Modular Mining System, Inc. v. Jigsaw Technologies, Inc.

212 P.3d 853, 221 Ariz. 515, 555 Ariz. Adv. Rep. 18, 2009 Ariz. App. LEXIS 79
CourtCourt of Appeals of Arizona
DecidedApril 30, 2009
Docket2 CA-CV 2008-0118
StatusPublished
Cited by42 cases

This text of 212 P.3d 853 (Modular Mining System, Inc. v. Jigsaw Technologies, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Modular Mining System, Inc. v. Jigsaw Technologies, Inc., 212 P.3d 853, 221 Ariz. 515, 555 Ariz. Adv. Rep. 18, 2009 Ariz. App. LEXIS 79 (Ark. Ct. App. 2009).

Opinion

OPINION

ESPINOSA, Judge.

¶ 1 Modular Mining Systems, Inc. (“Modular”) challenges the trial court’s grant of summary judgment in favor of appellees Jigsaw Technologies, Inc.; Jonathan Olson and Nayade Olson; and Sergio Blacutt and Gail Blacutt (collectively, “Jigsaw”). We affirm.

Factual and Procedural Background

¶ 2 On appeal from a summary judgment, we view the facts in the light most favorable to the party against whom judgment was entered and draw all justifiable inferences in its favor. Ratliff v. Hardison, 219 Ariz. 441, ¶ 2, 199 P.3d 696, 697 (App.2008); Nat’l Bank of Ariz. v. Thruston, 218 Ariz. 112, ¶ 17, 180 P.3d 977, 981 (App.2008). “However, we consider as true those facts alleged by [the moving partyj’s affidavits that [the nonmoving party] did not controvert.” Jennifer G. v. Ariz. Dep’t of Econ. Sec., 211 Ariz. 450, ¶ 3, 123 P.3d 186, 188 (App.2005).

¶ 3 Modular' manufactures a mine-management system known as “Dispatch,” which is a combination of hardware and software that gathers data about a mine’s equipment and calculates the equipment’s optimal use. The Dispatch system consists of a central server and one or more field units that are attached to mobile mining equipment, such as trucks and mining shovels. Each Dispatch field unit is equipped with a wireless transceiver that sends and receives messages from the central server regarding the equipment’s location and operation.

¶ 4 Jonathan Olson is a former employee of Modular. He resigned his position as Modular’s chief technical officer in August 2003 but continued to work as a part-time consultant through March 2004. Olson and Sergio Blacutt, another former employee of Modular, formed Jigsaw in October 2003, initially to create software products for the quarry industry, a market Modular does not serve. Less than a year later, however, Jigsaw expanded its products to include the mining industry, placing Jigsaw in direct competition with Modular. Jigsaw’s mine-management system is marketed under the name “Mi-neOps.” Like Dispatch, MineOps provides mine monitoring and optimization through wireless communications between a central server and field units mounted on the mine’s mobile equipment.

¶ 5 Modular filed this action in 2004. Its original complaint named Jigsaw and eight individual defendants and included claims of misappropriating trade secrets in violation of Arizona’s Uniform Trade Secrets Act, 1 unfair competition, intentional interference with business relationships, intentional interference with contract, “aiding and abetting,” and conspiracy, as well as claims of breach of employment agreements and breach of the covenant of good faith and fair dealing. Modular also sought a preliminary injunction against Jigsaw. The trial court denied the requested injunction in May 2005 after a five-day evidentiary hearing, and this court affirmed on appeal. Modular then amended its complaint in August 2007. The amended complaint sought only injunctive relief and punitive damages, named half of the original individual defendants, and abandoned Modular’s claims of conspiracy, aiding and abetting, and breach of the covenant of good faith and fair dealing.

¶ 6 In its statutory trade secrets claim, Modular contended Jigsaw had misappropriated two computer configuration codes (“commands”) and used them to allow Jig *518 saw’s field units to communicate with Modular’s field units aboard selected vehicles at two mines in Peru and Argentina. 2 Modular sought injunctive relief prohibiting Jigsaw from utilizing these commands.

¶ 7 Jigsaw moved for summary judgment on all of Modular’s claims in January 2008. In its reply to Modular’s opposition to its motion, Jigsaw asserted it had been unaware Modular considered the particular commands to be trade secrets until Jigsaw took the deposition of Modular’s expert in February 2008. 3 Jigsaw further asserted that, upon learning Modular considered the commands to be trade secrets, it immediately discontinued their use and implemented an alternate procedure using a command contained in. Modular’s published guides and manuals. Jigsaw disputed Modular’s assertion that the two commands at issue were trade secrets, and it maintained that, in any event, the Dispatch systems would be decommissioned in both mines by the end of 2008. 4 Modular did not dispute that Jigsaw was using the commands only at the two specified mines in Peru and Argentina or its assertion that both mines stopped using Dispatch during 2008.

¶ 8 The trial court granted Jigsaw’s summary judgment motion in its entirety. As part of its decision, the court determined Modular’s claim for injunctive relief was moot. It also awarded Jigsaw its requested attorney fees, in the amount of $510,561.50, pursuant to A.R.S. §§ 12-341.01 and 44-404. We have jurisdiction over Modular’s appeal pursuant to A.R.S. §§ 12 — 120.21(A)(1) and 12-210KB).

Discussion

¶ 9 Modular argues the trial court erred in finding its claim for injunctive relief moot, in granting summary judgment on its trade secrets claim, and in awarding attorney fees. 5 “We review a superior court’s ‘grant of summary judgment on the basis of the record made in [that] court, but we determine de novo whether the entry of [summary] judgment was proper.’ ” Nat’l Bank, 218 Ariz. 112, n. 3, 180 P.3d at 980 n. 3, quoting Schwab v. Ames Constr., 207 Ariz. 56, ¶ 17, 83 P.3d 56, 60 (App.2004) (alterations in Nat’l Bank). In determining whether the court properly granted summary judgment, we apply the same standard a trial court uses in ruling on a summary judgment motion. Id.

¶ 10 The entry of summary judgment is appropriate “if the pleadings, depositionLs], answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Ariz. R. Civ. P. 56(c)(1).

When a moving party meets its initial burden of production by showing that the non-moving party does not have enough evidence to carry its ultimate burden of proof at trial, the burden then shifts to the non-moving party to present sufficient evidence demonstrating the existence of a genuine factual dispute as to a material fact.

Nat’l Bank, 218 Ariz. 112, ¶ 26, 180 P.3d at 984. “To defeat the motion, the non-moving *519 party must call the court’s attention to evidence overlooked or ignored by the moving party or must explain why the motion should otherwise be denied.” Id.

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Bluebook (online)
212 P.3d 853, 221 Ariz. 515, 555 Ariz. Adv. Rep. 18, 2009 Ariz. App. LEXIS 79, Counsel Stack Legal Research, https://law.counselstack.com/opinion/modular-mining-system-inc-v-jigsaw-technologies-inc-arizctapp-2009.