Micropower Group v. Ametek, Inc.

953 F. Supp. 2d 801, 2013 WL 3480378, 2013 U.S. Dist. LEXIS 94753
CourtDistrict Court, S.D. Ohio
DecidedJuly 8, 2013
DocketCase No. 3:12-cv-331
StatusPublished
Cited by4 cases

This text of 953 F. Supp. 2d 801 (Micropower Group v. Ametek, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Micropower Group v. Ametek, Inc., 953 F. Supp. 2d 801, 2013 WL 3480378, 2013 U.S. Dist. LEXIS 94753 (S.D. Ohio 2013).

Opinion

ENTRY AND ORDER GRANTING DEFENDANT AMETEK, INC’S MOTION TO DISMISS (Doc. # 7) AND DENYING DEFENDANT AMETEK, INC’S MOTION FOR SANCTIONS (Doc. # 10)

THOMAS M. ROSE, District Judge.

Pending before the Court is Defendant Ametek, Inc.’s (hereinafter “Defendant” or “Ametek”) Motion to Dismiss Amended Complaint (Doc. 7.) and Defendant’s Motion for Rule 11 Sanctions (Doc. 10.). In the Motion to Dismiss, Defendant asserts that Plaintiff Ecotec LTD., LLC’s (hereinafter “Ecotec”) claim should be dismissed as barred by res judicata and that Plaintiff Micropower Group’s (hereinafter “Micro-power”) claims should be dismissed for failure to state a claim pursuant to Fed. R.Civ.P. 12(b)(6) or, in the alternative, for improper venue pursuant to Fed.R.Civ.P. 12(b)(3). In the Motion for Rule 11 Sanctions, Defendant moves for sanctions asserting that Plaintiffs’ claims are frivolous, being legally and factually unfounded. Defendant also asserts that the recovery of attorney’s fees is appropriate under Ohio Rev.Code § 1333.64 because the Plaintiffs made a trade secret claim in bad faith.

This case is before the Court pursuant to 28 U.S.C. § 1332. Plaintiff Micropower brings eight claims against Defendant alleging that Defendant copied the design of Micropower’s charger (ECLIPSE I), misled Micropower in their business interactions, and interfered with Plaintiffs’ business relations: (1) Breach of the Duty of Good Faith; (2) Intentional Misrepresentation; (3) Negligent Misrepresentation; (4) Fraud; (5) Tortious Interference with Business Relations; (6) Tortious Interference with Prospective Business Relations; (7) Misappropriation of Trade Secrets in Violation of O.R.C. § 1333.61 et seq.; and (8) Conversion. Plaintiff Ecotec joins Micropower in asserting the sixth claim, Tortious Interference with Potential Business Relations. Defendant asserts that Micro-power’s Amended Complaint has failed to state a claim upon which relief can be granted. Defendant asserts that Ecotec’s claim should be dismissed as barred by res judicata because Ecotec already brought this claim, among others, against Ametek in an Ohio state court and failed. Ametek v. Keyser, et al. (Doc. 7-3.)

Because a valid contract exists between Micropower and Defendant with a forum-selection clause designating the federal or state courts of Pennsylvania to be the exclusive forum for the adjudication of any disputes, Defendant’s motion to dismiss Micropower’s claims via Fed.R.Civ.P. 12(b)(6) will be granted. Because Ecotec’s claim of Tortious Interference with Potential Business Relations has already been entertained and dismissed by another court, Defendant’s motion to dismiss Ecotec’s claim as barred by res judicata will [805]*805be granted. Because Plaintiffs’ claims are not frivolous, Defendant’s Motion for Rule 11 Sanctions will be denied.

I. Factual Background

When considering a motion to dismiss pursuant to Rule 12(b)(6), a court must construe the complaint in the light most favorable to the plaintiff and accept all well-pleaded material allegations in the complaint as true. Scheuer v. Rhodes, 416 U.S. 232, 236, 94 S.Ct. 1683, 40 L.Ed.2d 90 (1974); California Motor Transp. Co. v. Trucking Unlimited, 404 U.S. 508, 515, 92 S.Ct. 609, 30 L.Ed.2d 642 (1972). According to the Amended Complaint, Micropower is a multinational manufacturer of conventional and high-frequency chargers, incorporated in Sweden. (Am. Compl. ¶ 1, 3.) Ecotec, headquartered in Piqua, Ohio, is a wholly-owned subsidiary of Micropower which distributes Micro-power’s products in North America. (Id.) Defendant Ametek, a global electronic manufacturer, is incorporated in Delaware with its principal place of business being Pennsylvania. (Id. at ¶ 2, 3.) Defendant’s Prestolite Power Division, the division which manufactures and markets battery chargers, is based in Columbus, Ohio. (Id. at ¶2.)

In 2003/2004, Micropower and Ametek entered into a business relationship in which Ametek would distribute and sell Micropower’s high frequency chargers, including the ECLIPSE I, in the United States. (Id. at ¶ 9-11.) This business relationship was defined by a series of Purchase Orders (Doc. 7-5.) by which Defendant purchased the chargers from Micropower. (Doc. 7-1. at 19.) Plaintiffs allege that Ametek profited from selling the Micropower chargers and determined to copy the Micropower charger and manufacture their own. (Am. Compl. ¶ 11-12.)

Beginning in 2010, Ametek allegedly used its access to Micropower’s confidential information and trade secrets in order to more rapidly develop its own charger, the ECLIPSE II. (Id. at ¶ 13, 16, 17.) Plaintiffs allege that Ametek, instead of disclosing its plan, sought to mislead Micropower by promising purchases of larger volumes and insisting on a shorter delivery time in order to weaken Micropower’s competitiveness against Ametek’s forthcoming, copied product. (Id. at ¶ 13-14.) Ametek waited until after it had successfully manufactured its own charger to inform Micropower that it would be terminating • its business relationship with Micropower in order to sell its own chargers in competition with Micropower. (Id. at ¶ 18.) Micropower then incorporated Plaintiff Ecotec in order to sell Micropower’s charger and other products in the United States. (Id. at ¶ 20.) Ametek, now in competition with Ecotec, told Ecotec’s prospective customers that it should not do business with Micropower and Ecotec. (Id. at ¶ 45.)

In a case in an Ohio Court of Common Pleas, between Ametek (as plaintiff) and Ecotec (as a defendant), Ecotec brought the same claims alleged here as counterclaims against Ametek. The Ohio court dismissed the claims for failure to state a claim upon which relief could be granted because Ecotec did not have a contractual relationship with Ametek and Ecotec could not bring the claims on behalf of Micro-power. (Doc. 7-3.4.) The Ohio court opined, however, that Micropower could bring the claims on its own behalf in a separate litigation. Id.

II. Legal Standard

The purpose of a motion under Fed. R.Civ.P. 12(b)(6) is to test the sufficiency of the complaint. The Court is mindful that “a complaint should not be dismissed [806]*806for failure to state a claim unless it appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief.” Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957).

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Bluebook (online)
953 F. Supp. 2d 801, 2013 WL 3480378, 2013 U.S. Dist. LEXIS 94753, Counsel Stack Legal Research, https://law.counselstack.com/opinion/micropower-group-v-ametek-inc-ohsd-2013.