NEW JERSEY DEER CONTROL, LLC v. EN GARDE DEER DEFENSE, LLC

CourtDistrict Court, D. New Jersey
DecidedJune 3, 2024
Docket3:24-cv-05587
StatusUnknown

This text of NEW JERSEY DEER CONTROL, LLC v. EN GARDE DEER DEFENSE, LLC (NEW JERSEY DEER CONTROL, LLC v. EN GARDE DEER DEFENSE, LLC) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
NEW JERSEY DEER CONTROL, LLC v. EN GARDE DEER DEFENSE, LLC, (D.N.J. 2024).

Opinion

NOT FOR PUBLICATION

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

NEW JERSEY DEER CONTROL, LLC, Plaintiff, Civil Action No. 24-5587 (MAS) (RLS) * MEMORANDUM OPINION EN GARDE DEER DEFENSE LLC, et al., Defendants.

SHIPP, District Judge This matter comes before the Court on Plaintiff New Jersey Deer Control, LLC’s (“Plaintiff’ or “NJDC”) Motion for a Temporary Restraining Order and Preliminary Injunction (ECF No. 2) against Defendants En Garde Deer Defense, LLC (“En Garde”) and its owner, Jeffrey Ardo (“Ardo”) (collectively, “Defendants”). Defendants opposed the Motion (ECF No. 13), and Plaintiff replied (ECF No. 14). The Court has carefully considered the parties’ submissions and decides the matter without oral argument under Local Civil Rule 78.1. For the reasons set forth below, Plaintiff's Motion is denied. 1. BACKGROUND A. Factual Background The underlying facts giving rise to this action are relatively straightforward, but heavily disputed. By way of background, NJDC is a deer repellant service provider for residential, landscaping, and nursery customers throughout New Jersey and New York. (Compl. 7, ECF No. 1.) Over the last twenty years, Plaintiff has utilized a “formerly patented deer formula” in

conjunction with “proprietary and confidential spraying techniques” to offer deer damage solutions for its customers. (/d. § 8.) NJDC refers to its techniques and strategies as a “System” that constitutes protectable “Trade Secrets.”! (Ud. {ff 8-9.) In short, NJDC’s System and Trade Secrets

are composed primarily of: (1) the deer repellant’s formula, creation, and storage; (2) the best practices for applying the formula; and (3) various business practices for optimal support of NJDC’s operations. (See id.) To safeguard its System and Trade Secrets, NIJDC requires its “train

spray technicians”, employees, and licensees to sign confidentiality and non-disclosure agreements. (/d. { 10.) . At the center of this dispute is a Licensing Agreement between Plaintiff and Defendants. (Id. § 11.) In Plaintiff's telling, Ardo, with little to no experience in the deer control industry, approached NJDC in early 2017 to use “NJDC’s then-patented deer repellant spray and proprietary and confidential application techniques and strategies for a deer repellant and damage control business” in the State of Ohio. (/d.) These discussions culminated in Ardo’s creation of En Garde,

a limited liability company based in Ohio, of which he is the sole member. ([d.; see also Cert. of Jeffrey Ardo [“Ardo Cert.”] 95, ECF No. 13-1.) En Garde operates “exclusively” in Ohio and does

not operate in New Jersey. (Ardo Cert. § 7.)

| Plaintiff alleges its System and Trade Secrets are, among other things, comprised of: (1) “a confidential and proprietary repellant mixing procedure (beyond that claimed in the patent for the repellant formula)”; (2) “confidential and proprietary strategies concerning the use of specific spray applicators”; (3) a “confidential and proprietary spray schedule”; (4) compilations of data for various plant species, respective tolerance to deer repellant spray, and training materials for spray technicians; (5) “a confidential list of key preferred vendors”; and (6) “customized, confidential, and proprietary project estimating, bidding, and pricing methodology.” (Compl. § 9.)

On March 6, 2017, the parties entered the subject Licensing Agreement, wherein Defendants? received a seven-year license to: (1) “obtain the right to use the patented formula in connection with the deer repellant spraying service”; (2) “obtain the rights to use the techniques and strategies developed by [NJDC] in the Territory ... and to receive training and other assistance provided by [NJDC]”; and (3) “obtain the rights to use the [Trademarks?.]” (See Licensing Agreement 1, annexed to Complaint as “Exhibit B”, ECF No. 1.) Specifically, Defendants were granted a “non-exclusive, royalty-bearing license to use [NJDC’s] Trademarks and to use, sell, and offer for sale the System limited to the Territory”. Ud. §§ 2.1, 10.1.) The Territory covered the following counties in Ohio: “Cuyahoga, Geauga, Medina, Lake, Summit, Portage, Stark, and Lorrain” (the “Territory”). Ud. § 1.3.4 In exchange for access to NJDC’s System, Trademarks, and Trade Secrets, Defendants agreed to compensate NJDC with a royalty fee. (ld. FJ 17-18.) (See also Licensing Agreement § 3, § 3.2.) Defendants also agreed to various confidentiality, non-disclosure, and restrictive covenants following termination of the Licensing Agreement. (a. { 18.) Defendants agreed, for example, to discontinue the use or sale of the Trademarks and System within thirty days of termination. (Licensing Agreement §§ 10.3, 11.1.) Under Section 11.5(b) of the Licensing Agreement, it was further stipulated that: upon the expiration, termination, or transfer of all [of En Garde’s] interest in this [Licensing] Agreement, or from the time the [sic] [Ardo] ceases to be a Principal of [En Garde], and continuing for three (3) years thereafter, neither [En Garde] nor [Ardo] . . . shall 2 The Licensing Agreement “was signed by Ardo both individually and on behalf of En Garde in his capacity as its ‘Principal.’” (Compl. | 12.) 3 NIDC’s “Trademarks” are defined to include the marks of “DEER REPELLENT SPECIALISTS” and “DEER GUYS”. (Compl. § 19.) 4 Defendants received an option to renew the Licensing Agreement for an additional seven years so long as it provided NJDC with advance written notice. (/d. § 10.1.1.)

directly or indirectly own, manage, operate, join, control, or participate in the ownership, management, operation, or control of any business offering deer repellant and/or deer control services in the Territory or directly or indirectly divert any business, customer, or potential customer of the business to any competitor, or do or perform any other act injurious or prejudicial to the goodwill associated with the Trademark[s] and System. (Id. § 11.5(b).) For the next few years, the parties operated under the Licensing Agreement without incident. (Compl. 26.) Plaintiff states that it upheld its end of the bargain by providing Defendants with access to “the System, the NJDC training and support, and the NJDC goodwill associated with [the] Trademarks[,]” allowing En Garde to “quickly become a leading deer repellant provider throughout the Territory.” (Jd. {| 26-27.) Defendants similarly represent that that they upheld their obligations and paid Plaintiff a royalty fee of $365,000 over the course of their agreement. (Ardo Cert. { 16.) In September 2022, Plaintiffs patent expired, at which time Ardo asserts that he “no longer

saw the value of continuing the [L]icens[ing] [A]greement after it[s] expir[ation] in March 2024.” (Compl. § 29; see also Def.’s Opp’n Br., Ex. 2, ECF No. 13-2.) In October 2023, Ardo communicated to NJDC that he did not intend to renew the Licensing Agreement and that he would proceed with operating En Garde in the Ohio Territory. (Compl. ¥ 29.) On March 6, 2024, the Licensing Agreement expired. (Compl. { 30.) That same day, Plaintiff sent correspondence to Ardo reiterating the Licensing Agreement’s post-termination restrictions and covenants and advising that a breach of the same would result in legal action. (Id. { 31.) Plaintiff alleges that Ardo nevertheless “continues to operate En Garde within the Territory, and upon information and belief uses NJDC’s Trade Secrets, including the proprietary and confidential System, techniques, and training provided by NJDC.” (a. 33.)

B. Procedural History This federal action commenced on April 24, 2024. (Compl.) In its Complaint, Plaintiff seeks injunctive relief and damages arising from the alleged misappropriation and misuse of

Plaintiffs confidential information and trade secrets. (See generally id.) The Complaint brings

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Bluebook (online)
NEW JERSEY DEER CONTROL, LLC v. EN GARDE DEER DEFENSE, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-jersey-deer-control-llc-v-en-garde-deer-defense-llc-njd-2024.