Roger Smith v. Stockmeier Urethanes U.S.A., Inc.

CourtWest Virginia Supreme Court
DecidedOctober 6, 2021
Docket19-0410 & 20-0352
StatusPublished

This text of Roger Smith v. Stockmeier Urethanes U.S.A., Inc. (Roger Smith v. Stockmeier Urethanes U.S.A., Inc.) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Roger Smith v. Stockmeier Urethanes U.S.A., Inc., (W. Va. 2021).

Opinion

FILED October 6, 2021 EDYTHE NASH GAISER, CLERK STATE OF WEST VIRGINIA SUPREME COURT OF APPEALS

SUPREME COURT OF APPEALS OF WEST VIRGINIA

Roger Smith, Defendant Below, Petitioner

vs.) No. 19-0410 (Harrison County 17-C-349)

Stockmeier Urethanes U.S.A., Inc., a West Virginia Corporation, Plaintiff Below, Respondent

and

vs.) No. 20-0352 (Harrison County 17-C-349-2)

Stockmeier Urethanes U.S.A., Inc., a West Virginia Corporation, Plaintiff Below, Respondent 1

MEMORANDUM DECISION

Petitioner Roger Smith, by counsel Gregory H. Schillace, appeals the orders of the Circuit Court of Harrison County awarding a preliminary injunction against petitioner, denying petitioner’s motion to disqualify the trial judge, and awarding sanctions against petitioner and his counsel. Further, petitioner argues that at the trial of this matter, the jury was not properly instructed. Respondent Stockmeier Urethanes U.S.A., Inc. by counsel Susan L. Deniker and Shawn A. Morgan, filed a response in support of the circuit court’s orders.

This Court has considered the parties’ briefs and the record on appeal. The facts and legal arguments are adequately presented, and the decisional process would not be significantly aided by oral argument. Upon consideration of the standard of review, the briefs, and the record presented, we find that the circuit court did not err. For this reason, a memorandum decision affirming the circuit court’s order is appropriate under Rule 21 of the Rules of Appellate Procedure.

1 By this Court’s order dated November 16, 2020, Case Nos. 20-0352 and 19-0410 were consolidated for the purposes of consideration and decision. 1 Respondent is a company that “develops, produces, and sells polyurethane systems.” The company supplies liquid urethanes materials to customers throughout the country for purposes of making things like playground mulch, turf for athletic fields, superglue, and sponges. Petitioner was formerly employed as respondent’s Chief Operating Officer and Senior Advisor. In 2013, and again in January of 2017, respondent and petitioner entered into employment agreements to “prevent [petitioner] from engaging in misappropriation of [respondent’s] trade secrets and/or from improperly accessing, using, or disclosing [respondent’s] confidential and/or proprietary information.” Despite the prohibitions contained within these agreements, on August 16, 2017, petitioner was observed carrying several binders of information related to his work to his car. 2 From February 2, 2017, through August 9, 2017, respondent contends that petitioner “used removable storage devices . . . and/or used a cloud-based storage medium . . . to acquire, download, and store confidential and proprietary information from respondent’s computer systems.”

On September 1, 2017, respondent’s president and CEO, wrote to petitioner reminding petitioner of “his obligations to preserve confidentiality of [respondent’s] proprietary information” and to insist “that [petitioner] immediately take the necessary steps to address and mitigate his violations of his employment agreement.” Respondent’s president and CEO wrote to petitioner again on September 12, 2017, terminating petitioner’s employment and reminding petitioner of his “obligations to preserve confidentiality of [respondent’s] proprietary information.”

On November 9, 2017, respondent filed the underlying action against petitioner after learning that petitioner, in contravention of his employment agreement with respondent, had removed binders from respondent’s property; had used removable storage devices to download and store respondent’s confidential and/or proprietary information; and had e-mailed respondent’s proprietary and/or confidential information to a shared personal e-mail account. Respondent further discovered that petitioner had created, saved, and printed documents evidencing that he intended to start a competing business and had permanently deleted the “sent” and “deleted” item folders on his company e-mail account.

In its underlying suit against petitioner, respondent asserted clams for breach of confidentiality, misappropriation of trade secrets, and for declaratory and monetary relief. As to declaratory relief, respondent sought a declaration that petitioner, “by virtue of his employment [with respondent] and as part of his employment arrangement with [respondent], is liable to keep confidential all proprietary information gleaned during the course of his employment with [respondent].” Further respondent sought a declaration that petitioner “may not appropriate any [of respondent’s] trade secret[s]” and that petitioner “must produce his personal computing devices . . ., cellular telephone, e[-]mail accounts, [binders], and any thumb driver [or] other storage medium he used to preserve confidential or proprietary information . . . .” Respondent also asked for a declaration that petitioner was “obligated either to return any confidential or proprietary information,” and that petitioner “must disclose to [respondent] any disclosure he made of [respondent’s] confidential or proprietary information.”

2 Security video footage showed petitioner carrying said binders to his car “on six separate occasions on that day, using different doors.” 2 Following the filing of its complaint, on November 13, 2017, respondent moved for a preliminary injunction against petitioner. Petitioner opposed an injunction. A hearing was held before the circuit court on December 8, 2017. By order entered on January 4, 2018, respondent was awarded a preliminary injunction. Specifically, the court found that respondent met its burden “to establish that [it] is likely to succeed on the merits, that [it] is likely to suffer irreparable harm [in] the absence of preliminary relief, that the balance of the equities tips in [its] favor, and that an injunction is in the public interest.” The court directed petitioner to provide to respondent “certain items of personal property for inspection.”

On March 16, 2018, respondent served its first set of discovery requests upon petitioner to determine what “confidential and proprietary information” petitioner had taken, where he had taken and stored such information, and whether he had returned all documents. Petitioner did not timely respond to the requests, despite two good faith letters from respondent. On May 10, 2018, respondent filed a motion to compel petitioner’s responses and argued that the requests for admission be deemed admitted. Thereafter on June 5, 2018, respondent noticed the depositions of two individuals for June 20, 2018, in Iowa. On June 21, 2018, petitioner filed a motion to quash the subpoenas associated with the Iowa depositions, arguing that Iowa rules governing depositions and subpoenas had not been followed. 3

Respondent responded to the motion to quash and argued the subpoenas were proper, that the motion to quash was not timely filed, and that respondent’s counsel and representatives had already departed for Iowa before the motion to quash was faxed to respondent’s counsel. Further, respondent argued that petitioner had contacted both of the Iowa deponents and “convinced one of them not to appear.” Respondent argued that based on petitioner’s actions it could not “draw any conclusion other” than petitioner “had acted in bad faith to obstruct and interfere with the discovery process.”

On June 26, 2018, petitioner responded to respondent’s first set of discovery requests. Respondent deemed the responses incomplete (citing that the same were incomplete, evasive, contained unverified answers to interrogatories, and produced no documents), and, on July 13, 2018, respondent filed a second motion to compel petitioner to cease interference with discovery and motion for sanctions.

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Cite This Page — Counsel Stack

Bluebook (online)
Roger Smith v. Stockmeier Urethanes U.S.A., Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/roger-smith-v-stockmeier-urethanes-usa-inc-wva-2021.