Yant Testing, Supply & Equipment Co. v. Lakner, Jr.

CourtDistrict Court, D. Nebraska
DecidedFebruary 18, 2020
Docket8:20-cv-00064
StatusUnknown

This text of Yant Testing, Supply & Equipment Co. v. Lakner, Jr. (Yant Testing, Supply & Equipment Co. v. Lakner, Jr.) is published on Counsel Stack Legal Research, covering District Court, D. Nebraska primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Yant Testing, Supply & Equipment Co. v. Lakner, Jr., (D. Neb. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEBRASKA

YANT TESTING, SUPPLY & EQUIPMENT CO., a Nebraska Corporation, 8:20-CV-64 Plaintiff,

vs. TEMPORARY RESTRAINING ORDER

DAVID A. LAKNER, JR., an individual,

Defendant.

This matter came on for hearing on Plaintiff’s Motion for Temporary Restraining Order, Filing 2, on the 14th day of February, 2020. Plaintiff appeared with counsel of record. Defendant was provided notice of the motion and hearing and appeared by counsel. Following the hearing, the parties were afforded the opportunity for additional briefing and to provide the Court with any additional evidence. Having reviewed the pleadings, written arguments, and evidence in the record, the Court concludes Plaintiff’s Motion for Temporary Restraining Order is granted in part and the Motion for Preliminary Injunction is set for further hearing. I. BACKGROUND Plaintiff, Yant Testing, Supply & Equipment Company (“Yant”) is a “petroleum products company that sells, services, and installs equipment for the petroleum industry.” Filing 1 at 2. Yant has fourteen employees and services customers in several different states. Filing 1 at 2. Yant has two office locations in Nebraska, one in Lincoln housing two employees and one in Omaha with twelve employees. Filing 1 at 2. Defendant, David A. Lakner, Jr., worked for Yant for twelve years. Filing 1 at 2. Lakner started at Yant’s Omaha office and was promoted to manage the Lincoln office in 2011. Filing 1 at 2. “Lakner was responsible for overseeing all of the functions of the Lincoln Office, including recruiting and retaining employees; overseeing employees; serving, retaining, soliciting customers for Yant, and developing and maintaining relationships with Yant customers.” Filing 1 at 2. As part of his duties, Lakner had access to Yant’s “customer contact information and preferences; equipment costs, bid information, and pricing information; budgeting data[;] and other financial information,” all of which Yant considered confidential

information and/or trade secrets. Filing 1 at 2-3. Starting in January 2020, Lakner prepared to leave Yant to work for Midwest Petroleum Equipment (“MPE”). Filing 1 at 3-4. MPE is a petroleum equipment company and a business competitor of Yant. Filing 1 at 4. On at least one occasion while still employed by Yant, Lakner wrote on his Yant timecard that he was at a Yant customer’s office; however, GPS records for Lakner’s truck show that he was actually at MPE during that time period. Filing 1 at 4; Filing 19- 1 at 13-15. Additionally, while still employed by Yant, Lakner solicited William Bushhousen to quit his job at Yant and work for MPE. Filing 1 at 4-5; Filing 1-1 at 1-4; Filing 1-2 at 1-2. Bushhousen had been a technician for Yant for thirty-three years and was a highly valued

employee. Filing 1 at 4. Bushhousen left the same day as Lakner to work for MPE. Filing 1 at 4- 5. At 5:00 p.m. on Friday, February 7, 2020, Lakner emailed Jared Baker, Yant’s president, to resign his position, effective immediately. Filing 19-1 at 8. Yant claims that before he resigned, Lakner removed all the physical documents and files that were in his office. Filing 19-1 at 2. Yant’s president, Jared Baker, averred that the files and documents Lakner took contained information that Yant considered confidential, including unfulfilled customer purchase orders, customer lists, and information about Yant customers that had taken time and effort to identify and compile. Filing 1 at 3. Yant contends Lakner also took an external hard drive connected to his computer that contained a backup of the files on his company-owned computer. Filing 1 at 3. Lakner denied taking any physical or electronic files or information from Yant. Filing 15 at 3. However, Yant adduced video surveillance footage and GPS logs from Lakner’s company truck showing that on the day before he resigned, Lakner took a large box from Yant’s Lincoln office, as well as paper files or books on the day of his resignation. Filing 19-1 at 2-3.

At the hearing on this matter, Lakner’s counsel stated that the box contained a part belonging to a customer of Yant and that Lakner was likely delivering that part to the customer before he quit. However, the GPS logs show Lakner did not deliver the box to any customer before his resignation. Filing 19-1 at 11-12. Furthermore, Baker testified that it was not Lakner’s job to deliver parts to customers and that normally, a full appointment for delivery and installation of parts would be made with Yant customers, rather than an after-hours delivery as Lakner’s counsel contended. Filing 19-1 at 4. In response, Lakner stated he delivered the part to Yant’s client the week after he resigned because “[d]ue to the disorganization of the Plaintiff’s business and the skeleton office that they

maintained at the time of our departure, I had serious concerns about whether the Plaintiff would timely deliver this to my customer.” Filing 22 at 2.1 Yant responds that not just the delivery, but the installation of the part in question was a substantial part of its business. Filing 23-1 at 2. Accordingly, Yant claims it lost business by Lakner’s act of taking and installing the part after he resigned from Yant and while working for MPE. Filing 1-2 at 2-3. Lakner left a cellphone and a desktop computer upon his resignation, both of which were owned by Yant. Filing 1 at 3. However, Lakner wiped these devices so that the files, emails,

1 Defendant made this claim in his Supplemental Affidavit, filed at 1:31 PM on February 17, 2020. At the hearing, the Court ordered all evidence relating to the temporary restraining order to be filed no later than noon on February 17. Filing 17. Despite Defendant’s failure to comply with the deadline specified in the Court’s order, the Court will nevertheless consider Defendant’s late-filed affidavit, Filing 22, as well as Plaintiff’s response, Filing 23-1. messages, or other materials were deleted and no longer accessible to Yant. Filing 1 at 3. Lakner did not have authority to delete or make the information on the devices inaccessible to Yant. Filing 1 at 3. Although the information on the devices was backed up through a cloud account, Yant cannot access the information because the backup account was registered under Lakner’s personal email address. Filing 1 at 4. Lakner claims the iPhone contained “primarily personal photographs,

contacts, and videos of my children and family” and not confidential business information. Filing 15 at 2. Bushhousen resigned his employment with Yant on the same day as Lakner. Filing 1 at 4. Bushhousen also returned a Yant-owned cellphone, tablet, and laptop. Filing 1 at 4. However, unlike Lakner’s devices, no files, communications, or other data had been deleted from these devices. Bushhousen’s Yant-owned cellphone showed text message exchanges between Bushhousen and Lakner suggesting that Lakner was recruiting Bushhousen to leave Yant. Filing 1 at 4; Filing 1-1; Filing 1-2. Specifically, on Monday, January 27, 2020, Lakner texted Bushhousen details “recapping” the salary and benefits being offered to Bushhousen. Filing 1-1.

In the text messages, Lakner told Bushhousen, “I have so much respect and admiration for you that I am not going to take no for an answer. You deserve better, we deserve better! Let me know what I have to do to make this this happen!” Filing 1-1 at 4. Lakner also told Bushhousen that he would be able to maintain his technician duties “[w]hen we bring all of our customers with us” to MPE. Filing 1-1 at 4. Lakner and Bushhousen’s departure left Yant with only two employees in its Lincoln office. Filing 1 at 5. Yant also presented evidence that Lakner has been contacting Yant customers to solicit them and spread misinformation about Yant. Filing 1 at 6.

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