Seeley International PTY Ltd. v. Maisotsenko

CourtUnited States Bankruptcy Court, D. Colorado
DecidedOctober 8, 2025
Docket25-01096
StatusUnknown

This text of Seeley International PTY Ltd. v. Maisotsenko (Seeley International PTY Ltd. v. Maisotsenko) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Seeley International PTY Ltd. v. Maisotsenko, (Colo. 2025).

Opinion

UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF COLORADO Bankruptcy Judge Joseph G. Rosania, Jr.

In re:

VALERIY S. MAISOTSENKO, Case No. 24-17511-JGR SSN: xxx-xx-3125, Chapter 7 SVETLANA Y. AGRICH, SSN: xxx-xx-2505,

Debtors.

SEELEY INTERNATIONAL PTY LTD., Adv. Pro. No. 25-01096-JGR

Plaintiff, v.

VALERIY S. MAISOTSENKO,

Defendant.

ORDER GRANTING SUMMARY JUDGMENT

THIS MATTER is before the Court on the Motion for Summary Judgment (“Motion”) filed by the Plaintiff, Seeley International Pty Ltd. (“Seeley”) on July 17, 2025 (Doc. 21); Defendant’s Opposition to Plaintiff’s Motion for Summary Judgment (“Response”), filed by Valeriy S. Maisotsenko (“Maisotsenko”) on August 5, 2025 (Doc. 22); the Reply in Support of Motion for Summary Judgment (“Reply”), filed by Seeley on August 19, 2025 (Doc. 25); and the Appendix to Reply in Support of Plaintiff’s Motion for Summary Judgment (“Appendix”) (Doc. 26). Seeley requests summary judgment on its claim that the debt owed by Maisotsenko is excepted from discharge for willful and malicious injury under 11 U.S.C. § 523(a)(6). The Court has subject matter jurisdiction over the adversary proceeding under 28 U.S.C. § 1334; 28 U.S.C. § 157(a); and 28 U.S.C. §§ 157(b)(1) and (b)(2)(I).

INTRODUCTION

Seeley seeks summary judgment on its claim under 11 U.S.C. § 523(a)(6) excepting its prepetition judgment from discharge. The Motion argues that findings of fact and conclusions of law entered in the prepetition litigation are sufficient to apply the doctrine of collateral estoppel, or issue preclusion, to prevent the parties from having to relitigate the issue of whether the judgment arises from willful and malicious conduct satisfying the elements of 11 U.S.C. § 523(a)(6).

In addition to determining whether the findings of fact and conclusions of law are detailed and specific on the identical issue in question, and that the facts underlying the findings are sufficient to apply collateral estoppel, the Court must also determine if Maisotsenko had a full and fair opportunity to litigate the claims as the judgment was a default judgment. For the reasons set forth below, the Court grants Seeley’s Motion.

BACKGROUND

This dispute arises from the acquisition of certain patents and intellectual property rights relating to a product known as M-Cycle. The M-Cycle is described by Seeley in its Complaint:

Maisotsenko is the credited inventor of a revolutionary air-cooling methodology and technology known in the HVAC industry as the Maisotsenko Cycle or M-Cycle. The M-Cycle uses thermodynamics and psychrometric renewable energy to achieve cooler air faster and more efficiently than a traditional air cooler. The M-Cycle is based on an air- cooling method known as indirect evaporative cooling. Indirect evaporative cooling occurs by injecting water onto the exterior or interior walls of a heat exchanger. The heat exchanger evaporates the water which imparts a cooling effect to the opposite side of the walls. The chilled surface of the heat exchanger wall then cools passing airflow. (Complaint, Doc. 1, ¶ 5). After a series of transactions, Seeley eventually acquired the patents and intellectual property related to M-Cycle from third party companies. The acquisition included a non-competition and non-solicitation agreement executed by Maisotsenko.

Among other wrongs, Seely claimed Maisotsenko breached the non-competition and non-solicitation agreement and filed a civil action in the United States District Court for the District of Colorado styled Seeley International Pty Ltd. v. Valeriy S. Maisotsenko, M-Cycle Industries Inc, and M-Cycle Corporation Ltd., Case No. 21-cv-01350-CMA-KLM (“District Court Action”), alleging patent infringement, breach of contract, and trade secret misappropriation.

FACTUAL BACKGROUND

In its Motion, Seeley alleges the following facts are undisputed as previously determined by the Order Awarding Damages in the District Court Action attached to the Motion as Exhibit 1:

On or about June 10, 2015, Seeley and nonparty Coolerado Corporation (“Coolerado”) entered into the Asset Purchase Agreement (“APA”) wherein Seeley paid Coolerado and nonparty Idalex Technologies, Inc. (“Idalex”) $2,225,000.00 for their business assets. (Motion, ¶ 3). Plaintiff’s intent behind acquiring Coolerado and Idalex’s business assets was to obtain the intellectual property, industry know-how, and exclusive right-of-use of the M-Cycle, which it achieved by purchasing from Coolerado and Idalex a number of international and domestic patents, trade secrets, and intellectual property comprising the M-Cycle. (Motion, ¶ 4). Plaintiff would not have entered into the APA without essential components and protections. (Motion, ¶ 5). The purchase incorporated the following patents: US 6497107 B2 – Application No. 09/916800; US 6581402 B2 – Application No. 09/966928; US 6705096 B2 – Application No. 10/316775; US 6776001 B2 – Application No. 10/203195; US 7197887 B2 – Application No. 10/397901; and US 7228699 B2 – Application No. 11/061124 (collectively referred to herein as the “Patents”). (Motion, ¶ 6). The Patents capture, comprise, and protect the technology, methodology, and inventions that comprise the M-Cycle, and each Patent was uniquely critical to the use and implementation of the M-Cycle. (Motion, ¶ 7). These patents and the exclusive right to use the technology captured therein was of paramount importance to Plaintiff entering into the APA. (Motion, ¶ 8). Plaintiff would not have entered into the APA if it did not provide for Plaintiff’s acquisition and the exclusive rights to the M-Cycle technology. (Motion, ¶ 9). In addition to the intellectual property associated with the M-Cycle, Plaintiff sought to acquire the practical know-how of creating an air-cooling product using the M-Cycle. Accordingly, the APA called for Dr. Maisotsenko to work for Plaintiff as its Chief Scientist. (Motion, ¶ 10). In joining Plaintiff as an employee, Dr. Maisotsenko—like other employees of the acquired Idalex and Coolerado—signed Non-Competition and Non- Solicitation Agreements, which contain restrictive covenants protecting the confidentiality of Plaintiff’s technical information, designs, processes, procedures, memoranda, notes, information, records, strategic plans, marketing plans and strategies, pricing information sales information, customer lists and contact information, customer prospects and employees, and other information of a confidential or proprietary nature, including all information and know-how associated with the M-Cycle. (Motion, ¶ 11). Defendant and Plaintiff also entered into an employment contract in which Defendant agreed to an additional confidentiality provision, which runs in perpetuity. (Motion, ¶ 12). Defendant’s employment contract also contained a non-compete provision which prohibits him from carrying on or participating in “any business or entity engaged in the design, manufacture, distribution, marketing, and/or sale of evaporative coolers” for the duration of his employment and for one year following the termination of that employment. (Motion, ¶ 13). Defendant did not comply with his obligations under his agreements with Plaintiff. (Motion, ¶ 14).

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Seeley International PTY Ltd. v. Maisotsenko, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seeley-international-pty-ltd-v-maisotsenko-cob-2025.