Infinity Fluids Corp. v. General Dynamics Land Systems, Inc.

210 F. Supp. 3d 294, 2016 U.S. Dist. LEXIS 134613, 2016 WL 5660359
CourtDistrict Court, D. Massachusetts
DecidedSeptember 29, 2016
DocketCIVIL ACTION NO. 14-40089-TSH
StatusPublished
Cited by8 cases

This text of 210 F. Supp. 3d 294 (Infinity Fluids Corp. v. General Dynamics Land Systems, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Infinity Fluids Corp. v. General Dynamics Land Systems, Inc., 210 F. Supp. 3d 294, 2016 U.S. Dist. LEXIS 134613, 2016 WL 5660359 (D. Mass. 2016).

Opinion

MEMORANDUM OF DECISION

Hillman, District Judge.

Background

Plaintiff, Infinity Fluids Corp., (“Plaintiff’ or “Infinity”) has filed claims against Defendant, General Dynamics Land Systems, Inc. (“Defendant” or “GDLS”) alleging claims for Breach of Contract (Count I), Unjust Enrichment (Count II), Misappropriation or Misuse of Trade Secret Information (Count III), Misappropriation of Confidential Information (Count IV), violations of the Massachusetts Consumer Protection Act, Mass.Gen.L. ch. 93A (“Chapter 93A”) (Count V), and Negligent Misrepresentation in violation of Chapter 93A (Count VI), Negligent Misrepresentation (Count VII), Fraudulent Misrepresentation in violation of Chapter 93A (Count VIII), and Fraud and Deceit (Count IX), This Memorandum of Decision addresses Defendant’s Motion For Summary Judgment (Docket No. 118). For the reasons set forth below, that motion is granted, in part and denied, in part.

Facts

GDLS is a defense contractor that designs and manufactures various types of armored combat vehicles for the United States Military. In the late 1990’s, GDLS contracted with the United States Marines (“Marines”) to develop an armored amphibious tank capable of being launched from a ship at sea, eventually named the Expeditionary Fighting Vehicle (“EFV”). In connection with development of the EFV, in 2008 GDLS was awarded a $700 million cost-plus-incentive fee contract with the Marines, which scope of work included continuation of system development and demonstration for the EFV, as well as the manufacture of seven fully-equipped prototype vehicles for the Marines for testing (“EVF Program”). GDLS encountered difficulty with the EFV’s ability to start in cold weather conditions. In April 2008, GDLS performed a trade study to resolve the cold start functionality issue. The study concluded that an electric heater would be the best option to resolve the cold start issue.

In 2008, GDLS solicited vendors for component parts that could be incorporated into the final design of the EFV. Infinity was one such vendor. Infinity claimed to be able to research, design and sell to GDLS an electric heater, that could assist in warming the engine’s coolant fluid prior to starting the engine in cold temperatures. On May 8, 2008,' GDLS and Infinity signed a Proprietary Data Agreement (“PDA”) to govern their exchange of proprietary information in connection with development of the EFV. The PDA states that it is intended to allow the parties to exchange proprietary information in contemplation of a business arrangement between them.

The PDA expressly states that the parties:

[298]*298intend to exchange information to support [GDLS] on the Expeditionary Fighting Vehicle (‘EFV’) and the MK46 Weapon Station ..., and wish to protect the confidentiality of certain Proprietary Information (as herein defined) disclosed in furtherance thereof.
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1 The term Proprietary Information includes all information, in whatever form or medium previously provided or provided in connection this Agreement which is identified as proprietary by the disclosing party as follows: (i) written documents and permanent records are to be marked with a restrictive legend of the disclosing party such as “proprietary”, “confidential” or the like and (ii) oral or visual information shall be identified as proprietary at the time of disclosure and so confirmed in writing within thirty (30) days of the presentation, such writing to contain a restrictive legend and a summary of the Proprietary Information delivered at the oral or visual presentation.
Notwithstanding the foregoing, this Agreement does not restrict disclosure or use of any information which would otherwise be considered “Proprietary Information” if the receiving party can demonstrate: (a) the information is published or generally known by the public (other than as a result of the breach of this Agreement); (b) the information was known by the receiving party at the time of disclosure as evidenced by competent ■proof; (c) the information has become lawfully available to the receiving party from a third party without restriction on disclosure; (d) the disclosing party approved in writing the public release by the receiving party; (e) the information was developed or discovered by the receiving party without access to or use of any Proprietary Information provided by the disclosing party; (f) the protection period has expired; or (g) the information was required to be released pursuant to applicable law, governmental regulation, legal order, notice, subpoena, investigative demand or similar directive provided that the receiving party first, to the extent permitted by law gives the disclosing party sufficient notice to provide it with a reasonable opportunity to seek injunctive or other similar equitable relief to prevent disclosure or to obtain a protective order to govern such disclosure.
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3. Each party agrees: (i) to use the other’s Proprietary Information solely for purposes of the [EVF] Program; (ii) not to disclose or reveal to any third party without the disclosing party’s prior written consent, any portion of the disclosing party’s Proprietary Information or any notes, summaries, or other information derived from the Proprietary Information; (iii) to disclose Proprietary Information of the disclosing party or portions thereof only to those employees, contract employees, or other agents or representatives of the receiving party who need to know such information in confidence under terms and conditions at least as restrictive as the terms and condition of this Agreement and; and (iv) not to use any portion of the disclosing party’s Proprietary Information for personal gain or to ad-[299]*299vanee ,or support the reviewing party’s other business ventures or the business ventures of others

The PDA explicitly permits the use of Proprietary Information (as defined therein) by the parties in connection with the EVF Program. Infinity’s President, Robert Evans (“Evans”) signed the PDA on behalf of Infinity; he read and understood it at the time he signed it. Evans understood that GDLS was engaged in developing the EFV for the Marines, and that the PDA was entered in order to govern the parties’ exchange of information related to the EVF Program. It was also Evans’ understanding that the confidential information which Infinity would be providing to GDLS wasn’t going “to [be] share[d] with anyone else beyond the project” and that Infinity’s Proprietary Information could not be disclosed to third parties without its consent. Infinity did not provide any confidential business information or trade secrets to GDLS prior to entering the PDA. After entering the PDA, Infinity labeled confidential information provided to GDLS “proprietary” and sent emails indicating that the technology and or information included therewith contained Proprietary Information.

Infinity was considered to have a viable, preferred solution because its heater could reside within the EFV. The product proposed by Infinity was a pre-existing marketable product known as the CENTAX Heater, which Infinity planned to redesign to meet the needs of the EVF Program. Infinity was going to have to make substantial changes to customize the CEN-TAX design in order to meet GDLS’s needs.

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210 F. Supp. 3d 294, 2016 U.S. Dist. LEXIS 134613, 2016 WL 5660359, Counsel Stack Legal Research, https://law.counselstack.com/opinion/infinity-fluids-corp-v-general-dynamics-land-systems-inc-mad-2016.