Ridge Corporation v. Altum LLC

CourtDistrict Court, S.D. Ohio
DecidedAugust 22, 2025
Docket2:21-cv-05915
StatusUnknown

This text of Ridge Corporation v. Altum LLC (Ridge Corporation v. Altum LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ridge Corporation v. Altum LLC, (S.D. Ohio 2025).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF OHIO EASTERN DIVISION

RIDGE CORPORATION,

: Plaintiff,

Case No. 2:21-cv-5915

v. Chief Judge Sarah D. Morrison

Magistrate Judge Elizabeth A.

Preston Deavers

ALTUM, LLC, et al., :

Defendants.

OPINION AND ORDER This is a commercial dispute with very personal implications. Ridge Corporation is a central-Ohio thermoplastics company founded by Gary Grandominico. Dominic Grandominico (Gary’s son), Greg Karst, and Kyle Gaines worked at Ridge until 2018; in 2019, they formed Altum, LLC. Ridge discovered in late-2021 that Altum was competing in the thermoplastics arena and filed suit. Dominic, Mr. Karst, and Mr. Gaines filed counterclaims. Defendants now move for summary judgment. For the reasons below, the Motion is GRANTED in part and DENIED in part. I. FACTUAL BACKGROUND A. The Parties Ridge is a manufacturing and engineering company that specializes in continuous fiber-reinforced thermoplastics (CFRTs). It uses CFRTs to create structural sandwich panels that can replace similar panels made of heavier or more expensive materials. Creating sandwich panels involves layering different kinds of plastics together, then laminating them into the panel. Plastic sandwich panels are challenging to create because the plastics used in the panel are chemically difficult to bond. Manufacturers like Ridge engage in extensive research and testing to

identify the best methods of bonding dissimilar plastics. Dominic, Mr. Karst, and Mr. Gaines (the “Individual Defendants”) all had jobs at Ridge that involved helping it find better ways to create sandwich panels. Dominic was Ridge’s Director of Operations, Mr. Karst was the Product Development Engineer, and Mr. Gaines was the Director of Purchasing. Mr. Karst conducted research into bonding different kinds of plastics; the other two focused on customer interaction and operations. All three resigned from Ridge in 2018.

Dominic remained a member of Ridge’s Board of Directors for three years after leaving Ridge; he is a shareholder to this day. B. The Patent Filings Three patent filings are important to this dispute. Each addresses a method to bond chemically dissimilar plastics. They are: Mitsubishi’s 2015 patent application for a “Laminate Containing Coated Polyester Film” (Mitsubishi Application, ECF No. 134-3); Ridge’s 2015 patent application for a “Dual Coated

Film Product” (Ridge Application, ECF No. 1-3); and Altum’s 2021 patent for a “Structural Member Consisting of Dissimilar Polymer Materials” (Altum Patent, ECF No. 147-4). The Mitsubishi Application describes a method of bonding fiber-reinforced polypropylene (PP) articles to polyethylene terephthalate (PET) film using a polyester film coated with a mixture of an adhesive agent and a cross-linking agent. (Mitsubishi Application, ¶ 0013.) The adhesive agent is EIF-1312 (a chemical produced by Michelman) and the cross-linking agent is WS-700 (a chemical produced by Nippon Shokubai). (Id., ¶¶ 0037, 0090.) The U.S. Patent Office

ultimately granted the Mitsubishi Application. (ECF No. 134-2.) Two months after the Mitsubishi Application was filed, Raymond McDonald, Jr., filed the Ridge Application. It also describes a method for bonding PP articles to dissimilar materials using a PET film coated in a chemical treatment. (Id., ¶ 0012.) The Ridge Application does not specify what chemicals are used, but Ridge asserts that the chemical treatment (and not the PET film to which it is applied) is the “key element[] in the technology.” (Compl., ECF No. 1, ¶ 15.) The day before the Ridge

Application was filed, the Individual Defendants executed Patent Assignments purporting to assign their rights in the Dual Coated Film Product to Ridge “for good and valuable consideration.” (ECF No. 1-2.) The U.S. Patent Office denied the Ridge Application, and Ridge permitted it to lapse. Finally, in 2021, Altum successfully applied for the Altum Patent. The Altum Patent describes a sandwich panel consisting of a foam core sandwiched between

fiber-reinforced thermoplastic skins. The skins are bonded to the foam core using only a chemical mixture (called a “crosslinking nanolayer”) that is sprayed directly onto the plastics, rather than onto a carrier film. C. The Dispute After filing the Ridge Application, Ridge continued its work on bonding chemically dissimilar plastics. In 2016, Ridge was experimenting with ways to create sandwich panels from a PET foam core and PP composite skins. After trying and failing to bond the PET foam core directly to the PP skins, Ridge began to use a PP film called 903J between the layers to create the bond. By 2018, Ridge grew dissatisfied with the PET foam core’s performance, and began using a PP foam core

in its sandwich panels.1 During that time, Mr. Karst continued work on bonding dissimilar plastics. In April 2017, he reached out to Nippon Shokubai to request a sample of WS-700, explaining that he was looking for ways to improve adhesion to PET film. The following year, while working on a different project, Mr. Karst emailed Michelman searching for chemicals that would “increase the compatibility of various fillers with the [PP] matrix.” A Michelman representative suggested ME91735. At some point

after receiving ME91735 in Spring 2018, Mr. Karst combined it and WS-700 in a spray bottle for the purpose of developing a field repair patch from PP film to PET film. He quickly discontinued that research, after Gary told him the method was ill- suited for a field repair. After leaving Ridge, the Individual Defendants eventually developed a mixture of WS-700 and ME91735 to bond PP skins directly to PET foam cores. That

success comprises the technology in the Altum Patent. In this lawsuit, Ridge asserts that Mr. Karst’s 2017–18 research was integral to the “proprietary information underlying the development” of the Dual Coated Film Product, and it claims that the information gleaned from that research was

1 Ridge produced fewer than ten sandwich panels with PET foam cores before switching to a using a PP foam core. (ECF No. 127-1, 39:1–3.) Ridge would not produce a sandwich panel with a PET foam core again until 2023. (Id., 48:1–13.) wrongfully stolen by Defendants to develop and patent their “Structural Member Consisting of Dissimilar Polymer Materials.” According to Ridge, the technology comprising the Altum Patent is “wholly derivative” of the Ridge Application—and

represents research Mr. Karst undertook while a Ridge employee. After discovering the Altum Patent, Ridge removed Dominic from its Board of Directors and filed this suit. II. PROCEDURAL BACKGROUND In the final days of 2021, Ridge filed a Complaint asserting the following claims: Count I: Misappropriation of Trade Secrets (Federal) Against All Defendants Count II: Misappropriation of Trade Secrets (Ohio) Against All Defendants Count III: Breach of Patent Assignment Against Dominic, Mr. Karst, and Mr. Gaines Count IV: Conversion Against All Defendants Count V: Breach of Fiduciary Duty Against Dominic Count VI: Conspiracy Against Dominic, Mr. Karst, and Mr. Gaines (ECF No. 1.) After Defendants moved to dismiss Ridge’s Complaint (ECF No. 24), this Court dismissed only Count IV (Conversion). (ECF No. 55.) Defendants then filed an Answer and Counterclaim, asserting two claims against Ridge: Counterclaim I: Books and Records By Dominic Counterclaim II: Indemnification By Dominic, Mr. Karst, and Mr. Gaines (Countercl., ECF No. 65.) Defendants now move for summary judgment on all remaining claims and counterclaims. (Mot., ECF Nos. 134 (redacted) and 135 (sealed).) Ridge responded in opposition (Resp., ECF Nos. 147 (redacted) and 158 (sealed)) and Defendants replied (Reply, ECF No. 156). The motion is thus ripe for consideration. III. LEGAL STANDARD

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