Japan Halon Co. v. Great Lakes Chemical Corp.

852 F. Supp. 673, 1993 U.S. Dist. LEXIS 19068, 1993 WL 660919
Procedural entryThis page is a short order in Japan Halon Co. v. Great Lakes Chemical Corp.. Read the opinion of the Court — 145 A.L.R. Fed. 749
District Court, N.D. Indiana·Decided December 9, 1993·No. No. 4:90cv37AS·Published

Opinion

MEMORANDUM AND ORDER

ALLEN SHARP, Chief Judge.

I. Procedural History

On February 23, 1990, the plaintiff, Japan Halón Co., Ltd. (“Japan Halón”), filed a complaint in the Central District of California on February 23, 1990, against the defendant Great Lakes Chemical Corp. (“Great Lakes”). The plaintiff alleges that Great Lakes has misappropriated, and continues to misappropriate," trade secrets from Japan Halón (Complaint at ¶ 12). Further, the plaintiff alleges that the defendant obtained the alleged trade secrets from Yuichi Iikubo, in violation of Iikubo’s confidentiality obligations to Japan Halón (Complaint at ¶ 12(a)). The defendant’s motion to transfer this ease to the Northern District of Indiana was granted on July 16, 1990. Yuichi Iikubo was added as a defendant on April 2, 1991. The defendants filed their motion for summary judgment on June 29,1993. The plaintiff filed its motion for summary judgment on June 30, 1993. This court heard oral argument on Japanese law in this case from all parties on August 26, 1993. This court has jurisdiction over this case pursuant to 28 U.S.C. § 1332(a)(2).

II. Facts

Japan Halón is a manufacturer of chemical products. Iikubo worked in executive capacities from Japan Halon’s inception in 1975 until June of 1986. Between March of 1981 and January, 1989, Japan Halón, Onoda Cement Co., Ltd (“Onoda”), and Great Lakes were parties to a licensing agreement. Un[674]*674der the terms of that agreement, Great Lakes obtained the licensing rights to manufacture two Japan Halón products, Halón 1211 and Halón 1301. Iikubo was in charge of the business dealings between Japan Halon and Great Lakes. Following his resignation from Japan Halón in 1986, Iikubo joined Great Lakes.

III. Standard of Review

Summary judgment is proper if the pleadings, depositions, answers to interrogatories and admissions on file, together with any affidavits, show that there exists no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law. Fed.R.Civ.P. 56; Russo v. Health, Welfare & Pension Fund, Local 705, 984 F.2d 762 (7th Cir.1993).

A thorough discussion of Rule 56 by the Supreme Court of the United States can be found in a trilogy of cases decided in 1986. See, Matsushita Electric Industrial Co. v. Zenith Radio Corp., 475 U.S. 574, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986); Celotex Corp. v. Catrett, 477 U.S. 317, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986)1; and Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). Celotex addressed the initial burdens of the parties under Rule 56, and Anderson addressed the standards under which the record is to be analyzed within the structure of Rule 56.

The initial burden is on the moving party to demonstrate, “with or without supporting affidavits,” the absence of a genuine issue of material fact and that judgment as a matter of law should be granted in the moving party’s favor. Celotex, 477 U.S. at 324, 106 S.Ct. at 2553 (quoting Fed.R.Civ.P. 56). A material question of fact is a question which will be outcome determinative of an issue in the case. The Supreme Court has instructed that the facts material in a specific case shall be determined by the substantive law controlling the given case or issue. Anderson, 477 U.S. at 248, 106 S.Ct. at 2510.

Once the moving party has met the initial burden, the opposing party must “go beyond the pleadings” and “designate ‘specific facts showing that there is a genuine [material] issue for trial.’ ” Id. The nonmoving party cannot rest on its pleadings, Hughes v. Joliet Correctional Center, 931 F.2d 425, 428 (7th Cir.1991), or upon conclusory allegations in affidavits. Cusson-Cobb v. O’Lessker, 953 F.2d 1079, 1081 (7th Cir.1992). “The days are gone, if they ever existed, when the nonmoving party could sit back and simply poke holes in the moving party’s summary judgment motion.” Fitzpatrick v. Catholic Bishop of Chicago, 916 F.2d 1254, 1256 (7th Cir.1990).

During its analysis, this court must construe the facts and draw all reasonable inferences in the light most favorable to the nonmoving party. Brennan v. Daley, 929 F.2d 346, 348 (7th Cir.1991). Furthermore, it is required to analyze summary judgment motions under the standard of proof relevant to the case or issue. Anderson, 477 U.S. at 252-255, 106 S.Ct. at 2512-2514.

The 1986 Supreme Court trilogy was recently re-examined in Eastman Kodak v. Image Technical Services, — U.S. -, 112 S.Ct. 2072, 119 L.Ed.2d 265 (1992), a case born in the context of antitrust law. The most that can be said for Kodak is that it did not tinker with Celotex and Anderson, and possibly involves an attempt to clarify Matsushita. This view is well supported by an in-depth academic analysis in Schwarzer, Hirsch, and Barraos, The Analysis and Decision of Summary Judgment Motions, 139 F.R.D. 441 (1992).

IV. Discussion

A day-long (very long day) evidentiary hearing was held in Lafayette, Indiana, on August 26, 1993, in regard to the court’s obligation to decide the content of relevant provisions of Japanese law at times relevant to this ease. Unfortunately, in that hearing there was much chaff and very little wheat to assist this court. The witnesses were only marginally helpful and some engaged in distracting tediousness and ego-driven obstinance. However, the massive record to date permits this court to decide now the content [675]*675of Japanese law relevant to this ease in time and subject matter.

There is little doubt that the post-World War II constitution of Japan contemplates an enlightened and regulated version of so-called free market economics, including the right to enter into private contracts with reference to private employment. To some extent, these areas of Japanese law reflect concerns for the protection of corporate business confidential information and the loyalty of directors and others in top management positions. There is little real dispute with regard to the obligation of directors and other top management personnel, to maintain the confidential information of the corporation during their employment tenure.

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Japan Halon Co. v. Great Lakes Chemical Corp., 852 F. Supp. 673, 1993 U.S. Dist. LEXIS 19068, 1993 WL 660919 (N.D. Ind. 1993).

852 F. Supp. 673 (Japan Halon Co. v. Great Lakes Chemical Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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