ImageKeeper LLC v. Wright National Flood Insurance Services LLC

District Court, D. Nevada·Decided September 29, 2021·No. 2:20-cv-01470·Unknown

Opinion

IMAGEKEEPER LLC, ) ) Plaintiff, ) Case No.: 2:20-cv-01470-GMN-VCF vs. ) ) ORDER WRIGHT NATIONAL FLOOD INSURANCE ) SERVICES LLC and EVOKE ) TECHNOLOGIES PRIVATE LIMITED, ) ) Defendants. ) ) Pending before the Court is the Motion to Dismiss the Complaint (“First MTD”), (ECF No. 59), filed by Defendant Wright National Flood Insurance Services, LLC (“Wright National”).1 Plaintiff ImageKeeper LLC (“Plaintiff”) did not file a Response. Also pending before the Court is the Motion to Dismiss the Amended Complaint (“Second MTD”), (ECF No. 75), filed by Wright National. Plaintiff filed a Response, (ECF No. 78), to which Wright National filed a Reply, (ECF No. 83). For the reasons discussed below, the Court DENIES as moot Wright National’s First Motion to Dismiss and DENIES Wright National’s Second Motion to Dismiss. This case arises from Defendants’ purported misappropriation and use of Plaintiff’s trade secrets and confidential information. (See Am. Verified Compl., ECF No. 67). Plaintiff ImageKeeper’s technology enables businesses to: (1) securely capture images, audio, and video via personal mobile devices; (2) tag such files upon capture with ancillary data such as date, 1 In light of Plaintiff’s subsequent Amended Complaint, the Court denies without prejudice as moot Wright National’s First Motion to Dismiss, (ECF No. 59). See Ramirez v. County of San Bernardino, 806 F.3d 1002, 1008 (9th Cir. 2015). GPS location and satellite mapping; (3) automatically store and share captured files on Plaintiff’s Secured Cloud Storage; and (4) track and verify transmissions of and/or alterations to stored captured files. (Id. ¶ 10). Using this technology, Plaintiff developed the Flood Claim Service System (the “ImageKeeper System”) as a software solution for documenting and processing flood insurance claims. (Id. ¶ 11). Plaintiff provides software to quickly track, prepare, and process flood insurance claims through its mobile applications. (See Speasl Decl. ¶¶ 4, 6, 12, ECF No. 6). The ImageKeeper System comprises a secure portal (“Secure Portal”) to the ImageKeeper Cloud and a mobile adjuster application (“Adjuster Application”). (Id.). The Secure Portal is only accessible from the web with unique and secure login credentials, only made available through Plaintiff to paying users. (Id. ¶ 5). The Adjuster Application is downloadable to an iPhone or similar mobile device from the Secure Portal. (Id.). The Adjuster Application likewise requires secure credentials to open and use the application. (Id.). Wright National has been a customer of the ImageKeeper System since 2016 and is Plaintiff’s largest customer. (Id. ¶ 9). Wright National uses the ImageKeeper System to handle flood insurance claims backed by the Federal Emergency Management Agency (FEMA). (Id. ¶ 11). In October 2019, following disputes over unpaid invoices, Plaintiff sent its final demand for Wright National to pay its invoices and enter a new Software and Services Agreement

(“SSA”). (Id. ¶ 16). Wright National agreed and the parties entered into a SSA, effective October 31, 2019. (Id.); (SSA, Ex. 2 to Speasl Decl., ECF No. 8). Pursuant to the terms of the SSA, “Confidential Information,” as applied to Plaintiff, is defined to mean “the proprietary aspects of the Service.” (SSA § 7.2). In turn, “Service” is defined to mean “a collective reference to the ImageKeeper Software and all related activities in connection with the provisioning and delivery of the services described in [the SSA].” (Id. § 5.1). “Confidential Information” is defined as “any other information that the disclosing party labels in writing as ‘confidential’ or which, under the circumstances of the disclosure, should be reasonably considered confidential by Recipient.” (Id. § 7.2). The SSA also imposes confidentiality and non-disclosure obligations. For example, it forbids copying of Confidential Information or disclosure to third parties: 7.1 Non-Disclosure. The party receiving Confidential Information of the other (the “Recipient”) shall protect the confidentiality of the Confidential Information of the other party (the “Discloser”) . . . Recipient shall hold the Confidential Information of Discloser in trust and confidence and shall not copy Discloser’s Confidential Information or disclose such information to any third parties . . . .

(SSA § 7.1) (emphasis added). Pursuant to the SSA, Wright National also agreed that “all intellectual property rights (patents, trade secrets, copyrights, trademarks and similar rights)” pertaining to the Service “remain the sole property of [] ImageKeeper.” (Id. §§ 5.1, 13.7). Further, the SSA expressly restricts Wright National’s access as a customer and the access of its end users. Section 6.1 allows Wright National access “for sole purposes of operating the Service in its intended manner as a flood claim processing, archival and retrieval system and for no other purpose.” (Id. § 6.1). “End User[s]” are agents of Wright National or third parties that are granted access to the Service by Wright National. (See id. § 6.2). Under the SSA, each End User must “execute a ‘click through’ [End User License Agreement]/Terms & Conditions” before the End User is provided access to the Secure Portal or Adjuster Application. (Id.). In addition, each End User is issued a “unique user name and password by [Plaintiff] ImageKeeper.” (Id. § 6.3). Under the SSA, Wright National further agreed “that no user name or password will be utilized at any time by any person other than the End User to whom such user name or password was originally assigned.” (Id.) (emphasis added). In July 2020, Plaintiff discovered Wright National’s mobile “Claims Application for Adjusters” (the “Wright Application”) on the Apple Store. (Speasl Decl. ¶ 35). Wright National’s application looked and functioned like ImageKeeper’s Adjuster Application. (Id. ¶¶ 35, 36). Plaintiff then discovered that, in late-December 2019, Wright National had shared unique administrator login credentials registered to its Chief Information Officer (CIO), Tim Love, with employees from Evoke Technologies, a software developer, in Hyderabad, India. (Am. Verified Compl. ¶¶ 48–49). Plaintiff believes that, around the same time Wright National entered into the SSA with Plaintiff, Wright National hired Evoke Technologies to “implement and develop Wright Flood’s new mobile application.” (Id. ¶ 44); (see also Decl. of Tim Love, ECF No. 30). Plaintiff alleges that, during this time, Evoke Technologies’ employees based in Hyderabad, India developed a similar application to the Wright Application and, in the process of development, reviewed Plaintiff’s proprietary designs, documents and even uploaded their progress onto ImageKeeper’s cloud system as revealed through Plaintiff’s internal “audit trail.” (Id. ¶ 51). Plaintiff thereafter filed suit on August 7, 2020, alleging violations of the Defend Trade Secrets Act, 18 U.S.C. § 1836 et seq., and Nevada’s codification of the Uniform Trade Secrets, NRS Chapter 600A, as well as other state and federal claims. (Verified Compl., ECF No. 1). In addition to filing its Complaint, Plaintiff also filed an Emergency Motion for Temporary Restraining Order, which the Court granted and extended by granting a Preliminary Injunction after a hearing. (Pl.’s Mot. TRO at 23, ECF No. 2); (Min. Proceedings, ECF No. 55). Under

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ImageKeeper LLC v. Wright National Flood Insurance Services LLC, (D. Nev. 2021).

ImageKeeper LLC v. Wright National Flood Insurance Services LLC (ImageKeeper LLC v. Wright National Flood Insurance Services LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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