Synthes, Inc. v. Emerge Medical, Inc.

25 F. Supp. 3d 617, 2014 WL 2579286
CourtDistrict Court, E.D. Pennsylvania
DecidedJune 5, 2014
DocketCivil Action No. 11-1566
StatusPublished
Cited by56 cases

This text of 25 F. Supp. 3d 617 (Synthes, Inc. v. Emerge Medical, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Synthes, Inc. v. Emerge Medical, Inc., 25 F. Supp. 3d 617, 2014 WL 2579286 (E.D. Pa. 2014).

Opinion

MEMORANDUM

BUCKWALTER, District Judge.

TABLE OF CONTENTS FOR CROSS-MOTIONS FOR SUMMARY JUDGMENT TO LIABILITY

I.STATEMENT OF FACTS.

A. Persons Relevant to the Suit.

1. The Parties.

2. Other Relevant Individuals.

B. Background of the Key Players’ Employment With Synthes

1. Defendant Marotta’s Employment With Synthes.

2. Defendant Brown’s Employment With Synthes.

3. Powell’s Employment With Synthes.

4. Trafka’s Employment with Synthes and Magnum Tool.

C. Written Obligations of the Parties and Other Individuals ..

1. Synthes Written Obligations..

a. Contractual Obligations.

b. Employment Policies and Obligations.

2. Emerge’s Written Contracts and Policies.

3. Vendors’ Written Contractual Obligations to Synthes .

4. SIMS and Customers’ Written Contractual Obligations to Synthes

D. The Formation of Emerge Prior to April 15, 2010.

1. Brief Background of Emerge.

2. Detailed Timeline of Emerge-Related Activities Prior to April 15, 2010.

3. Emerge’s Business Plans and Investor Materials (Pre-April 2010)

a. The Private Placement Memorandum.

b. Investor Presentations.

c. Additional Statements Regarding Emerge’s Business Model

4. of Investors and

5. Early Design and Development of Emerge Product.

E. Use of Products and Information.

[629]*6291. Acquisition and Use of Synthes Product. 05 CR CR

2. Acquisition, Use, and Disclosure of Synthes’s Confidential and Proprietary Information. 05 CR CR

a. Information Related to Synthes’s Manufacturing Costs _ 05 CR CR

b. Information Related to Synthes’ External Fixation and LCP Products. 05 CR 05

c. Information Related to Synthes’s Critical Features, Dimensions, and Tolerances. 05 CR 05

d. Information Related to Synthes’s Engineering Specifications 05 CR -3

e. Information Related to Synthes’s Cortical and Cancellous Screws. .657

f. Information Related to Synthes’s Usage Data in Emerge’s Early Accounts. 00 LO to

g. Information Related to Synthes’s Cannulated Screw Comparison Chart. 00 lO to

h. Synthes Documents Marotta Emailed to His Personal Email Address. 00 LO CO

i. Marotta’s & Powell’s Retention of Synthes’s Emails. 05 iO co

j. Information Related to Synthes’s Strategic Business

Obtains FDA Clearance. lO CO

Emerge’s Pilot Customers.. CO CO

1. Banner Health. CO CO

2. AOSH/USPI. CO CO

3. Catholic Healthcare West. CO co

4. System-Wide Sales and Early Targets. CO CO

Emerge’s Sales Process, Strategy, Implementation, and Commingling W 03 to co

I. Cardinal Health. "ÑP CO co

J. 'Procedural History. lO CO co

STANDARD OF REVIEW . II. LO CO co

DISCUSSION.. III. co to

A. Claim Against Marotta for Breach of Fiduciary Duty (Count I) co CO

1. Defendant’s Motion for Partial Summary Judgment on Breach of Fiduciary Duty.'. 00 CO CO

2. Plaintiffs’ Motion for Summary Judgment on Breach of Fiduciary Duty. 05 o

B. Claim of Aiding and Abetting Breach of Fiduciary Duty Against Emerge. 05 £

C. Claim Against Marotta for Breach of Contract Under the Non-competition and Non-Disclosure Agreements (Count II). 3 00

1. The Assignment Provision of the Non-Disclosure Agreement. 3 00

2. The Non-Competition and Non-Solicitation Provisions of the RM NCA. a. Breach of the Non-Competition Provision. 05 05 00 00 ÜUJ5.

b. Breach of the Non-Solicitation of Customers Provision... 05 00 CD

c. Breach of the Non-Solicitation of Employees Provision .. 05 co M

3. Sales Consultant Non-Competition Provision. 05 to CO

4. Return of PropertyFrovision and Confidentiality and Non-

Disclosure Provisions in the RM NCA and NDA. 05 CO CO

a. Small Fragment Set. 05 CO CO

b. Synthes Product in Marotta’s Garage. —d O ) — I

c. Synthes Emails. -vj O co

D. Misappropriation... -^3 O iffe

1. Whether the Items at Issue Constituted Trade Secrets. O CR

a. Synthes Information Regarding Manufacturing Costs and

Usage Data.•_ 705

[630]*630b. Product Design Information.707

2. Whether Emerge Misappropriated Synthes’s Trade Secrets.710

a. Information Regarding Manufacturing Costs and Usage Data.710

b. Synthes Product Drawings and Information Related to External Fixation Products .712

c. Synthes Product Drawings and Information Related to Critical Features, Dimensions, and Tolerances for Screws Emerge Developed and Screws Emerge Identified as Additional Product Offerings.712

d. Synthes Engineering Specifications and Information Related to Products Emerge Designed and Identified as Additional Product Offerings.713

e. Drawings and Information Related to Synthes Cortical and Cancellous Screws and Product Emerge Identified as • Additional Product Offerings.■.714

f. Strategic Business Planning Information Related to Companies Affiliated with Prospective Emerge Investors and Advisors.715

3. Conclusion as to Misappropriation .715

False Advertising Under the Lanham Act.715 E.

Computer Fraud and Abuse Act.718 F.

Trespass to Chattels.721 G.

Fraud.•.723

Tortious Interference With Contract.727 I.

1. Tortious Interference with Marotta’s Contracts With Synthes.727

a. Whether Emerge Had Knowledge of Marotta’s Contractual Agreements with Synthes.728

b. Whether Emerge Did Anything to Induce Marotta to Breach Either His NDA, His RM NCA, or His SC NCA With Synthes .,.729

2. Tortious Interference with Powell’s Non-Compete Agreement With

3. Tortious Interference With Brown’s Agreements With Synthes “VI CO co

4. Tortious Interference With Synthes’s Contractual Relationships

With Any of Its Customers or Vendors. CO

a. Tortious Interference With Vendors. CO ^

b. Tortious Interference with Customers. CO oi

5. Marotta’s Tortious Interference With Synthes’s Contractual Relations With Other Synthes Employees. CO or

Civil Conspiracy . *“■3 to cn

IV. CONCLUSION. .737

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25 F. Supp. 3d 617, 2014 WL 2579286, Counsel Stack Legal Research, https://law.counselstack.com/opinion/synthes-inc-v-emerge-medical-inc-paed-2014.