Medike International Corp. v. Giller

CourtDistrict Court, S.D. New York
DecidedJanuary 12, 2024
Docket1:23-cv-08939
StatusUnknown

This text of Medike International Corp. v. Giller (Medike International Corp. v. Giller) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Medike International Corp. v. Giller, (S.D.N.Y. 2024).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK

MEDIKE INTERNATIONAL CORP., et al., Plaintiffs, 23-CV-8939 (JPO)

-v- OPINION AND ORDER

BRYAN GILLER, et al., Defendants.

J. PAUL OETKEN, District Judge: Plaintiffs Medike International Corp. (“Medike”) and Medike, LLC (collectively, “Medike”) brought this action against defendants Bryan Giller, Kimberly Barnes, KT Deri Sanayi Ticaret Anonim Sirketi (“KY Turkey”), KT Trade, LLC (“KT USA”), KT Trims and Accessories GmbH (“KT Germany”), JOHN DOES 1–20, and ABC ENTITIES 1–10 (collectively, “Defendants”), asserting claims for misappropriation of trade secrets pursuant to the Defend Trade Secrets Act of 2016 (“DTSA”), 18 U.S.C. § 1836(b)(1), New York common law, and the Georgia Trade Secrets Act of 1990 (“GTSA”), Ga. Code Ann. § 10-1-760 et seq., and for unfair competition, tortious interference with business relations, breach of contract, breach of the duty of loyalty, and conversion. Presently before the Court is Medike’s application for a preliminary injunction to enjoin Defendants from the disclosure of Medike’s trade secrets and the solicitation of Medike’s customers. I. Background A. Factual Background Medike International Corp. does business in the United States through its subsidiary, Medike, LLC. (ECF No. 1 (“Verified Compl.”) ¶ 5.) Medike services clients in the fashion and apparel industries by producing custom labels, trims, and other accessories using various substrates, including leather, faux leather, and paper. (Id. ¶ 14.) Defendant Bryan Giller was employed by Medike, LLC from May 2, 2005, until January 16, 2023, first as a salesperson, and later as the Manager and Vice President of Sales and Marketing. (Id ¶ 7.) Giller was based in New York. (Id. ¶ 33.) Defendant Kimberly Barnes was employed by Medike, LLC from

October 27, 2007, to February 8, 2023, as a customer service representative, in which she provided administrative support to Giller. (Id. ¶¶ 8, 46.) Barnes was based in Georgia (Id. ¶ 46.) Medike alleges that it has developed and maintained trade secrets including proprietary designs, materials, collections, customer lists, customer preferences, business data, suppliers, costing and pricing information. (Id. ¶¶ 25, 29.) During their employment with Medike, Giller and Barnes had access to Medike’s alleged trade secret information. (Id. ¶¶ 33-38, 46-51.) Both Giller and Barnes signed employment agreements with Medike that included non-disclosure provisions. (Id. ¶¶ 38-40, 46-51.) In or around October 2022, Giller received a call from an employee at KT Trims, who relayed that KT Trims was seeking a salesperson in the New York area with experience selling

labels to vendors in the denim industry. (ECF No. 19-1 (“Giller Decl.”) ¶ 23.) Giller resigned from Medike on or about January 13, 2023, and joined KT Trims as its Vice President of Sales and Marketing. (Id. ¶¶ 43-44.) Upon joining KT Trims, Giller contacted Barnes regarding the possibility of Barnes joining KT Trims and supporting Giller in his new position, and Barnes subsequently interviewed with KT Trims. (ECF No. 19-5 (“Barnes Decl.” ¶ 7.) Giller submits that he did not have authority to hire Barnes, but that he offered to connect her with the relevant decisionmakers at KT Trims. Barnes resigned from Medike on or about February 8, 2023 and also joined KT Trims. (Verified Compl. ¶ 53.) Upon Giller’s resignation, Medike demanded the return of Giller’s phone and company computer, reviewed his e-mails and phone records, and sent personnel to its New York sales office to review the inventory of items kept there. (Id. ¶ 61.) Upon receiving Giller’s phone and computer, Medike discovered that Giller had deleted all of the files stored on both devices. (Id.

¶ 62.) Giller avers that he deleted all of the information stored on both devices prior to returning them because, per Medike’s consent, Giller had been using both devices for personal use as well as business use, and the devices therefore contained his personal information, including “personal emails, photographs, financial records, bank statements, mortgage records, family contact information, and other personal information.” (Giller Decl. ¶ 31.) Medike was able to review the emails stored on its servers, as well as Giller’s certain phone logs from Giller’s mobile phone service provider. (Verified Comp. ¶ 62.) Medike found that on several occasions, Giller sent emails to his personal email address containing Medike’s alleged trade secrets, and that Giller had several phone calls with KT Trims. (Id. ¶¶ 63-65.) Giller states that he sent these documents to his personal email account for ease of access and use in connection with his job at

Medike, and that he never transmitted ay of this information to KT Trims. (Giller Decl. ¶ 21). Medike also discovered that Giller had removed material swatch books and material collections from the New York sales office. (Verified Compl. ¶ 67.) Giller submits that he brought some of Medike’s sample swatches for a meeting with KT Trims “for the sole purpose” of ensuring that KT Trims was able to produce labels of the same quality as Medike because Giller did not want to change companies and offer customers an inferior product, which would “hurt [his] reputation.” (Giller Decl. ¶ 24.) Moreover, Giller contends that the swatches he showed to KT Trims “consisted of products already being sold in the market and at major department stores” and that these “swatches are made from materials supplied by third parties which are openly shown to customers and prospective customers, and they are not confidential.” (Id. ¶ 25.) Medike alleges that “KT Trims has been engaged in a global effort to poach several of Medike’s key employees in order to obtain Medike’s confidential, proprietary, and trade secret

information.” (Verified Compl. ¶¶ 72-100.) Most recently, Medike alleges, on October 3, 2023, Medike learned that, on September 21, 2023, Giller had approached another Medike employee— Medike General Manager Michael Ware—about joining KT Trims. (Id. ¶ 112.) Giller submits that he did reach out to Ware to see if Ware had an interest in managing a KT Trims plant in Pennsylvania should such an opportunity become available, but that he was not authorized to offer Ware a position. (Giller Decl. ¶ 42.) Medike also alleges that KT Trims has become the new supplier of one of Medike’s customers that Giller serviced during his employment with Medike. (Verified Compl. ¶¶ 106- 110.) Giller states that two customers he serviced while at Medike have since placed orders with him at KT Trims. (Giller Decl. ¶ 39.)

B. Procedural History On October 1, 2023, Medike commenced this action and simultaneously filed a proposed order to show cause seeking a temporary restraining order and a preliminary injunction. (See ECF Nos. 1, 5.) Medike requested an order preliminarily enjoining Defendants from (1) using, disclosing, or disseminating Medike’s confidential and proprietary information and trade secrets, (2) soliciting, contacting, or doing business with Medike’s former or potential customers, and (3) soliciting or contacting any of Medike’s employees. (See ECF No. 5.) The court held a telephone conference on October 16, 2023. The Court denied Medike’s application for a temporary restraining order, but set a schedule on its requested preliminary injunction. Defendants filed their opposition on October 30, 2023. (ECF No. 19.) Medike filed its reply on November 8, 2023. (ECF No. 22.) The Court held oral argument on November 9, 2023. II.

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