Silversun Indus., Inc. v. PPG Indus., Inc.

296 F. Supp. 3d 936
CourtDistrict Court, E.D. Illinois
DecidedNovember 6, 2017
DocketNo. 17 C 4346
StatusPublished
Cited by7 cases

This text of 296 F. Supp. 3d 936 (Silversun Indus., Inc. v. PPG Indus., Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Silversun Indus., Inc. v. PPG Indus., Inc., 296 F. Supp. 3d 936 (illinoised 2017).

Opinion

Jeffrey Cole, United States Magistrate Judge

INTRODUCTION

Defendant, PPG, is a Forbes 500, multi-billion dollar, world-wide company, in the business of supplying paints, paint coatings, optical products, and specialty materials. Defendant, PPG Kansai Automotive Finishes U.S., LLC, is a joint venture between PPG Industries and Kansai Paint of Japan. According to the Complaint, the Plaintiff develops chemical technologies "to replace traditional tools that have negative environmental impact." Specifically, it develops "detackifiers," which are agents used to remove the "stickiness from among other things, paint and flocculant polymers to aid in automotive paint booth operations." [Dkt. #1]. The Plaintiff has alleged that the Defendants misappropriated its complicated Trade Secret for use in the Defendant's business-a charge the Defendants have denied. [Dkt. # 26].

The parties have essentially agreed on a Protective Order to govern future proceedings in this case. They cannot, however, agree on whether Ms. Anne M. Foulkes, one of PPG's in-house counsel, should have access to the Plaintiff's claimed Trade Secret. Ms. Foulkes, a twenty two-year-veteran with PPG, is, among other things, its corporate Secretary, who, its counsel conceded at oral argument, attends meetings of the Board of Directors in an "advisory capacity."1 Ms. Foulkes says she has "commercial legal responsibilities for the majority of PPG's business units,"-and they are many-but not, she says, "the business unit at issue in this litigation (PPG's Automotive OEM Coatings business)." [Dkt. # 37-1-C, ¶3-4]. (Emphasis supplied)(parenthesis in original). Nor, she says, does she have legal responsibility for PPG's Architectural Coatings Business unit. Id. She *939does not explain even generally what "commercial legal responsibilities" means or of what it consists, or with whom she interacts with regularity.

Despite the breadth of Ms. Foulke's approved, virtually unlimited participation in this case, and the eminent skill and experience of their retained counsel, Reed Smith-which has some 1,700 plus lawyers in offices around the world-the Defendants insist in their brief that unless she has access to the Plaintiff's Trade Secret information, they cannot litigate the present case "efficiently and effectively." We take this otherwise unelaborated and unexplained assertion with a grain of salt since "[l]awyers' talk is no substitute for data." Phillips v. Allen , 668 F.3d 912, 916 (7th Cir. 2012).2 See also , United States v. Morton Salt Co. , 338 U.S. 632, 653, 70 S.Ct. 357, 94 L.Ed. 401 (1950) ; Mitze v. Colvin , 782 F.3d 879, 882 (7th Cir. 2015) ; O'Bannon v. Nat'l Collegiate Athletic Ass'n , 802 F.3d 1049, 1068 (9th Cir. 2015) ("The NCAA also asserts before us that it has no intent to license its intellectual property for use in video games in the future, but we place no weight on that assertion. Statements in... briefs are not evidence."). But more on this later. See infra 943, and cases cited infra at 946-47.

In response to questions at oral argument, counsel for PPG said that Ms. Foulkes was one of 25 in-house lawyers, and he acknowledged that she was not a chemist and had no chemical, scientific or other specialized scientific training. It was conceded that she was not a patent or trademark lawyer, and would have to be taught about the Trade Secret in this case "so she could be helpful." When asked specifically what Ms. Foulkes was "going to do for you," I was told her participation would be "a matter of efficiency" and that "somebody like her would be helpful," although how she would was never explained or immediately apparent since but for learning the specifics of the Plaintiff's claimed trade secret, she was free to participate in the case.

Each side cites cases that explore and analyze the present problem, including two from this court. See Federal Trade Commission v. Advocate Health Care Network , 162 F.Supp.3d 666, 668 (N.D.Ill. 2016) ; Autotech Technologies Ltd. Partnership v. Automationdirect.com, Inc., 237 F.R.D. 405 (N.D.Ill. 2006). See also United States v. Aetna Inc. , 2016 WL 8738420 (D.D.C. 2016) (discussing, inter alia , Federal Trade Commission v. Advocate Health Care , supra ). Although there is judicial agreement on the general principles applicable to cases like this, courts not surprisingly have arrived at different results. It could hardly be otherwise, since "[w]hether an unacceptable opportunity for inadvertent disclosure exists...must be determined...by the facts on a counsel-by-counsel basis...." Federal Trade Commission v. Advocate Health Care , 162 F.Supp.3d at 668. Accord, United States v. Aetna Inc. , 2016 WL 8738420, at *5 (D.D.C. 2016) ; ST Sales Tech Holdings, LLC v. Daimler Chrysler Co., LLC , 2008 WL 5634214 (E.D.Tex. 2008) ; Highway Equip. Co. v. Cives Corp. , 2007 WL 1612225, at *3 (N.D. Iowa 2007). See also In re Deutsche Bank Tr. Co. Americas , 605 F.3d 1373, 1378 (Fed. Cir. 2010).

The court's explication in United States Steel Corporation on the problem of inadvertent *940disclosure has yet to be improved on:

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Bluebook (online)
296 F. Supp. 3d 936, Counsel Stack Legal Research, https://law.counselstack.com/opinion/silversun-indus-inc-v-ppg-indus-inc-illinoised-2017.