Pliteq, Inc. v. Mostafa

District Court, S.D. Florida·Decided February 25, 2025·No. 1:23-cv-24868·Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA

CASE NO. 23-CV-24868-ELFENBEIN

PLITEQ, INC., et al.,

Plaintiffs,

v.

MAGED MOSTAFA,

Defendant. ______________________________/

ORDER DENYING DEFENDANT’S MOTION TO STRIKE PORTIONS OF EXPERT WITNESS REPORT AND EXCLUDE IMPROPERLY OBTAINED EVIDENCE

THIS CAUSE is before the Court on Defendant’s Motion to Strike Portions of Plaintiff’s Expert Witness Report and Exclude Improperly Obtained Evidence (the “Motion to Strike”), ECF No. [150]. Plaintiffs Pliteq, Inc. and Pliteq Building Materials, LLC’s (collectively “Plaintiffs”) filed their Response in Opposition to the Motion to Strike (the “Response”), ECF No. [154], and Defendant thereafter filed his Reply and Memorandum of Law in Support of Motion to Strike Plaintiffs’ Exhibits (“Reply”), ECF No. [158]. The Motion is now ripe for review. For the reasons explained below, the Motion to Strike, ECF No. [150], is DENIED. I. BACKGROUND This case arises out of a dispute between an employer (Plaintiffs) and a former employee (Defendant). According to the Amended Complaint, Pliteq is “a successful engineering services and manufacturing firm” that is “widely recognized as an industry leader in sound reduction technology.” See ECF No. [120] at 3. Pliteq is a Canadian company, but it employs people in many other countries, including the United States and the United Arab Emirates (“UAE”). See ECF No. [120] at 2-3. PBM is an affiliate of Pliteq based in and organized under the laws of the UAE. See ECF No. [120] at 2. Defendant is a “former high-level employee of PBM” who lives in Dubai. See ECF No. [120] at 2, 5. Specifically, Defendant held various managerial positions, including as “PBM’s General Manager from 2018 to 2023,” “a member of Pliteq’s Corporate Executive Counsel” from 2020 to 2023, “Pliteq’s acting Director, Rail Business Unit . . .

responsible for team development and strategy” from 2021 to 2023, and “Pliteq’s Vice President, Corporate Development and Marketing.” See ECF No. [120] at 5. According to the Amended Complaint, Defendant “was employed as PBM’s General Manager pursuant to a written employment contract” that “contained a strict confidentiality provision prohibiting the use or disclosure of PBM’s confidential and trade secret information.” See ECF No. [120] at 5. Defendant also allegedly “executed a stand-alone confidentiality agreement with Pliteq” in which he agreed “to use Pliteq’s proprietary information ‘solely for the purpose of reasonably completing his or her employment,’” “to maintain it ‘in confidence,’” and to “‘not, directly or indirectly, disclose’” it. See ECF No. [120] at 6. Defendant was terminated from his employment with Plaintiffs in November 2023. See

ECF No. [120] at 5. Plaintiffs allege that Defendant’s termination resulted from his “massive download” of Pliteq’s proprietary information that he has kept on his “personal data accounts” and has “failed and refused to return” or destroy, instead “threatening (directly and indirectly) to disclose or sell” the information to Pliteq’s competitors. See ECF No. [120] at 5. Plaintiffs also allege that Defendant has “admitted that he . . . downloaded the [i]nformation to a personal cloud- based account” but has failed to “cooperate” with their investigation into the downloads, instead taking “affirmative steps . . . to cover his tracks and sabotage” the investigation. See ECF No. [120] at 8. As a result, Plaintiffs filed this action against Defendant alleging seven counts: misappropriation of trade secrets pursuant to 18 U.S.C. § 1836 (Count I), unfair competition under Florida common law (Count II), injunctive relief (Count III), breach of employment contract (Count IV), breach of confidentiality agreement (Count V), breach of fiduciary duty (Count VI),

and conversion (Count VII). See ECF No. [120] at 10–20. Against this backdrop, Defendant seeks to strike portions of Plaintiffs’ expert witness report and exclude improperly obtained evidence, but Defendant never identifies the expert by name or provides a copy of the expert report he seeks to strike. See generally ECF No. [150] and [158]. In their Response, Plaintiffs do not mention their expert by name either or otherwise provide his report. See generally ECF No. [154]. All the Court knows about this expert and his report is that Plaintiffs produced his expert witness report to Defendant on October 30, 2024, and that the “expert witness report relies heavily on and includes private data and personal information from Defendant’s personal laptop that was unlawfully seized.” See ECF No. [150] at 1.1 Specifically, Defendant seeks to strike portions of the expert report and certain “improperly

obtained evidence” for three reasons. First, Defendant argues that the “expert report improperly includes and relies on,” among other things, “private and personal photos that were password protected;” “deleted personal data forensically recovered without authorization;” “information obtained through criminally proven theft;” “private communications unrelated to any business purpose;” and data accessed after Pliteq’s CEO, Paul Downey (“Downey”), signed a “police

1 As a preliminary matter, without a copy of the expert report at issue, the Court lacks necessary information to understand the context for the opinions or information that Defendant seeks to strike. For example, the Motion asks the Court to “[s]trike all portions of Plaintiff’s expert report relying on unlawfully obtained data” and to “[s]trike all portions of Plaintiff’s expert report that mentions any data that is unrelated to a business purpose” but, without a copy of the report, even if the Court were inclined to grant the Motion to Strike, the Court has no way of knowing which part of the report would satisfy this criteria. Nonetheless, as explained below, the failure to identify the expert or provide a copy of his expert report are not the reasons the Motion is denied. declaration not to access the laptop.” ECF No. [150] at 6. In light of the foregoing, Defendant argues that the evidence must be excluded under “[t]he fruit of the poisonous tree doctrine” because “the Dubai Criminal Court has conclusively established through criminal conviction that Plaintiffs obtained the laptop through theft.” Id. at 5. As the evidence Plaintiffs seek to use was

“derived from a criminally proven illegal seizure” and no exceptions to this doctrine apply, such as “[n]o [i]ndependent [s]ource,” “[n]o [i]nevitable [d]iscovery,” “[n]o [i]ntervening [a]ct,” and “[n]o [g]ood [f]aith,” Defendant argues that “the data included in” the expert witness report “should be excluded to uphold this fundamental principle.” Id. (citing Sun v. United States, 371 U.S. 471 (1963)). Next, the Motion to Strike relies on principles of international comity and asks this Court to recognize Dubai’s judicial ruling that “[a]ffirmed Defendant’s ownership [of the laptop] based on purchase records and shipping information,” that “[e]stablished the criminal conviction of Paul Downey for theft,” which “substantiates the unlawfulness of the seizure,” and that, based on the Dubai Police Forensics Report, “the Defendant committed no wrongdoing” so the Court should reject a claim of trade secret misappropriation. Id. at 6. Finally, Defendant argues

that the exclusion of this evidence would be [c]onsistent with [e]stablished [p]rivacy [p]rotections for [p]ersonal [e]lectronic [d]ata,” citing to Riley v. California, 573 U.S. 373 (2014) for the proposition that there is a heightened expectation of privacy in personal electronic devices and that accessing such data without authorization is a violation of one’s privacy rights.

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