Wolff v. Tomahawk Manufacturing

CourtDistrict Court, D. Oregon
DecidedJuly 24, 2024
Docket3:21-cv-00880
StatusUnknown

This text of Wolff v. Tomahawk Manufacturing (Wolff v. Tomahawk Manufacturing) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wolff v. Tomahawk Manufacturing, (D. Or. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF OREGON

JAMES B. WOLFF, Case No. 3:21-cv-880-SI

Plaintiff, OPINION AND ORDER

v.

TOMAHAWK MANUFACTURING,

Defendant.

Michael J. Morris and Richard B. Myers, BENNETT HARTMAN LLP, 210 SW Morrison St., Suite 500, Portland, OR 97204. Of Attorneys for Plaintiff James B. Wolff.

David W. Silke and Robert Lowery Gillette, II, GORDON REES SCULLY MANSUKHANI LLP, 701 Fifth Avenue, Suite 2100, Seattle, WA 98104; Ashleigh A. Stochel, KILPATRICK TOWNSEND & STOCKTON LLP, 175 W. Jackson Blvd., Suite 950, Chicago, IL 60604; Aaron T. Olejniczak, ANDRUS INTELLECTUAL PROPERTY LAW, LLP, 790 N Water Street, Suite 2200, Milwaukee, WI 53202; Steven L. Levitt and Trevor M. Gomberg, LEVITT LLP, 129 Front Street, Mineola, New York 11501. Of Attorneys for Defendant Tomahawk Manufacturing.

Michael H. Simon, District Judge.

Plaintiff James B. Wolff (Wolff) sues his former employer, Defendant Tomahawk Manufacturing (Tomahawk). Wolff asserts a breach of contract claim against Tomahawk, alleging that Tomahawk breached a non-disclosure agreement (NDA) between the parties by disclosing Wolff’s confidential information. Wolff also brings three whistleblower retaliation claims under Oregon Revised Statutes (ORS) §§ 654.062, 659A.199, and 659.030A(1)(f). Additionally, Wolff alleges disability discrimination in violation of ORS § 659A.112. Finally, Wolff brings an Oregon common-law claim for wrongful discharge. Tomahawk asserts counterclaims against Wolff, alleging breach of the implied contractual duty of good faith and fair dealing and breach of an employee’s duty of loyalty. Tomahawk contends that Wolff disclosed to third parties valuable and confidential information owned by Tomahawk or

Tomahawk’s affiliated company Formtec, LLC (Formtec). Pending before the Court are cross-motions for summary judgment on Plaintiff’s breach of contract claim and Tomahawk’s counterclaims. For the reasons discussed below, the Court grants in part Wolff’s motion against Tomahawk’s counterclaims, denies Wolff’s motion on his contract claim, grants in part Tomahawk’s motion against Wolff’s contract claim, and denies Tomahawk’s motion on its counterclaims.1 STANDARDS A party is entitled to summary judgment if the “movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). The moving party has the burden of establishing the absence of a genuine

dispute of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986). The court must view the evidence in the light most favorable to the non-movant and draw all reasonable inferences in the non-movant’s favor. Clicks Billiards, Inc. v. Sixshooters, Inc., 251 F.3d 1252, 1257 (9th Cir. 2001). Although “[c]redibility determinations, the weighing of the evidence, and the drawing of legitimate inferences from the facts are jury functions, not those of a judge . . . ruling on a motion for summary judgment,” the “mere existence of a scintilla of evidence in support of the plaintiff’s position [is] insufficient . . . .” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 252,

1 Notwithstanding Tomahawk’s request for oral argument, the Court does not believe that oral argument would help resolve the pending motion. See LR 7-1(d)(1). 255 (1986). “Where the record taken as a whole could not lead a rational trier of fact to find for the non-moving party, there is no genuine issue for trial.” Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587 (1986) (citation and quotation marks omitted). “When cross-motions for summary judgment are at issue, [courts] evaluate ‘each motion separately, giving the nonmoving party in each instance the benefit of all reasonable

inferences.’” Zabriskie v. Fed. Nat’l Mortg. Ass’n, 940 F.3d 1022, 1026 (9th Cir. 2019) (quoting ACLU of Nev. v. City of Las Vegas, 466 F.3d 784, 790-91 (9th Cir. 2006)); see also Pintos v. Pac. Creditors Ass’n, 605 F.3d 665, 674 (9th Cir. 2010) (“Cross-motions for summary judgment are evaluated separately under [the] same standard.”). In evaluating the motions, “the court must consider each party’s evidence, regardless under which motion the evidence is offered.” Las Vegas Sands, LLC v. Nehme, 632 F.3d 526, 532 (9th Cir. 2011). “Where the non-moving party bears the burden of proof at trial, the moving party need only prove that there is an absence of evidence to support the non-moving party’s case.” In re Oracle Corp. Sec. Litig., 627 F.3d 376, 387 (9th Cir. 2010). Thereafter, the non-moving party bears the burden of designating “specific

facts demonstrating the existence of genuine issues for trial.” Id. “This burden is not a light one.” Id. The Supreme Court has directed that in such a situation, the non-moving party must do more than raise a “metaphysical doubt” as to the material facts at issue. Matsushita, 475 U.S. at 586. DISCUSSION A. Issue Preclusion Several of Tomahawk’s arguments in the pending motions relate to Tomahawk’s assertion that issue preclusion (formerly known as “collateral estoppel”) should apply to some determinations from the arbitration that previously occurred between Formtec and Wolff’s affiliated entity, Spherical IP, LLC (Spherical). On August 29, 2023, the Court denied Tomahawk’s motion for summary judgment against Wolff’s breach of contract claim based on claim preclusion (formerly known as “res judicata”), finding that the arbitrators did not have jurisdiction over Wolff’s contract claim. See Wolff v. Tomahawk Mfg., 689 F. Supp. 3d 923, 941- 42 (D. Or. 2023). That decision, however, did not directly address issue preclusion. Now, Tomahawk first argues that Wolff stipulated in the pending case that the arbitration award is final and binding on Wolff and thus he cannot now dispute the arbitrators’ conclusions.

The Court rejects Tomahawk’s argument. On May 19, 2023, Wolff’s counsel simply stipulated that the interim award by the arbitrators filed with the Court on September 16, 2022, “is now final and binding.” ECF 134. Wolff did not stipulate that the award is final and binding against him personally. Next, Tomahawk argues that issue preclusion applies under Wisconsin law. Generally, Wisconsin law applies the principles of issue and claim preclusion to arbitration awards. See Manu-Tronics, Inc. v. Effective Mgmt. Sys., Inc., 163 Wis. 2d 304, 311 (Wis. Ct. App. 1991) (“Essential to arbitration remaining useful is the elementary principle that the doctrines of res judicata and collateral estoppel are applicable to arbitration awards.”). The reason for applying

these doctrines to arbitration awards, however, is because “‘[p]arties who contract for arbitration are entitled to an arbitration award without the added expense of having to relitigate the issue in court.” Franke v. Franke, 268 Wis. 2d 360, 413-14 (Wis. 2004) (Prosser, J., dissenting) (quoting Lukowski v. Dankert, 178 Wis. 2d 110, 113 (Wis. Ct. App. 1993)).

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Wolff v. Tomahawk Manufacturing, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wolff-v-tomahawk-manufacturing-ord-2024.