Trident Products & Services, LLC v. Canadian Soiless Wholesale, Ltd.

859 F. Supp. 2d 771, 2012 WL 1354449, 2012 U.S. Dist. LEXIS 54717
CourtDistrict Court, E.D. Virginia
DecidedApril 18, 2012
DocketCivil Action No. 3:10-CV-00877
StatusPublished
Cited by21 cases

This text of 859 F. Supp. 2d 771 (Trident Products & Services, LLC v. Canadian Soiless Wholesale, Ltd.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Trident Products & Services, LLC v. Canadian Soiless Wholesale, Ltd., 859 F. Supp. 2d 771, 2012 WL 1354449, 2012 U.S. Dist. LEXIS 54717 (E.D. Va. 2012).

Opinion

MEMORANDUM OPINION

JOHN A. GIBNEY, JR., District Judge.

This matter is before the Court on the defendant’s motion for summary judgment pursuant to Federal Rule of 'Civil Procedure 56(a). The plaintiff, Trident Products and Services, LLC (“Trident”) asserts that the defendant, Canadian Soiless Wholesale, Ltd., d/b/a/ Advanced Nutrients (“Advanced Nutrients”), misused Trident’s formula for a “soil amendment” product— an additive that enhances plant absorption of nutrients. Trident’s complaint, which requests money damages and injunctive relief, sets forth four claims: breach of contract, unjust enrichment, misappropriation of trade secrets, and Lanham Act violations for false advertising. Trident has agreed to dismiss the Lanham Act claim voluntarily.

In one fashion or another, all Trident’s claims hinge on a single factual issue: whether the plaintiffs secret formula for fertilizer has been copied by others, to the plaintiffs detriment. This issue involves the scientific analysis of the contents of Trident’s formula, the contents of competitors’ formulae, and the processes used to create soil additives. Trident must have expert testimony about these matters to prove its case and to enable the fact-finder to make an intelligent decision. Trident has failed to designate an expert in the case, and this failure forces the Court to grant summary judgment for the defendant.

In addition, Trident’s unjust enrichment claim fails as a matter of law because it is barred by the existence of an express contract governing the alleged breach and, furthermore, is preempted under the Virginia Uniform Trade Secrets Act. Consequently, summary judgment for the defendant is appropriate.

I. Statement of Material Facts

Trident is a limited liability company based in Petersburg, Virginia that develops, formulates, markets, and sells soil additives (also known as “soil amendment products”) designed to enhance nutrient intake in plants. A product developed by Trident known as EPG contains five strains of bacteria which enhance plant growth.1 The plaintiff argues that EPG is particularly effective at promoting root growth — so effective, in fact, that the defendant could not find another supplier of a comparable product until 2006, at which point it allegedly misappropriated EPG’s secret formula.

The first EPG sale to Advanced Nutrients took place in 2000, and at that time Advanced Nutrients repackaged and sold EPG under the brand name “VooDoo Juice.”2 Trident knew of and consented [774]*774to this resale. On various occasions, Advanced Nutrients asked to know the composition of EPG due to governmental regulations in certain markets, but Trident declined to disclose this information without a guarantee of confidentiality.3 In December 2005 — more than five years after their first transaction — Trident and Advanced Nutrients signed a nondisclosure agreement.

In February 2006, pursuant to the recent agreement, Trident shared the EPG formula with Advanced Nutrients. In exchange, Advanced Nutrients agreed to be “bound to protect the information received from circumvention, reformulation, reverse engineering or production except as may be formally provided for in agreements executed with [Trident].” (Advanced Nutrients Mem., Ex. 3-A at 1.) The agreement also mandates a limitation on disclosure to “the officers and employees with a specific ‘need to know1 ” and “government officials with a reasonable ‘need to know.’ ” (Id.) The contract also spells out a specific procedure for the disclosure of confidential information to such employees and officials. In all cases, the individual receiving the information was to “sign[ ] a certification in accordance with a form to be provided ... ”, and “[a] copy of the properly executed form [was] to be provided expeditiously to [Trident] via post or fax.” (Id.) The contract did not otherwise forbid Advanced Nutrients from doing business with other parties, provided that it kept EPG’s formula secret.

Advanced Nutrients violated the nondisclosure agreement. Specifically, Advanced Nutrients put the formula on its label. In addition, it revealed the formula to regulatory officials without obtaining the certification of confidentiality.

Advanced Nutrients claims that its relationship with Trident began to deteriorate in 2005 — even before the execution of the nondisclosure agreement. Advanced Nutrients contends that this breakdown arose from a variety of factors, including a shipment of bad material in March 2005, for which it received a purchase credit. While Trident concedes that supply-related concerns did arise, it denies that these issues caused the supplier-customer relationship to fail. In June 2007, Advanced Nutrients stopped ordering from Trident altogether. According to Trident, Advanced Nutrients initially indicated that it would place further orders in spring 2008, but ultimately made no purchases.

Advanced Nutrients now buys soil additive from Research Organization and Manufacture of Bioproducts (“ROMB”), a Bulgarian company. Advanced Nutrients says that it first hired ROMB in mid-2005 to test Advanced Nutrients’ products and compare them to competitors’ products.4 For these tests, Advanced Nutrients sent ROMB a complete line of its products, including Trident’s EPG. Then in early 2006 — after the nondisclosure agreement had been signed and the EPG formula communicated — Advanced Nutrients claims that ROMB compared one of its [775]*775own existing products to VooDoo Juice and discovered that ROMB’s product was significantly more successful at increasing root mass. ROMB’s product also had a longer shelf life and was easier to mix and store.

In 2007, Advanced Nutrients and ROMB reached an agreement by which Advanced Nutrients would purchase PGPB, ROMB’s soil amendment product, and would market that product as a “new and improved” VooDoo Juice. Trident and Advanced Nutrients agree that PGPB has included some or all of the same five strains of bacteria as EPG at various stages of development, but they disagree about whether, on the whole, the products have actually had a high degree of similarity throughout PGPB’s various iterations.5 Even more importantly, the parties tell different stories about how ROMB came to formulate PGPB in the first place. Trident believes that Advanced Nutrients violated the terms of their nondisclosure agreement by disclosing EPG’s formula to ROMB in an effort to reformulate the product. Trident’s proof boils down to a few key points of circumstantial evidence: first, that EPG and PGPB are, in fact, very similar to one another; second, that no one could have come up with a formula like the one for PGPB without first knowing the EPG formula; and, finally, that Advanced Nutrients obtained the formula and ended its relationship with Trident only after the latter disclosed the EPG formula.

Advanced Nutrients maintains it that played no role in ROMB’s research, development, or product manufacturing, except for the submission of samples for testing and comparison in 2005. More specifically, Advanced Nutrients denies selecting the bacteria strains used by ROMB in the development of PGPB, and it disputes the alleged similarity between Trident and ROMB’s respective versions of VooDoo Juice. “Indeed,” writes Advanced Nutrients, “Trident has made no effort to analyze the composition of ROMB’s product in order to compare it to EPG. Instead, the crux of all of Trident’s claims is its speculation ...

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Bluebook (online)
859 F. Supp. 2d 771, 2012 WL 1354449, 2012 U.S. Dist. LEXIS 54717, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trident-products-services-llc-v-canadian-soiless-wholesale-ltd-vaed-2012.