Rotec Industries, Inc. v. Mitsubishi Corp.

179 F. Supp. 2d 885, 2002 U.S. Dist. LEXIS 102, 2002 WL 13815
CourtDistrict Court, C.D. Illinois
DecidedJanuary 4, 2002
Docket99-2080
StatusPublished
Cited by6 cases

This text of 179 F. Supp. 2d 885 (Rotec Industries, Inc. v. Mitsubishi Corp.) is published on Counsel Stack Legal Research, covering District Court, C.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rotec Industries, Inc. v. Mitsubishi Corp., 179 F. Supp. 2d 885, 2002 U.S. Dist. LEXIS 102, 2002 WL 13815 (C.D. Ill. 2002).

Opinion

ORDER

McCUSKEY, District Judge.

On April 12,1999, Plaintiff, Rotee Industries, Inc., filed its Complaint (# 1) against Defendants, Mitsubishi Corporation (MC), Mitsubishi International Corporation (MIC), Tucker Associates, Inc. and Garry Tucker (collectively referred to as “Tucker”). This case is now before the court for ruling on Defendants’ Motion for Summary Judgment (# 39). Following this court’s careful and thorough review of the documents submitted by the parties and the arguments of the parties, Defendants’ Motion (# 39) is GRANTED.

FACTS 1

This action concerns the Three Gorges Dam Project in China. When completed, the Three Gorges Dam will be the largest *887 hydropower project in the world. It will stretch over a mile wide across the Yangtze River. Construction of the dam began in 1993. It will take 17 years to build and will be completed in three stages. Construction of this enormous project will require placement of approximately 27,000,000 cubic meters of concrete. The China Yangtze Three Gorges Project Development Corporation (CTGPC) is the “owner” of the Three Gorges Dam Project.

Plaintiff, an Illinois company whose principal place of business is in Elmhurst, Illinois, manufactures heavy construction machinery, including concrete placement equipment. Plaintiff’s largest product is its Towerbelt, a tower crane supported articulated concrete conveyor belt system. Robert F. Oury, Plaintiffs chief executive-officer, invented the Towerbelt and assigned the patent for the Towerbelt to Plaintiff. This patent expired in March 1998. Oury made many visits to China, including one in September 1993, to discuss using Plaintiffs equipment, including the Towerbelt, in the;'construction of the Three Gorges Dam. Leon Umberger, Plaintiffs projects manager at that time, also visited China in September 1993. In China, Umberger worked with Wong Yong Hong, a Chinese engineer, in preparing drawings showing how Plaintiffs equipment could be used in constructing the Three Gorges Dam Project. The Chinese retained possession of these drawings.

In November 1993, Wong Yong Hong, Li Shuensha, another Chinese engineer, and Ms. Huang Wenxia, an interpreter, came to Plaintiffs office in Illinois to work on a feasibility study (Study) regarding the use of Plaintiffs equipment for concrete placement at the Three Gorges Dam Project. Steven Ledger, Plaintiffs president, was the principal person involved' in the preparation of the Study on Plaintiffs side. Ledger testified that Wong and Li, the two Chinese engineers, provided background and scheduling information for the Study. However, Ledger also testified that the Chinese engineers were “involved every step of the way” and worked at Plaintiffs office until the Study was completed in February 1994. The document was entitled Concrete Construction Equipment for Three Gorges Project and was 50 pages long. The Study consisted of five chapters. Chapter 1 contained general information about the Three Gorges Dam Project which was provided by the Chinese. Chapter 2 contained a proposal for concrete placement for Stage I utilizing Plaintiffs equipment. Chapter 3 was a proposal for concrete placement for Stage II, and Chapter 4 was a proposal for concrete placement for Stage III. Chapter 5 consisted of drawings of Plaintiffs equipment. The Contents page at the beginning of the Study was stamped with a confidentiality stamp, which stated, in pertinent part, “Notice: This Drawing Contains Confidential Information and is the Exclusive Property of Rotee Industries.” This language was also included on most of the drawings in Chapter 5. The Study was translated from English to Chinese at Plaintiffs office. The Chinese version did not include any confidentiality language except on the Chapter 5 drawings.

In early February 1994, a ten-member Chinese delegation visited Plaintiffs offices in Illinois and also visited the Huites Dam in Mexico which was being built using Plaintiffs equipment. The members of this delegation were all provided with the Chinese version of the Study. CTGPC later prepared a detailed report regarding the delegations’ visit to Plaintiffs offices and the Huites Dam in Mexico, as well as other locations. This report included a detailed summary of the Study. The report had no confidential markings or statements in it. MC received a copy of this Inspection Report from CTGPC.

*888 ■ On February 19, 1994, Plaintiff and the CTGPC entered into an Agreement of Intent. This agreement stated that the “proposal prepared by [Plaintiff] for the first stage concrete placement for [the Three Gorges Dam Project] is technically reasonable and feasible. Rotee conveyors can be used as important concrete placement equipment for the first stage.” The agreement also stated that “the proposal for the second stage concrete placement could be an important alternative solution and needs further study.” The agreement further stated that CTGPC intended to purchase from Plaintiff one Towerbelt and two Creter Cranes. This equipment was for Stage I of the Three Gorges Dam Project. Plaintiff agreed to present a formal quotation to CTGPC within 10 days.

Plaintiff prepared a document called a Pro Forma Quotation which was dated March 1, 1994. This was Plaintiffs formal quotation for providing equipment and services for Stage I of the Three Gorges Dam Project. It was submitted to CTGPC on or about March 1, 1994. This document was not marked or stamped confidential. On April 13,1994, Masaji Santo of MC and Saturo Noda from MIC met with John Mattson, Plaintiffs assistant sales manager, and Ken Novak, a financial consultant for Plaintiff, at Plaintiffs office. MC is a large Japanese trading company based in Tokyo, Japan, and MIC is a subsidiary of MC with a place of business in Chicago. MC had been involved in the supply of construction equipment in connection with the Three Gorges Dam Project. During the course of the April 13, 1994, meeting, the representatives of MC and Plaintiff discussed the possibility of MC financing the purchase or lease of equipment as well as using MC’s contacts in China to assist Plaintiff.

During the meeting at Plaintiffs offices, Masaji Santo showed Mattson a copy of the Pro Forma Quotation. Takashi Hase-gawa of MC testified that he received the Pro Forma Quotation from CTGPC because of MC’s interest in providing financing for the purchase of Plaintiffs equipment for Stage I of the Three Gorges Dam Project. Hasegawa testified that MC wanted to work together with Plaintiff. He testified that the Pro Forma Quotation was not used by MC in bidding on providing equipment for Stage II. Following the April 13, 1994, meeting, Plaintiff had subsequent discussions with MIC and MC regarding the possibility of a business relationship between Plaintiff and MC.

Plaintiff revised .the Pro Forma Quotation several times. On November 15, 1994, Plaintiff and CTGPC entered into a contract to provide equipment for Stage I of the Three Gorges Dam Project. The agreement provided that CTGPC would pay Plaintiff $13,400,000 for the equipment and services, significantly less than the price proposed in the March 1, 1994, Pro Forma Quotation. The equipment actually provided by Plaintiff for Stage I was different from the equipment specified in the Pro Forma Quotation and different from what was proposed in the Study. In addition, the equipment was used and set up differently on the job site.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Destiny Health, Inc. v. Connecticut General Life Insurance Company
2015 IL App (1st) 142530 (Appellate Court of Illinois, 2015)
Destiny Health, Inc. v. Connecticut General Life Insurance Company
2015 IL App (1st) 142530 (Appellate Court of Illinois, 2015)
First Financial Bank, N.A. v. Bauknecht
71 F. Supp. 3d 819 (C.D. Illinois, 2014)
Unisource Worldwide, Inc. v. Swope
964 F. Supp. 2d 1050 (D. Arizona, 2013)
United States Gypsum Co. v. Lafarge North America, Inc.
508 F. Supp. 2d 601 (N.D. Illinois, 2007)
Hauck Manufacturing Co. v. Astec Industries, Inc.
375 F. Supp. 2d 649 (E.D. Tennessee, 2004)

Cite This Page — Counsel Stack

Bluebook (online)
179 F. Supp. 2d 885, 2002 U.S. Dist. LEXIS 102, 2002 WL 13815, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rotec-industries-inc-v-mitsubishi-corp-ilcd-2002.