North Highland Inc. v. Jefferson Machine & Tool Inc.

2017 WI 75, 898 N.W.2d 741, 377 Wis. 2d 496, 2017 WL 2876152, 2017 Wisc. LEXIS 390
CourtWisconsin Supreme Court
DecidedJuly 6, 2017
Docket2015AP000643
StatusPublished
Cited by19 cases

This text of 2017 WI 75 (North Highland Inc. v. Jefferson Machine & Tool Inc.) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
North Highland Inc. v. Jefferson Machine & Tool Inc., 2017 WI 75, 898 N.W.2d 741, 377 Wis. 2d 496, 2017 WL 2876152, 2017 Wisc. LEXIS 390 (Wis. 2017).

Opinions

ANN WALSH BRADLEY, J.

f 1. Petitioner, North Highland, Inc., seeks review of an unpublished per curiam opinion of the court of appeals affirming a circuit court grant of summary judgment in favor of Frederick A. Wells ("Wells").1 The court of appeals [500]*500determined that the circuit court properly entered summary judgment in favor of Wells. It concluded that North Highland failed to present evidence sufficient to support either its claim of conspiracy to breach a fiduciary duty or its claim of misappropriation of a trade secret. N. Highland Inc. v. Jefferson Mach. & Tool Inc., No. 2015AP643, unpublished slip op., ¶¶ 11, 26 (Wis. Ct. App. Apr. 28, 2016).

f 2. North Highland contends that the court of appeals erred and that it is entitled to summary judgment in its favor. It alleges that Wells conspired to breach a fiduciary duty that Dwain Trewyn ("Trewyn"), a former North Highland employee, owed to the company. North Highland further contends that Wells misappropriated a trade secret in violation of Wis. Stat. § 134.90 (2013—14) (Uniform trade secrets act).2

¶ 3. In this review of a grant of summary judgment, we examine the conspiracy and misappropriation claims through the lens of sufficiency of evidence. We determine that North Highland has not met its burden to show that there exists a genuine issue of material fact as to either claim. Consequently, due to insufficiency of evidence, both of North Highland's claims fail to survive Well's summary judgment motion.3

[501]*501¶ 4. Accordingly, we affirm the decision of the court of appeals affirming the circuit court's grant of summary judgment in favor of Frederick Wells.4

I—l

¶ 5. This review originates from a lawsuit North Highland brought against Frederick Wells, Dwain Trewyn, Bay Plastics, Inc., and Jefferson Machine & Tool Inc. ("Jefferson Machine").

[502]*502¶ 6. Wells is the owner of Bay Plastics, a distrib-uter of customized plastic parts that it purchased from vendors. One of its vendors was North Highland, a small manufacturing company. Trewyn was an employee of North Highland with job duties that included submitting quotes and obtaining business for the company.5

¶ 7. When Wells decided that he wanted to form a company to manufacture the parts Bay Plastics sold, he asked Trewyn to be his partner in the new business. While Trewyn was still employed at North Highland, he and Wells formed their new manufacturing company, Jefferson Machine.6 Wells owned 75 percent of Jefferson Machine and Trewyn owned 25 percent.

¶ 8. The underlying dispute arose when both North Highland and Jefferson Machine submitted confidential bids on a manufacturing project for Tyson Foods Inc. ("Tyson").7 North Highland alleges that while Trewyn was still its employee, he formulated confidential bids for both North Highland and Jefferson Machine, the company he co-owned with Wells.

¶ 9. Jefferson Machine was awarded the Tyson project, but its contract was cancelled after North Highland threatened to seek an injunction, blocking the performance of the contract. Ultimately, neither Jefferson Machine nor North Highland was awarded the Tyson contract.

[503]*503¶ 10. North Highland subsequently filed a lawsuit against Trewyn, Jefferson Machine, Wells, and Bay Plastics. In its amended complaint, North Highland alleged that: (1) the defendants misappropriated trade secrets; (2) Trewyn breached his fiduciary duties to North Highland and that the other defendants conspired with Trewyn in the breach of those duties; (3) Trewyn breached his contract with North Highland; and (4) the defendants interfered with Trewyn's contract with North Highland.

¶ 11. The affidavits on file demonstrate that during litigation, both Wells and Trewyn repeatedly testified at their depositions that Wells had no knowledge that Trewyn was bidding on behalf of North Highland. For example, Wells testified:

Q: Did you know that [Trewyn] was doing bidding on behalf of North Highland to some customers—
A: No.
Q: —from September to December of 2011?
A: No.

¶ 12. Wells also repeatedly testified that he had no knowledge that Trewyn was bidding specifically on the Tyson project for North Highland. For example, he testified:

Q: Did you know that [Trewyn] submitted a bid for trolleys to Tyson?
A: No, I did not.
Q: Did you know that [Trewyn] submitted any other bids to Tyson for trolleys?
A: Any other bids?
[504]*504Q: On North Highland's behalf.
A: No.

f 13. Trewyn similarly testified that Wells had no knowledge Trewyn was bidding on the lyson project for North Highland:

Q: And [Wells] knew about your work with Tyson, for example?
A: I didn't discuss Tyson stuff with him, no.
[[Image here]]
Q: Did you tell [Wells] that you had submitted the bid [for North Highland] in Exhibit 1?
A: No.
Q: Why not?
A: Because there was really no reason to discuss that with him.
[[Image here]]
Q: Is there any reason why you didn't mention your work on the trolleys at North Highland to [Wells]?
A: There was no reason to.
Q: You didn't think it was important?
A: No.

f 14. In addition, Wells repeatedly denied that he formed Jefferson Machine to compete against North Highland:

Q: Did you understand that Jefferson Machine & Tool was a competing business of North Highland?
[505]*505A: No, no, not necessarily.
[[Image here]]
Q: But you knew when you started Jefferson Machine & Tool that it would be a competing business to North Highland?
A: I did not know that, no.8

¶ 15. Wells further testified that he left the bidding at Jefferson Machine up to Trewyn:

Q: When [Trewyn] was doing bids for you at Jefferson Machine & Tool, did you leave quoting entirely up to him?
A: Yes.
Q: And you didn't have any oversight over his bidding, right?
A: No.
Q: Did you ever ask him about how he formulated bids?
A: No, I did not.
Q: So you just left quoting at Jefferson Machine & Tool up to [Trewyn]?

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Cite This Page — Counsel Stack

Bluebook (online)
2017 WI 75, 898 N.W.2d 741, 377 Wis. 2d 496, 2017 WL 2876152, 2017 Wisc. LEXIS 390, Counsel Stack Legal Research, https://law.counselstack.com/opinion/north-highland-inc-v-jefferson-machine-tool-inc-wis-2017.