Grey Wall Software, LLC v. AeroSimple LLC

District Court, D. Connecticut·Decided July 28, 2025·No. 3:22-cv-00203·Unknown

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF CONNECTICUT GREY WALL SOFTWARE, : LLC, et al., : : Plaintiffs, : : v. : CASE NO. 3:22-CV-00203 (RAR) : AEROSIMPLE LLC, et al., : : Defendants. :

RULING ON PENDING DISCOVERY REQUESTS Before the Court is a motion by the Defendants to have their expert Mr. Jeffrey Price (“Mr. Price”) inspect the user interface of Plaintiffs’ product (“the Veoci system”). Plaintiffs object to the motion and argue that the Veoci system is highly confidential. (Dkt. #127 at 2.) The Court held oral argument on July 2, 2025. For the reasons below, the Court takes Defendant’s motion under advisement. In the meantime, the Court grants Plaintiffs leave to depose Mr. Price for the limited purpose of determining whether and to what extent Mr. Price’s role as a consultant in the airline industry would potentially jeopardize Plaintiffs’ trade secrets, if the Court allows Mr. Price to inspect the Veoci system. I. Factual Background Plaintiff Grey Wall Software, LLC (“Grey Wall”) is the sole owner of Plaintiff Veoci Inc. (“Veoci”), which “is a software development company and service provider specializing in digitizing comprehensive aviation requirements and protocols for airports.” (Dkt. #1 ⁋ 1). According to the Complaint, Defendant Rao was previously employed by Plaintiffs from 2012 to 2018 and had great knowledge of Plaintiffs’ business and products. See id. ⁋⁋ 6-12. Shortly after Mr. Rao’s departure, however, Plaintiffs began noticing that a company named AeroSimple LLC (“AeroSimple”) began winning contracts for which Plaintiffs had competed. Upon realizing that Mr. Rao was AeroSimple’s founder, Plaintiffs allegedly conducted an internal investigation and discovered that Mr. Rao had purchased the AeroSimple domain prior to leaving Plaintiffs’ employment and likely had been eliciting similar business during that period. Id. ⁋ 48. Accordingly, Plaintiffs commenced this lawsuit.

II. Procedural Background In September of 2024, Plaintiffs moved for a protective order, arguing, inter alia, that Defendants’ expert Mr. Price should not have access to Plaintiffs’ Highly Confidential information. (Dkt. #99 at 16). In support of their motion, Plaintiffs claimed that Mr. Price is an industry consultant in the same market that is at issue in this case. Id. Plaintiffs asserted that Mr. Price provides services to airports as well as other product developers1 selling to airports. Id. Plaintiffs’ motion for a protective order principally relied on Carrum Tech LLC v. FCA U.S. LLC, 2024 WL 464025 (E.D. Mich. Jan. 3, 2024), to argue that Mr. Price should be disqualified from reviewing the Veoci system and any other Highly Confidential information.

Defendants objected to Plaintiffs’ motion for a protective order, countering that Mr. Price should be allowed to view the Veoci system. (Dkt. #101 at 12). As their objection made clear, Defendants wanted Mr. Price “to view and use the version of the Veoci system as it existed when Mr. Rao was last employed[.]” Id. To that end, Defendants asserted that “[t]here is no authority to allow an adversary to block the engagement by an adverse party of consultants and experts prior to their actual disclosure[.]” Id. However, in making this assertion, Defendants made no

1 Defendants have not yet clarified whether Mr. Price provides consulting services to other product developers in the airline industry. See Dkt. #101 at 13 (“[T]here is nothing in his resume to indicate [Mr. Price] provides consulting services to ‘product developers selling to airport facilities.’ Yet even were Mr. Price to provide some kind of consulting to ‘product developers selling to airport facilities,’ not only will he not have access to Plaintiffs’ source code, but he will be subject to the restrictions and sanctions in the Protective Order that Plaintiffs insist be entered.”) (emphasis added) (internal citations omitted). attempt to discuss or distinguish the very case that Plaintiffs relied on to argue that Mr. Price could and should be precluded from inspecting the Veoci system. Therefore, in their reply brief, Plaintiffs argued that “[i]t is Defendants’ position with respect to Mr. Price… that is ‘unprecedented,’ not Plaintiffs’. Defendants do no discuss or distinguish Carrum Tech LLC v.

FCA U.S. LLC, where the court granted a protective order prohibiting disclosure of trade secrets to a proposed expert.” (Dkt. #102 at 10) (internal citations omitted). On March 20, 2025, the Court granted in part and denied in part Plaintiffs’ motion for a protective order. (Dkt. #108-1). Importantly, based on concerns that Plaintiffs raised in their motion, the Court found “it inappropriate for Defendants to provide Mr. Price any of Plaintiffs’ material that has been designated as ‘Highly Confidential’ at this juncture.” Id. at 8.

Thereafter, on March 27, 2025, Defendants timely moved for reconsideration of the Court’s ruling. (Dkt. #113). Yet, Defendants’ motion for reconsideration addressed only the portion of the Court’s ruling that related to Mr. Rao’s potential review of Highly Confidential materials. Notably, the motion for reconsideration did not address the Court’s ruling denying Mr. Price access to Plaintiffs’ Highly Confidential Information, which included the Veoci system. See generally id.

On April 25, 2025, the parties submitted through Special Master James T. Shearin (“Special Master Shearin”) a status report, which noted that Defendants were seeking permission to allow Mr. Price to view Plaintiffs’ system in the same manner as a customer or user of the system.2 (Dkt. #124 at 2). Given this dispute, Special Master Shearin suggested that the parties

2 The status report conveyed that, like before, while Plaintiffs were arguing that the Veoci system was not only highly confidential but also trade secret protected, Defendants were continuing to argue that the Veoci system is neither. (Dkt. #124 at 2-3). file briefs focused “solely on whether or not the relevant documents and access [Plaintiffs’] system as would a user are entitled to Highly Confidential level protection under the Protective Order.” Id. at 3 (emphasis added).

In response to Special Master Shearin’s suggestion, the Court allowed briefing on this issue. (Dkt. #126). The parties then timely briefed their positions. (Dkt. #127 and 131). Defendants’ brief contained an affidavit from Mr. Price (“Price Affidavit”). The Price Affidavit responded to some of the concerns that Plaintiffs raised about Mr. Price in their motion for a protective order dated September 10, 2024. (Dkt. #131-1.) The Court held oral argument on the matter to fully ascertain the parties’ positions and rationale behind their submissions.

The Court construes Defendants’ general position as a motion for reconsideration, which the Court addresses below. III. Legal Standard: Motion for Reconsideration “The major grounds justifying reconsideration are an intervening change of controlling law, the availability of new evidence, or the need to correct a clear error or prevent manifest

injustice.” Virgin Atl. Airways, Ltd. v. Nat’l Mediation Bd., 956 F.2d 1245, 1255 (2d Cir. 1992) (citations and internal quotations omitted). As such, the standard for granting a motion for reconsideration is “strict, and reconsideration will generally be denied unless the moving party can point to controlling decisions or data that the court overlooked – matters, in other words, that might reasonably be expected to alter the conclusion reached by the court.” Shrader v. CSX Transp., Inc., 70 F.3d 255, 257 (2d Cir. 1995); accord Commerzbank AG v. U.S. Bank, N.A., 100 F.4th 362, 377 (2d Cir. 2024).

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