Incat Crowther America, L.L.C. v. Birdon America, Inc.

District Court, E.D. Louisiana·Decided August 20, 2025·No. 2:24-cv-01061·Unknown

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA

INCAT CROWTHER AMERICA, L.L.C. * CIVIL ACTION NO. 24-1061 * * SECTION: “T”(1) VERSUS * * JUDGE GREG G. GUIDRY BIRDON AMERICA, INC. * * MAGISTRATE JUDGE * JANIS VAN MEERVELD * *********************************** * ORDER AND REASONS

This is a trade secret misappropriation case concerning certain vessel designs. Before the Court is defendant Birdon America, Inc.’s Motion to Compel Incat Crowther America L.L.C. to supplement its responses to Interrogatories 8 and 9, which seek a description of (1) the portions of Incat’s trade secret documents that were contributed by others and (2) Incat’s alleged “skill, proprietary method, or approach” and any distinction between that and the common knowledge in the shipbuilding field as it relates to the alleged trade secrets. (Rec. Doc. 82). Finding Incat’s responses to these interrogatories sufficient, the Motion to Compel is DENIED. Background In 2021, Incat and Birdon began discussing a joint endeavor to pursue a U.S. Coast Guard contract for the Waterways Commerce Cutters project (“WCC Project”), which was expected to result in the purchase of up to 30 new vessels. Birdon would serve as the general contractor, and Incat would contribute its design services. Pursuant to the Teaming Agreement between the parties, any intellectual property rights developed solely by one party would belong exclusively to that party. Incat contends it solely developed intellectual property for the WCC project including “vessel designs, principal hull dimensions and shape definition, vessel subdivision, deck and space arrangements, exterior styling, 3D renderings, technical bid specifications, engineering solutions, verified design processes using proprietary ABS spreadsheets, structural calculations, global analysis, hull resistance calculations, hull form and appendage design reports, structural design reports, propulsion system reports and other proprietary information and documents.” (Rec. Doc. 34, at 5).

In October 2022, the Coast Guard awarded the project to Birdon, who was tasked with delivering up to 16 river buoy tenders and 11 inland construction tenders. The parties began negotiating an agreement to formalize Incat’s subcontract role, consistent with the Teaming Agreement. Based on the parties’ longstanding relationship, Incat began performing subcontract services immediately. Birdon then proposed acquiring a majority stake in Incat to obtain unlimited use of Incat’s intellectual property. When this latter proposal fell through, Incat contends that Birdon ceased good-faith negotiations regarding the subcontract for the WCC project. Incat alleges that by December 2023, it had, at Birdon’s request, completed approximately 8,000 additional engineering man-hours of subcontract services for the WCC project, including developing more detailed and refined vessel plans, structural calculations, and system integrations.

Yet, Incat claims, Birdon has failed to pay Incat the amounts owed. Incat alleges that it offered to license its intellectual property to Birdon for a commercially reasonable fee so that Birdon could complete the WCC project. Birdon ignored this offer. Incat contends that without a subcontract or a license, Birdon has no authority to use any of Incat’s intellectual property. Yet as recently as March 25, 2024, the Coast Guard continues to represent that Incat’s designs are being used on the WCC project. In briefing on the present motion, Birdon asserts that, in fact, it began construction of the first vessel in May 2025 and anticipates delivery in August 2026. At oral argument on the present motion, it explained that the designs submitted with the proposal have undergone modifications. According to Birdon, the parties’ negotiations broke down because Incat refused to agree to certain terms that were specified in the Teaming Agreement and were required by the Coast Guard. Birdon also contends that Incat’s work required significant corrections and input by Birdon’s design engineers. Birdon reported at oral argument that it has paid Incat about $1.5 million of the $2.5 million of the fee contemplated, even though it estimates Incat only completed

30% of the design work. Incat filed suit against Birdon on August 26, 2024, asserting causes of action for trade secret misappropriation, unfair trade practices, breach of contract, conversion, open account, and detrimental reliance. In November 2024, the undersigned granted Birdon’s first Motion to Compel and ordered Incat to supplement its Trade Secrets Identification Statement to identify “the contents or portions of the documents it has cited with language sufficient to allow Birdon and the Court to compare the trade secret to information that is generally known or readily ascertainable and to understand what information is claimed to be the trade secret.” Rec. Doc. 55, at 1. Incat’s original Trade

Secrets Identification Statement had merely listed documents. The Court required that: If Incat contends that the entirety of each document (i.e. the compilation of information contained therein) is a trade secret but not more than that, it must say so explicitly in the verified statement. If each document also contains separate trade secrets (e.g., certain design elements, combinations of elements, or methods of calculation) that Incat contends are themselves also protected, Incat must separately identify them with particularity.

Id. at 6-7. However, the Court rejected Birdon’s proposal “that Incat go through its cited documents and ‘separate out Incat’s contributions from the contributions of the USCG,’” finding that such identifications would only be appropriate if “Incat contends that specific portions of the cited documents (e.g., certain design elements) constitute trade secrets on their own.” Id. at 7. Thereafter, Incat revised its Trade Secret Identification Statement as a Verified Supplemental Trade Secrets Disclosure (“Supplemental Disclosure”). It identified the entirety of each cited document (the “Design Deliverables”) as the trade secrets, explaining that its “trade secrets are the functional design deliverables . . . created through its proprietary process.” Rec. Doc. 66, at 1. The Design Deliverables include (based on their Titles) certain reports, drawings,

analyses, models, graphs, plans, and calculations. Incat’s Statement further explains that: Incat utilized its proprietary process to develop the functional design deliverables. Incat’s design process optimizes technical requirements to arrive at a design solution by deploying unique engineering tools, checklists, databases populated with prior data, and validation procedures, all of which were created by Incat and were not shared with Birdon or the USCG. The deliverables listed in Exhibit A are the direct and unique outputs of Incat’s proprietary process, including vessel designs, principal hull dimensions and shape definition, vessel subdivision, deck and space arrangements, exterior styling, 3D renderings, technical bid specification compliance, engineering solutions, verified design processes using proprietary ABS spreadsheets, structural calculations, global analysis, hull resistance calculations, hull form and appendage design reports, structural design reports, and propulsion system reports. While some USCG specifications are necessarily included within these documents, the entirety of each deliverable constitutes Incat’s original work product. That is because Incat analyzed, arranged, and integrated the USCG specifications into its proprietary design process to generate a comprehensive, constructible vessel design. This integration transforms the raw specifications into an optimized, functional design that did not exist before Incat’s work and were generated based on Incat’s unique skillset and utilization of its own proprietary methodology.

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Incat Crowther America, L.L.C. v. Birdon America, Inc., (E.D. La. 2025).

Incat Crowther America, L.L.C. v. Birdon America, Inc. (Incat Crowther America, L.L.C. v. Birdon America, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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