M.K. Plastics Corp. v. Rossi

838 N.E.2d 1068, 2005 Ind. App. LEXIS 2327, 2005 WL 3358644
CourtIndiana Court of Appeals
DecidedDecember 12, 2005
Docket49A05-0507-CV-370
StatusPublished
Cited by22 cases

This text of 838 N.E.2d 1068 (M.K. Plastics Corp. v. Rossi) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
M.K. Plastics Corp. v. Rossi, 838 N.E.2d 1068, 2005 Ind. App. LEXIS 2327, 2005 WL 3358644 (Ind. Ct. App. 2005).

Opinion

OPINION

BAKER, Judge.

Appellant-plaintiff M.K. Plastics Corporation (M.K. Plastics) appeals from the trial court's denial of its motion for preliminary injunction. Specifically, MK. Plastics contends that the trial court erred in concluding that MK. Plastics does not have protectible trade secrets under the Indiana Uniform Trade Secrets Act 1 (IUTSA) and that Rossi's actions did not constitute misappropriation of trade secrets under the IUTSA. Concluding that the trial court properly denied the motion for preliminary injunction, we affirm.

FACTS 2

MK. Plastics is a Canadian corporation with its principal place of business in Montreal. It is engaged in the business of manufacturing, designing, and selling laboratory exhaust fans. The co-owners of MK. Plastics are Minel Kupferberg, also known as Mel Cooper, and Robert Jeffrey Kupferberg, also known as Jeff Roberts (Roberts).

Rossi has two engineering degrees and has worked in the industrial heating, ventilating, and air conditioning industry in some capacity since 1977. From approximately 1994 to March 1999, Rossi worked as an independent manufacturer's representative of M.K. Plastics while employed by Indiana Steam and Process.

Beginning in March 1999, Rossi began working directly with M.K. Plastics to sell its fans exclusively. MK. Plastics contracted with Rossi to market its equipment, to establish manufacturer representatives across the United States, and to promote its products. Roberts agreed to *1071 give Rossi the title of Vice President of Sales and Marketing for the United States so that Rossi would have more authority in the sales field. Rossi operated largely autonomously and MK. Plastics had very little control over the performance of his sales and marketing responsibilities. MK. Plastics paid Rossi sales commissions, an annual bonus, and a monthly salary, though it withheld no taxes, and it provided him with health insurance benefits and paid for all of his business and office expenses.

During Rossi's tenure at M.K. Plastics, he had access to a "significant amount," Appellant's Br. p. 4, of the company's sensitive information by attending high-level meetings, helping to develop a corporate "master plan," id. p. 5, creating memoran-da that described product characteristics and applications, reading research and development work reports and design use and testing information on prototypes, and reviewing manufacturing drawings for laboratory exhaust fans and AutoCAD 3 drawings posted on the computer system by the company's engineers. Rossi also gathered and stored data-including information about the company's business, financial, and technical operations, the Maximizer program, and the V-Fan program-on three company computers.

The Maximizer program contained a database of contact information gathered by Rossi for manufacturer representatives, consulting engineers, and other business contacts within the industry. Rossi also used the program to keep track of representatives and forecast their sales. Following the termination of the relationship between Rossi.and MK. Plastics, Rossi provided the company with all information that was in the database, retaining only a copy of the contact information in the Maximizer. There is some confusion as to whether M.K. Plastics requested the password for the program, but Rossi contends that Roberts already had the password because he created the version of the software used by Rossi. MK. Plastics denies that it had the program's password. Ap-pellee's Br. P. 8-9.

The V-Fan program is the overall general database that M.K. Plastics uses to run its business, containing, among other things, the following information: inventory, prices and costs of each product, sales figures and forecast information, customer information, inventory, and research and development of projects. Appellee's Br. P. 10. According to Rossi, the software program was accessible to everyone within the company except for employees who worked in the factory. V-Fan is not generally password-protected, and Rossi notes that he only needed a password if he entered the program via the Internet to access the company's server. Roberts agrees that it was part of Rossi's job and appropriate for him to regularly download information contained in V-Fan to his personal computer. Rossi was chiefly interested in using the software to track representative sales activity. According to Rossi, he did not know that the software had an engineering database and did not ever access any such database.

A. Rossi Leaves MK. Plastics

On July 21, 2008, Rossi gave notice of his intent to end his affiliation with M.K. Plastics. Rossi's last day with M.K. Plastics was on July 31, 2003, on which date the company requested that he attend a meeting in Montreal,. At the meeting, MK. Plastics asked Rossi to sign a release *1072 agreement containing confidentiality and non-disclosure language. Rossi refused to sign the document.

Roberts had instructed Rossi to bring a Sony laptop and a computer projector to the Montreal meeting. He wanted the Sony laptop because it contained all of the MK. Plastics information currently being used by Rossi. Prior to the meeting, Ros-si copied onto the Sony laptop all of the MK. Plastics information that was on the other two computers that Rossi used for MK. Plastics business. The hard drives of those other two computers were then erased-with Roberts's permission, according to Rossi-but Rossi did not erase any information from the Sony laptop computer. In addition to the laptop, Rossi also sent five large boxes of documents and equipment to the Montreal meeting containing everything he believed was significant for the company to have prior to his departure.

At the meeting, Rossi gave MK. Plastics the Sony laptop, the projector, and various pending reports and orders. Rossi also answered all of Roberts's questions and reviewed information with Roberts regarding miscellaneous pending matters.

Following the meeting, during September and November 2008, Rossi sent several more shipments of large boxes to M.K. Plastics. The boxes included, among other things, miscellaneous files, CD backup disks, the other two computers Rossi had been using, a printer, office phone, digital camera, and seanner. MK. Plastics complained in October 2008 that Rossi still had unauthorized possession of company property. According to Rossi, there was some delay in returning all of the property to MK. Plastics because he had been traveling and was not at his house to package the rest of the documents and property. No one at M.K. Plastics ever followed up with Rossi regarding specific missing documents, existing projects, or independent manufacturer representatives with whom Rossi was working.

MK. Plastics became concerned when it realized that Rossi had erased or reformatted the hard drives of the two computers he had returned to the company. As noted above, Rossi explained that all of the data on those computers had been transferred to the Sony laptop and that the erasing of the hard drives was done with Roberts's permission. According to MK.

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Bluebook (online)
838 N.E.2d 1068, 2005 Ind. App. LEXIS 2327, 2005 WL 3358644, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mk-plastics-corp-v-rossi-indctapp-2005.