Rockwell Graphic System v. Dev Industries
| Decision Date | 31 January 1990 |
| Docket Number | No. 84 C 6746.,84 C 6746. |
| Citation | 730 F. Supp. 171 |
| Parties | ROCKWELL GRAPHIC SYSTEM, INC., Plaintiff, v. DEV INDUSTRIES, INC., et al., Defendants. |
| Court | U.S. District Court — Northern District of Illinois |
Stephen P. Carponelli, James E. Hussey, Carponelli, Krug & Lerum, Chicago, Ill., for defendants.
William P. Oberhardt, Michael O. Warnecke, Deborah Schavey Ruff, John M. Augustyn, Neuman, Williams, Anderson & Olson, Chicago, Ill., for plaintiff.
The court has reviewed Magistrate Lefkow's very thorough and thoughtful Report and Recommendation in this case. The court has also reviewed de novo those matters in the Magistrate's Report to which Rockwell objects. 28 U.S.C. § 636(b)(1)(C). United States v. Fenet Jaramillo, 891 F.2d 620, 627-28 (7th Cir.1989). Rockwell's objections are without merit. Rockwell's main objection, broadly stated, is that Magistrate Lefkow improperly resolved factual disputes regarding Rockwell's procedures for maintaining the trade secret status of its piece part drawings. Rockwell's contentions have a superficial appeal, because there are many points in the Magistrate's Report where she seems to weigh the testimony of Rockwell's witnesses against that of DEV's. Such a weighing of evidence would of course be inappropriate on a motion for summary judgment.
However, Magistrate Lefkow did not impermissibly weigh conflicting evidence. What Rockwell fails to acknowledge is that Magistrate Lefkow dealt with two different categories of evidence. That is, Rockwell presented evidence tending to show the kind of security precautions it took in general to protect its trade secrets. DEV presented evidence showing that in practice many of Rockwell's piece part drawings were not subject to these precautions. Much of Rockwell's evidence was thus irrelevant to the issue Magistrate Lefkow had to resolve: whether or not drawings like the approximately 100 drawings at issue were kept as trade secrets. When there is ample evidence of dissemination of piece part drawings, and that evidence is uncontradicted, it is no answer for Rockwell to say, well, but look at all the precautions we usually take. Magistrate Lefkow points to essentially uncontradicted evidence that the Southtown Economist possessed, and shared with many others, many piece part drawings. Merrill Printing Company also had scores of such drawings, as did Pathfinder Graphic Systems. It is wishful thinking on Rockwell's part to claim that the evidence regarding South-town was effectively destroyed on cross-examination. It was not. Magistrate Lefkow was similarly — and properly — unimpressed by Rockwell's transparent attempt to create a chimerical issue of fact by submitting the affidavit of Robert B. Gaal to contradict his deposition testimony. Miller v. A.H. Robins Company, Inc., 766 F.2d 1102, 1104 (7th Cir.1985).
There are no genuine issues of material fact to preclude summary judgment. The court adopts Magistrate Lefkow's Report and Recommendation in its entirety, and grants summary judgment in favor of the defendants.
Dec. 7, 1989.
JOAN H. LEFKOW, United States Magistrate:
This matter is pending on the motion of defendants DEV Industries, Inc., Press Machinery Corporation ("PMC") and Robert J. Fleck for partial summary judgment under Rule 56, Federal Rules of Civil Procedure. Plaintiff, Rockwell Graphic Systems, Inc., in its six-count amended complaint, rests federal jurisdiction on allegations that defendants violated provisions of the Racketeer Influenced and Corrupt Organizations Act ("RICO"), 18 U.S.C. §§ 1961-68. Rockwell also asserts five Illinois common law counts, including misappropriation of trade secrets at issue here. The RICO claim charges that defendants engaged in a fraudulent scheme to misappropriate Rockwell's trade secrets and confidential information relating to the design, development, and manufacture of printing presses and replacement press parts. The alleged scheme involves the use of Rockwell's secrets in the manufacture, marketing and sale of competing products. Rockwell alleges that defendant Fleck, as well as defendant Pasquale Peloso (who has since settled), are former employees who had positions of trust and confidence which gave them access to trade secrets and confidential information, that they left their employment at Rockwell to work for DEV and/or PMC and thereafter they surreptitiously obtained Rockwell's trade secrets for DEV and PMC to use for commercial gain. Rockwell alleges that defendants used the mails in furtherance of the scheme to defraud. Defendants' motion to dismiss for failure to state a claim under RICO was denied. Memorandum Opinion and Order of February 12, 1987 (McGarr, J.). Defendants now claim that discovery has demonstrated that Rockwell cannot establish its trade secret allegations because the drawings found in the hands of defendants were not secret in the first place.
Under Rule 56, Fed.R.Civ.P., summary judgment is appropriate when the court is satisfied "that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law." Summary judgment "will not lie if the dispute about a material fact is `genuine,' that is, if the evidence is such that a reasonable jury could return a verdict for the non-moving party." Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986). On summary judgment, a judge's function is not to weigh the evidence to determine the truth of the matter, but to determine whether there is a genuine issue for trial. Id. at 249, 106 S.Ct. at 2511. The burden is on the moving party to point out to the district court that there is an absence of evidence to support the non-moving party's case. Celotex Corporation v. Catrett, 477 U.S. 317, 325, 106 S.Ct. 2548, 2554, 91 L.Ed.2d 265 (1986). Rule 56 does not require the movant, however, to negate the other party's claim. Id. at 323, 106 S.Ct. at 2553. Where the non-moving party will bear the burden of proof at trial, it must respond to the movant's showing by demonstrating a genuine dispute as to a material fact on that issue. The non-moving party cannot rest on bare pleadings but must designate specific facts in depositions, answers to interrogatories, admissions on file, and affidavits which show that there is a genuine issue of fact. Celotex, 477 U.S. at 324, 106 S.Ct. at 2553-54. In assessing whether a genuine issue exists as to any material fact, the court must view the evidence in the light most favorable to the party opposing summary judgment. Technograph Printed Circuits, Ltd. v. Methode Electronics, Inc, 356 F.2d 442, 446-47 (7th Cir.1966). To enter summary judgment, the court must, in effect, conclude that based on the evidence plaintiff intends to rely on at trial, no reasonable jury could return a verdict for the plaintiff. Weit v. Continental Illinois National Bank and Trust Company, 641 F.2d 457, 461 (7th Cir.1981).1
In keeping with this procedure, this report will state the facts in a light favorable to Rockwell. Unless specifically noted, the time period referred to is during 1978-79 when the defendants acquired the alleged trade secrets. It will then assess whether a genuine issue for trial exists.
(MGD is an aspect of Rockwell). Rockwell does not keep an inventory of the location of these drawings, does not attempt to control their duplication and has never sought the return of any of them.
Some of Rockwell's drawings, however, contain dimensions, tolerances, finishes and the like, necessary to enable someone to manufacture specific parts for printing presses. The manufacturing information contained in these drawings is the result of extensive engineering efforts entailing the expenditure of substantial sums of money. Piece part drawings, for example, are drawings of particular parts of a press. These drawings contain all necessary information including dimensions, tolerances, finishes and materials to be used, which would permit someone to manufacture duplicates of Rockwell's parts.
DEV has been in the business of manufacturing spare parts for printing presses since 1978. During 1978-79, DEV acquired approximately 100 piece part drawings from Rockwell through Fleck and Peloso, former employees of Rockwell who became affiliated with DEV. From 1978 through the filing of the amended complaint, DEV used the drawings, knowingly and without Rockwell's knowledge or permission, to duplicate...
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Rockwell Graphic Systems, Inc. v. DEV Industries, Inc.
...of the case, the district judge relinquished jurisdiction over the pendent counts, resulting in a dismissal of the entire case. 730 F.Supp. 171 (N.D.Ill.1990). When we said that Rockwell manufactures both printing presses and replacement parts for its presses--"wear parts" or "piece parts,"......