Nedschroef Detroit Corp. v. Bemas Enterprises LLC

106 F. Supp. 3d 874, 2015 U.S. Dist. LEXIS 66967, 2015 WL 2453511
CourtDistrict Court, E.D. Michigan
DecidedMay 22, 2015
DocketCivil Case No. 14-10095
StatusPublished
Cited by19 cases

This text of 106 F. Supp. 3d 874 (Nedschroef Detroit Corp. v. Bemas Enterprises LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nedschroef Detroit Corp. v. Bemas Enterprises LLC, 106 F. Supp. 3d 874, 2015 U.S. Dist. LEXIS 66967, 2015 WL 2453511 (E.D. Mich. 2015).

Opinion

OPINION AND ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFFS’ MOTION FOR SUMMARY JUDGMENT

LINDA V. PARKER, District Judge.

Plaintiffs initiated this lawsuit after discovering that Defendants Marc A. Rigole (“Rigole”) and Bernard E. LePage (“Le-Page”), former employees of Plaintiff Nedschroef Detroit Corporation (“Nedschroef Detroit”), had formed a competing company, Bemas Enterprises LLC (“Bemas”) while still working for Nedschroef Detroit. According to Plaintiffs, Rigole and LePage used Plaintiffs’' equipment, personnel, and trade secrets to start up and run Bemas. Presently before the Court is Plaintiffs’ motion for summary judgment, filed pursuant to Federal Rules of Civil Procedure 56 on February 16, 2015. The motion has been fully briefed. Finding the facts and legal arguments sufficiently presented in the parties’ pleadings, the Court dispensed with oral argument pursuant to Eastern District of Michigan Local Rule 7.1(f) on April 30, 2015. For the reasons that follow, the Court grants summary judgment to Plaintiffs on all but two of their claims.

I. Summary Judgment Standard

Summary judgment pursuant to Federal Rule of Civil Procedure 56 is appropriate “if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(a). The central inquiry is “whether the evidence presents a sufficient disagreement to 'require submission to a jury or whether it is so one-sided that one party must prevail as a matter of law.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 251-52, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). After adequate time for discovery and upon motion, Rule 56 mandates summary judgment against a party who fails to establish the existence of an element essential to that party’s case and on which that party bears the burden of proof at trial. Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986).

The movant has the initial burden of showing “the absence of a genuine issue of material fact.” Id. at 323, 106 S.Ct. 2548. Once the movant meets this burden, the “nonmoving party must come forward with specific facts showing that there is a genuine issue for trial.” Matsushita Electric Indus. Co. v. Zenith Radio. Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986) (internal quotation marks and citation omitted). To demonstrate a genuine issue, the nonmoving party must present sufficient evidence upon which a jury could reasonably find for that party; a “scintilla of evidence” is insufficient. See Liberty Lobby, 477 U.S. at 252, 106 S.Ct. 2505.

“A party asserting that a fact cannot be or is genuinely disputed” must designate specifically the materials in the record supporting the assertion, “including depositions, documents, electronically stored information, affidavits or declarations, stipulations, admissions, interrogatory answers, or other materials.” Fed.R.Civ.P. 56(c)(1). The court must accept as true the nonmovant’s evidence and draw “all justifiable inferences” in the non-movant’s favor. See Liberty Lobby, 477 U.S. at 255, 106 S.Ct. 2505.

II. Factual and Procedural Background

Nedschroef Herentals, N.V. is a Dutch manufacturer of industrial machines that produce metal fasteners, such as nuts, bolts, and screws. Dozens of North American fastener manufacturers use those machines. In order to service and provide replacement parts for the machines, Ned[879]*879schroef Detroit was formed as a Michigan corporation in approximately 1991. Nedschroef Detroit and Nedschroef Herentals are subsidiaries of Nedschroef Holding B.V. (collectively “Nedschroef’).

Rigole was assigned to run Nedschroef Detroit when it first opened. (Pls.’ Mot., Ex. 2 at 13-16.) He served as the manager of Nedschroef Detroit from 19911996 and from 2004-2013. As the manager, Rigole was the highest ranking Nedschroef employee in North America, and supervised the other Nedschroef Detroit employees. (Id. at 16, 27-28.) Rigole’s job duties included servicing Nedschroef machines and providing replacement parts for those machines. Rigole had the authority to issue quotations, order replacement parts from suppliers, enter into contracts, and sign checks on behalf of Nedschroef. (Id. at 27.) He also had access to Nedschroefs passcode-protected proprietary part design drawings, customer lists, supplier lists, pricing information, and financial information. (Id. at 19, 21-24, 28, 55-56.)

In 2005, LePage was hired to work as a project and service engineer for Nedschroef Detroit. (Pl.’s Mot., Ex. 3 at 11.) His job duties included servicing Nedschroef machines and providing replacement parts for those machines. (Id. at 19-20.) LePage also had the authority to issue quotations, order replacement parts from suppliers, enter into contracts, and sign checks on behalf of Nedschroef. (Id. at 19-20, 23.) He also had access to Nedschroefs passcode-protected proprietary part design drawings, customer lists, supplier lists, pricing information, and financial information. (Id. at 20, 22, 27.)

In December 2010 or January 2011, Rigole, LePage, and other Nedschroef Detroit employees were informed that Nedschroef Detroit would be closed within a year unless its business improved. (Pls.’ Mot., Ex. 2 at 39-41, 74; Ex. 3 at 16-18, 31; Ex. 6 at 7.) Employees, including Rigole and LePage, received a pay cut at this time. (Id., Ex. 2 at 40; Ex. 3 at 18.) About a month later, Rigole, LePage, Rigole’s wife Christine Van Looveren (“Van Looveren”), and LePage’s then girlfriend and now wife Cynthia Lupo (“Lupo”), began to discuss the idea of forming a company to service Nedschroef machines and supply replacement parts for those machines purportedly in the event that Nedschroef Detroit closed. (Pl.’s Mot., Ex. 2 at 39-40; Ex. 3 at 31, 36; Ex. 4 at 9; Ex. 5 at 10.) They formed Bemas a few months later, in about June 2011, naming Van Looveren and Lupo as its owners. (Id., Ex. 6 at 6.)

According to Rigole, Bemas was formed under Van Looveren’s and Lupo’s names instead of Rigole’s and LePage’s names because an unidentified lawyer advised them that it was illegal for Rigole and LePage to open the company under their own names. (Pl.’s Mot., Ex. 2 at 42-43.) As reflected in Van Looveren’s and Lupo’s deposition testimony in this matter, they in fact never participated in the daily operations of Bemas and know little about Be-mas’ business. (Id., Ex. 4 at 14-19, 24-25, 30; Ex. 5 at 9-17.) LePage acknowledged during his deposition that Van Looveren and Lupo were “not really active” in the business of Bemas and that they probably never sent an email from Bemas’ address. (Id., Ex. 3 at 40, 56.)

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106 F. Supp. 3d 874, 2015 U.S. Dist. LEXIS 66967, 2015 WL 2453511, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nedschroef-detroit-corp-v-bemas-enterprises-llc-mied-2015.