Precision Airmotive Corp. v. Rivera

288 F. Supp. 2d 1151, 2003 U.S. Dist. LEXIS 23758, 2003 WL 22430166
CourtDistrict Court, W.D. Washington
DecidedJuly 10, 2003
Docket2:02-cv-01946
StatusPublished
Cited by6 cases

This text of 288 F. Supp. 2d 1151 (Precision Airmotive Corp. v. Rivera) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Precision Airmotive Corp. v. Rivera, 288 F. Supp. 2d 1151, 2003 U.S. Dist. LEXIS 23758, 2003 WL 22430166 (W.D. Wash. 2003).

Opinion

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT

ROTHSTEIN, District Judge.

THIS MATTER comes before the court on Defendants’ motion to dismiss. Having reviewed the pleadings filed in support of and in opposition to this motion, the court finds and rules as follows:

I. BACKGROUND

From 1977 to 1983, Defendant Donald Rivera worked for the Fuel Controls Group of Bendix Corp. developing fuel injection systems. In 1983 Bendix was acquired by Allied Signal, Inc. On his departure in 1984, Rivera began his own business, Airflow Performance Inc., which develops, manufactures, and sells fuel control systems. A year later, Airflow began to produce and sell its series of “FM” fuel controls.

In 1988, Plaintiff Precision Airmotive Corporation (“PAC”) bought an entire line of fuel injection systems and their derivatives from Allied Signal, Inc. This purchase included the RSA-5DD1 fuel injection system and design. In PAC’s first amended complaint, PAC alleges that Rivera and Airflow incorporate the RSA-5DD1 technology in their FM-series devices. PAC asserts claims for misappropriation of trade secrets, breach of contract, 1 and unfair competition. Defendants respond that regardless of the merits of these claims, PAC’s claims are all barred by the appropriate statutes of limitation. PAC’s reply is that the limitations periods did not accrue until 2001, when it alleges it first discovered the bases for its claims.

II. DISCUSSION

A. Motion to dismiss

1. Summary judgment standard

Summary judgment is appropriate when “the pleadings ... show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c); Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). As PAC has alleged only state law claims in this diversity action, state law determines the untimeliness of those claims. Guaranty Trust Co. v. York, 326 *1153 U.S. 99, 108-11, 65 S.Ct. 1464, 89 L.Ed. 2079 (1945).

Under Washington law, where a defendant moves for summary judgment on the basis of an affirmative defense such as the appropriate statute of limitations, the defendant bears the initial burden of proving the absence of an issue of material fact as to that defense. Haslund v. City of Seattle, 86 Wash.2d 607, 621, 547 P.2d 1221 (1976). Where, however, a plaintiff invokes the discovery rule to counter the statute of limitations defense, 2 the burden is also on that plaintiff to show that facts constituting the cause of action were not discovered or could not have been discovered by due diligence within the limitations period. G.W. Constr. Corp. v. Prof'l Serv., Indus., Inc., 70 Wash.App. 360, 367, 853 P.2d 484 (1993); accord Giraud v. Quincy Farm and Chem., 102 Wash.App. 443, 449-50, 6 P.3d 104 (2000) (“To invoke the discovery rule, the plaintiff must show that he or she could not have discovered the relevant facts earlier.”).

Because the gravamen of all of PAC’s claims is the alleged misappropriation of the RSA-5DD1 technology, the relevant inquiry into the statute of limitations defense is to determine when PAC knew or should have known of that misappropriation. Though statute of limitations questions often involve questions of fact, Green v. A.P.C., 136 Wash.2d 87, 100, 960 P.2d 912 (1998), such “factual questions may be decided as a matter of summary judgment if reasonable minds can reach but one conclusion on them.” Allen v. State, 118 Wash.2d 753, 760, 826 P.2d 200 (1992).

2. Application of the discovery rule

In the present case, there is undisputed evidence that PAC had in its possession an FM-200 device manufactured by Defendants as early as 1993. Jenson Decl. ¶ 5; Ex. C, Coleen Rivera Decl. (May 22, 2003). That unit was disassembled no later than 1994 “to determine and analyze its configuration and inner workings.” Jenson Decl. ¶ 5 (Jan. 30, 2003). That model does not differ in any material respect from Airflow’s current models. Coleen Rivera Decl. ¶ 8 (May 22, 2003). Consequently, PAC had in its possession all that was necessary for it to discover any alleged misappropriation as early as 1994. See Chasteen v. UNISIA JECS Corp., 216 F.3d 1212, 1219 (10th Cir.2000) (purchase and inspection of product gives “further reason” to find that plaintiff “either knew or should have discovered the alleged misappropriation”). Furthermore, PAC was well aware of Donald Rivara’s prior employment and work at Bendix, Suppl. Jenson Decl. ¶ 3. As the Fifth Circuit stated in Seatrax, Inc. v. Sonbeck Int’l, Inc., 200 F.3d 358, 366 (5th Cir.2000), “[suspicions should abound when a competitor markets a product similar to that previously developed by a former employer after one of the former employer’s employees begins work for the competitor.”

PAC attempts to dispute these facts through Scott Grafenauer’s declaration. Grafenauer, PAC’s current general manager, declares that it was not PAC’s intention to investigate the unit purchased from Airflow in 1993 to determine whether it incorporated the RSA-5DD1 technology, and that in fact, PAC was not even focused on that technology at the time. Grafe-nauer Decl. ¶¶ 3-5. Grafenauer, however, did not join PAC until 1998. His declaration, therefore, cannot be based on personal knowledge. See Fed.R.Civ.P. 56(e) (“Supporting and opposing affidavits shall be made on personal knowledge.”). The *1154 court concludes that PAC fails to raise any dispute of fact as to whether it knew or should have known of any alleged misappropriation as early as 1994.

Furthermore, PAC presents no evidence as to why it could not have discovered the infringement within the limitations period. Giraud, 102 Wash.App. at 449-50, 6 P.3d 104.

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288 F. Supp. 2d 1151, 2003 U.S. Dist. LEXIS 23758, 2003 WL 22430166, Counsel Stack Legal Research, https://law.counselstack.com/opinion/precision-airmotive-corp-v-rivera-wawd-2003.