Interbake Foods, L.L.C. v. Tomasiello

461 F. Supp. 2d 943, 2006 U.S. Dist. LEXIS 82774, 2006 WL 3302678
CourtDistrict Court, N.D. Iowa
DecidedNovember 13, 2006
DocketC06-4089-MWB
StatusPublished
Cited by24 cases

This text of 461 F. Supp. 2d 943 (Interbake Foods, L.L.C. v. Tomasiello) is published on Counsel Stack Legal Research, covering District Court, N.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Interbake Foods, L.L.C. v. Tomasiello, 461 F. Supp. 2d 943, 2006 U.S. Dist. LEXIS 82774, 2006 WL 3302678 (N.D. Iowa 2006).

Opinion

MEMORANDUM OPINION AND ORDER GRANTING IN PART AND DENYING IN PART THE PLAINTIFF’S MOTION FOR PRELIMINARY INJUNCTION

BENNETT, Chief District Judge.

TABLE OF CONTENTS

I. INTRODUCTION..........................................................947

A. Procedural Background................................................947

B. Findings Of Fact......................................................949

1. The provisional nature of findings and conclusions...................949

2. The wafer makers and their products................................949

3. Larry Tomasiello’s employment with Interbake ......................951

4. Tomasiello’s employment with BoDeansWafer........................954

II. LEGAL ANALYSIS........................................................954

*947 A. Standards For Preliminary Injunction..................................954

B. Conflict of Laws.......................................................956

1. Iowa’s choice-of-law rules in tort cases ..............................956

2. Application of Iowa’s choice-of-law rules.............................958

C. Application Of The Standards..........................................960

1. Likelihood of success on the merits..................................960

a. The law governing trade secrets.................................961

b. The Iowa Uniform Trade Secrets Act............................962

c. Is the information in question “trade secrets”?...................966

d. Likelihood of a successful common-law claim ....................968

e. Is there a likelihood of disclosure by “improper means”?..........969

2. Irreparable harm..................................................975

3. Balance of harm...................................................976

4. The public interest.................................................978

D. The Requirements Of FedR.Civ.P. 65(c) & (d)...........................978

1. The scope of a preliminary injunction ...............................978

2. Fed.R.Civ.P. 65(c)’s security requirement............................979

III. CONCLUSION.........................................................:.. 980

Although the court had not imagined that ice cream sandwich wafers could spawn rivalries more intense than that between vanilla and chocolate, the court has discovered in this “trade secrets” case that rival makers of the “sandwich” wafers of ice cream sandwiches defend their alleged proprietary information with as much zeal as any other entrepreneur seeking to secure an advantage in an increasingly sophisticated and competitive commercial market. Presently before the court is the application of one maker of sandwich wafers for a preliminary injunction seeking to protect its “trade secrets” in wafer manufacturing by enjoining a former employee from disclosing those secrets to, or working for, an upstart wafer manufacturer competitor and the competitor’s misappropriation of any of those secrets. Choice of Iowa or Virginia law and a balance of equities will determine what are protecta-ble secrets in this case, whether those secrets should be protected by a preliminary injunction, and what is the proper scope of such an injunction, should the court find that one must issue. Obviously, the decisions that are required to be made by the court in this case are of much greater import and undoubtedly will have more far-reaching ramifications than deciding between vanilla or chocolate flavored ice cream, and therefore, are decisions that the court does not take lightheartedly.

I. INTRODUCTION
A. Procedural Background

Plaintiff, Interbake Foods, L.L.C., (hereinafter “Interbake”) filed its complaint in this matter on October 24, 2006, against defendant Larry Tomasiello, the former production manager of Interbake’s premier wafer manufacturing facility in Front Royal, Virginia, and defendants Bo-Deans Baking Company, L.L.C., BoDeans Baking Holding Company, L.L.C., and Bo-Deans Wafer Company, L.L.C. (hereinafter collectively referred to as “BoDe-ans”) — Tomasiello’s current employer (Doc. No. 3). Interbake is a Delaware corporation, with its principal place of business in Front Royal, Virginia. Toma-siello is a citizen of the State of Iowa. He is currently employed at BoDeans and is responsible for overseeing and managing all aspects of the company’s wafer production. Defendant BoDeans Baking Holding Company, L.L.C. (hereinafter “BoDeans Baking”) is an Iowa corporation with its principal place of business in Le Mars, Iowa. BoDeans Wafer Company, L.L.C. *948 (hereinafter “BoDeans Wafer”) and BoDe-ans Cone Company, L.L.C., (hereinafter “BoDeans Cone”) are wholly-owned subsidiaries of BoDeans Baking, and are also Iowa corporations with their principal places of business in Le Mars, Iowa.

Interbake’s complaint in this matter is in seven counts, each alleging misconduct under Iowa law following Tomasiello’s termination of his employment with Interbake and subsequent employment with BoDe-ans, which Interbake asserts is trying to become one of its direct competitors by entering into and gaining a significant market share of the wafer manufacturing and distributing industry. Interbake’s claims center upon alleged disclosure by Tomasiello of Interbake’s trade secrets and BoDeans’s alleged misappropriation of Interbake’s trade secrets. 1

The matter immediately pending before the court is Interbake’s motion for a preliminary injunction, filed the same day as Interbake’s complaint, seeking to enjoin the defendants’ actual or threatened misappropriation of trade secrets. In its motion for a preliminary injunction, Interbake also requested an expedited evidentiary hearing. On October 31, 2006, the court granted the request for an expedited hearing, and scheduled a hearing on the Motion for a Preliminary Injunction for November 8, 2006, in Sioux City, Iowa. Thereafter, on November 6, 2006, the defendants’ filed their joint resistance to Interbake’s Motion for Preliminary Injunction.

This matter proceeded to hearing on Wednesday, November 8, 2006. At the hearing, plaintiff Interbake was represented by counsel Brenton D. Soderstrum of Brown, Winick, Graves, Gross, Basker-ville, & Schoenebaum, P.L.C., in Des Moines, Iowa; and Rodney A. Satterwhite and Christopher M.

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Bluebook (online)
461 F. Supp. 2d 943, 2006 U.S. Dist. LEXIS 82774, 2006 WL 3302678, Counsel Stack Legal Research, https://law.counselstack.com/opinion/interbake-foods-llc-v-tomasiello-iand-2006.