Uniroyal Goodrich Tire Company v. William L. Hudson

97 F.3d 1452, 1996 U.S. App. LEXIS 38485, 1996 WL 520789
CourtCourt of Appeals for the Sixth Circuit
DecidedSeptember 12, 1996
Docket95-1130
StatusUnpublished
Cited by1 cases

This text of 97 F.3d 1452 (Uniroyal Goodrich Tire Company v. William L. Hudson) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Uniroyal Goodrich Tire Company v. William L. Hudson, 97 F.3d 1452, 1996 U.S. App. LEXIS 38485, 1996 WL 520789 (6th Cir. 1996).

Opinion

97 F.3d 1452

NOTICE: Sixth Circuit Rule 24(c) states that citation of unpublished dispositions is disfavored except for establishing res judicata, estoppel, or the law of the case and requires service of copies of cited unpublished dispositions of the Sixth Circuit.
UNIROYAL GOODRICH TIRE COMPANY, Plaintiff-Appellee,
v.
William L. HUDSON, Defendant-Appellant.

No. 95-1130.

United States Court of Appeals, Sixth Circuit.

Sept. 12, 1996.

Before: MARTIN, JONES, and NELSON, Circuit Judges.

PER CURIAM.

Uniroyal Goodrich Tire Company sued William L. Hudson, a former employee at the company's research and development facilities, to enforce two nondisclosure contracts, and to prevent Hudson from revealing trade secrets and other confidential information, including within the context of litigation. After trial, the company succeeded in obtaining a permanent injunction against Hudson. Hudson now appeals the district court's decision to grant a permanent injunction, its earlier decision holding him in contempt for allegedly violating the district court's preliminary injunction, and its refusal to grant his pretrial motion for summary judgment in the instant action. For the following reasons, we AFFIRM.

William L. Hudson was employed by the Uniroyal Tire Company from October 1966 through August 1986. After Uniroyal merged with B.F. Goodrich Tire Company, Hudson was employed by the new entity, Uniroyal Goodrich Tire Company, through December 1991. On September 29, 1987, and May 1, 1991, Hudson signed contracts containing nondisclosure agreements. The first agreement stated in relevant part:

I will not use, publish or otherwise disclose, except as my Company duties may require, either during or subsequent to my employment, any unpublished information or data confidential to the Company or confidential to others without the Company's prior written consent....

This provision of the 1987 agreement contained no term of duration after which Hudson could disclose confidential company information. The 1991 agreement contained a confidentiality provision which stated that Hudson agreed:

1. To maintain Information in confidence at all times during and after your employment whether acquired before this date or after, or in the course of or arising from your employment with UGTC. You specifically agree that you will not use any Information, independent of your work for UGTC and will not divulge Information to others, either during or after employment by UGTC, except as specifically authorized and required by your duties to UGTC.

This provision also does not limit the duration of Hudson's agreement not to disclose confidential information. However, the 1991 agreement also provided:

6. That you will not, for a period of two (2) years from the date of termination of your employment with UGTC, become associated with or employed by any individual, firm, or corporation, in any capacity involving research in, production of, or use of technology related to the production, design or testing of tires or related products, or any component or element thereof, or in any process or facilities for the production of any product component or element thereof, (i) which is competitive, or is foreseeably competitive, with any product or component thereof which is the subject of previous, current, planned or anticipated UGTC research, design, development, manufacture, or sale activity prior to or at the time of your termination, (ii) with respect to which direct or related product or element thereof, or process of facilities for the production thereof, you possess or have had access to Information, or (iii) with respect to which the loyal and complete fulfillment of the duties of your new employment would inherently call upon you to reveal or to base your judgment upon or otherwise to use any UGTC Information.

During the later part of his employment by Uniroyal Goodrich, Hudson worked as a tire failure analyst. After leaving the company, Hudson joined Kurt Scientific Counselors, Inc. as a litigation tire consultant. After joining Kurt Scientific, Hudson was hired as an expert witness/consultant for the plaintiffs in two companion products liability cases pending against Uniroyal Goodrich in Georgia state court. As part of the Georgia litigation, the state trial judge entered a protective order on April 14, 1992, guarding the alleged trade secret status of information that would be provided by Uniroyal Goodrich during discovery. On August 23, 1993, the Georgia trial judge entered a discovery order requiring the plaintiffs in that case to identify their experts. At that point, Uniroyal Goodrich learned that Hudson would be serving as an expert witness for the Georgia plaintiffs.

On October 14, 1993, Uniroyal Goodrich requested that the Georgia court extend discovery deadlines, and that request was granted. One day later, Uniroyal Goodrich filed the present action in the United States District Court for the Eastern District of Michigan. Uniroyal Goodrich's complaint alleged breaches of contract and common law confidentiality obligations, and sought a temporary restraining order and preliminary injunction.1 The company argued that it would be placed at a severe competitive disadvantage and was in imminent peril of suffering significant competitive losses if its confidentiality agreements with Hudson were not enforced.

On October 19, 1993, after a hearing on Uniroyal Goodrich's motion, the district court issued a temporary restraining order pending a hearing on the preliminary injunction motion. The protective order enjoined Hudson as follows:

A. That Hudson be enjoined from using or disclosing to anyone without the prior express permission of UGTC any information regarding condition codes used by UGTC in documenting adjusted or return tires from the field, and information relating to UGTC adjustment claim forms and adjustment rates in general, as well as adjustment claim forms and adjustment rates relating to the particular model tire and its family of tires involved in the litigation pending against UGTC in Fulton County, Georgia.

B. That Hudson be enjoined from using or disclosing to anyone without the express consent of UGTC any information regarding UGTC employees, company policies, practices, procedures, documents, inspection and adjustment process, and his knowledge about the UGTC Tuscaloosa, Alabama Plant.

C. That Hudson be ordered forthwith to disclose the identities of each and every person to whom he has disclosed any of the information described in Paragraphs A and B above.

D. That Hudson be enjoined from using or disclosing UGTC's trade secrets and confidential and proprietary information to anyone for any purpose without the express consent of UGTC.

On the same date as the hearing on the temporary restraining order, Uniroyal Goodrich filed a motion in the Georgia litigation seeking a protective order with respect to Hudson's involvement in that case. On October 28, 1993, the Georgia trial judge ordered Uniroyal Goodrich to withdraw any objection it had to Hudson appearing as a witness in the Georgia litigation, thereby providing the express consent required by the federal district court's temporary restraining order.2

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
97 F.3d 1452, 1996 U.S. App. LEXIS 38485, 1996 WL 520789, Counsel Stack Legal Research, https://law.counselstack.com/opinion/uniroyal-goodrich-tire-company-v-william-l-hudson-ca6-1996.