm the dismissal. 3

I. Factual Background

Greenpeace is a nonprofit corporation headquartered in Washington, D.C. It *1057 campaigns to protect the environment and to prevent toxic pollution, global warming, nuclear hazards, and genetic engineering. The Dow Chemical Company (“Dow”) sells chemical, plastic, and agricultural products and services. It is the world’s largest producer of chlorine, which it uses to manufacture other products. Dioxin, a carcinogen, is a byproduct of manufacturing with chlorine. Dow is also a major producer of genetically modified organisms (“GMO”). Sasol North America, Inc. (“Sasol”), formerly CONDEA Vista Company, 4 is also a commodity and specialty chemicals producer. Between 1984 and 2001, Sasol operated a vinyl chloride manufacturing facility in Lake Charles, Louisiana. Both Dow and Sasol were the focus of Greenpeace’s environmental campaigns. Specifically, between 1995 and 1999, Greenpeace criticized Dow, published “numerous reports” on the dangers of dioxin, and campaigned against the GMO industry. Greenpeace also campaigned against Sasol and its vinyl chloride production in the Lake Charles region. Ketchum, Inc. (“Ketchum”) and Dezenhall Resources, Ltd. (“Dezenhall”) are both large public relations firms, which were hired by Dow and Sasol, respectively. Timothy Ward, Jay Arthur Bly, Michael Mika, and George Ferris (collectively, “individual appellees”), were high-level employees of the now-defunct private security firm Beckett Brown International (“BBI”). Greenpeace claims that most of the key executives and employees at BBI were formerly agents of the Secret Service and the Central Intelligence Agency.

In the instant action, Greenpeace alleges two distinct conspiracies committed by two groupings of appellees occurring roughly concurrently between 1998 and 2001. The first conspiracy involves Dow, Ketchum, and BBI. The complaint alleges that, between at least 1998 and 2001, Dow paid Ketchum to help it obtain confidential information from Greenpeace, and that Ket-chum, in turn, hired BBI to effectuate that purpose. The second conspiracy involves Sasol, Dezenhall, and BBI. The complaint similarly alleges that, at least between 1998 and 2000, Sasol paid Dezenhall to help it secure information from Greenpeace, and that Dezenhall engaged BBI for the job. BBI referred to its work for Sasol/Dezenhall as the “Lake Charles Project.” It is not alleged that Dow/Ketchum and Sasol/Dezenhall colluded together; rather, the two conspiracies are presented as distinct. However, the conspiracies were closely related and had substantial commonalities. In both instances, large corporations are alleged to have engaged BBI for the purpose of procuring confidential information from Greenpeace.

BBI (through the acts of the individual appellees) is alleged to have engaged in, essentially, three invasive methods of intelligence gathering from Greenpeace: (1) “D-lines,” which involved recovering documents from the dumpsters and recycling bins that Greenpeace used for its trash; (2) physically infiltrating and breaking into Greenpeace’s office, along with monitoring and surveilling individuals associated with Greenpeace; and (8) electronic surveillance by hacking into Greenpeace’s computers and wiretapping its telephones. For purposes of this appeal, only the “D- *1058 lines” and physical intrusion and surveillance tactics are relevant.

According to Greenpeace, “D-lines” is BBI terminology referring to the act of acquiring internal documents and records by searching through the dumpsters and recycling bins used by Greenpeace. Between 1998 and May 2000, Greenpeace’s office was located at 1436 U Street, Northwest, Washington, D.C. Greenpeace’s dumpster was located at ground level, abutting the building. Its recycling bins were located on an elevated loading dock sheltered in the back. Both the trash and recycling bins were on private property. In May 2000, Greenpeace moved its office to 702 H Street, Northwest. This time, the recycling and trash bins were both located inside the building in a locked ground floor room. Greenpeace alleges that, between September 1998 and October 2000, the individual appellees, or their agents, 5 conducted more than 100 D-lines at both Greenpeace’s U Street and H Street offices for Dow. Similarly, Greenpeace claims that, between July 13, 1998 and November 12, 1998, the individual ap-pellees, or their agents, conducted at least thirty-five D-lines for the Lake Charles Project on behalf of Sasol at the U Street office.

Greenpeace further alleges that BBI engaged in surveillance of specific individuals associated with Greenpeace and intruded into its offices. Specifically, it accuses BBI of breaking into its U Street office and stealing documents. Further, it claims that BBI engaged in surveillance of Greenpeace on behalf of Dow. And, on behalf of Sasol, BBI hired “research consultant” Mary Lou Sapone to surveil Greenpeace’s U Street office while pretending to be a prospective volunteer. Through BBI’s actions, Dow/Ketehum and Sasol/Devenhall gained voluminous amounts of confidential information, including: campaign planning and strategy documents, internal communications, legal communications, financial reports and information, and personal employee information. Greenpeace asserts that both Dow/Ketchum and Sasol/Devenhall were aware of BBI’s illegal methods, as evidenced by their substantial monetary payments to BBI, interactions and briefings with BBI, and attempts to limit or obfuscate their involvement with BBI.

Greenpeace claims it was ignorant of appellees’ actions when they occurred, and that it learned of the misconduct only years later in April 2008, through an investigative reporter for Mother Jones

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Bluebook (online)
97 A.3d 1053, 2014 D.C. App. LEXIS 307, 2014 WL 4098926, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greenpeace-inc-v-the-dow-chemical-company-dc-2014.