Sonoco Prods. Co. v. Gü
Decision Date | 08 January 2015 |
Docket Number | C.A. No. 4:12-cv-00790-BHH |
Court | U.S. District Court — District of South Carolina |
Parties | Sonoco Products Company, Plaintiff, v. Levent Güven, Defendant. |
Plaintiff, Sonoco Products Company ("Sonoco"), filed this action against Defendant, Levent Güven ("Güven"), alleging claims for breach of contract, breach of duty of loyalty, and misappropriation of trade secrets. On October 28, 2014, this Court entered an order striking Güven's Answer and entering a default judgment in favor of Sonoco pursuant to Federal Rule of Civil Procedure Rule 37(b)(2)(A) based on Güven's willful failure to obey the Court's discovery orders dated June 18, 2014 and August 19, 2014 (ECF No. 124) (the "Sanctions Order'). A hearing was held on December 17, 2014 for the purpose of determining Sonoco's damages (the "Damages Hearing"). After carefully reviewing and considering the evidence presented at the Damages Hearing, for the reasons set forth below, the Court finds that judgment shall be entered against Güven in the amounts set forth below.
From the date Güven was initially served with the summons and complaint and brought into this matter, Güven was vigorously represented by qualified and able counsel in all proceedings in this lawsuit, including Sonoco's motion for sanctions, up until October 28, 2014, when the Court issued an order granting the motion to withdraw as counsel filed by Güven's counsel of record (ECF No. 124 at 18). Güven expressly consented to his counsel's motion to withdraw as counsel as evidenced by his signedconsent (ECF No. 98-2). 1 Güven's counsel briefed and opposed the motion for sanctions on behalf of Güven and also attended the hearing on Sonoco's motion for sanctions, where counsel for Güven argued on behalf of Güven against the sanctions sought by Sonoco. Güven's counsel also opposed Sonoco's underlying motion to compel discovery through briefs and arguments at the hearing on the motion to compel, and even sought reconsideration of the order compelling Güven to produce the discovery that ultimately led to the motion for sanctions (ECF No. 86). The Court allowed Güven's counsel to withdraw as counsel only after the Court had already decided to grant Sonoco's motion for sanctions. See Transcript of Motion Hearing, Oct. 20, 2014, at pp. 13-15 ( ); ECF No. 124 at 18 ( ).
The Sanctions Order required Sonoco to serve Güven with copies of the Sanctions Order and Sonoco's attorney's fees affidavit (ECF No. 122) by mailing these documents to the address set forth in the Sanctions Order ("Güven's Service Address") (ECF No. 124 at 18). Güven's Service Address was provided to the Court by Güven, represented by Güven to be his address for service of papers, and represented by Güven to be the address where any service in this case would be received and accepted by him. The Certificate of Service of H. Sam Mabry, III (ECF No. 130) establishes that Sonoco mailed these documents to Güven's Service Address. The Court finds that Sonoco has complied with the service requirements set forth in the Sanctions Order.
By Text Order dated October 30, 2014, this Court scheduled the DamagesHearing in this matter for December 17, 2014 (ECF No. 128). The Certificate of Service of H. Sam Mabry, III (ECF No. 130) establishes that Sonoco served Güven with a copy of this Text Order on November 4, 2014, by mailing a copy of the Order to Güven's Service Address (ECF No. 124 at 18). Although not required to do so, Sonoco also served Güven with a Notice of Damages Hearing which accurately and specifically set forth the time, place, location and purpose of the Damages Hearing (Sonoco Damages Hearing Exhibit 1). The written Notice advised Güven of his and/or his counsel's right to appear at the Damages Hearing and participate as permitted by law. The Court finds that service of this notice was valid and sufficient under United States law. See Fed. R. Civ. P. 5(b)(2)(C) ( ); Local Rule 83.I.07, DSC (requiring counsel seeking withdrawal as counsel to provide the Court "with a mailing address" for the client); ECF No. 98-1 at n. 1 (listing Güven's address).2
In addition to mailing the Notice by United States Mail in accordance with United States law, the Notice of Damages Hearing was translated into Turkish and the translated Notice of Damages Hearing served on Güven in Turkey. Sonoco has submitted to the Court the Declaration of Murat Karkin stating that the translated Notice of Damages Hearing was served on Güven in Turkey on November 25, 2014, in accordance with Turkish law and procedure. (Sonoco Damages Hearing Exhibit 2).
The Court finds Güven was provided with more than sufficient notice of the Damages Hearing to satisfy United States law, including due process under the United States Constitution. Güven did not attend the Damages Hearing, nor did anyone attend on his behalf. However, because Güven was clearly provided with notice andopportunity to appear and participate at the Damages Hearing, his failure to attend the hearing does not affect in any way the application of this order or the enforceability of a judgment based on this order under United States law. See, e.g., Davis v. Hutchins, 321 F.3d 641, 645-46 (7th Cir. 2003) ( ); Yusov v. Yusuf, 892 F.2d 784, 787 (9th Cir. 1989) ( ); see also Fosberry v. Coyle Bus. Prods., No. 2:10-cv-00799-RMG-BHH, 2012 U.S. Dist. LEXIS 59616 (D.S.C. April 30, 2012) ( ).
When a default is entered against a defendant, the law is clear that the well-pleaded factual allegations in the complaint are deemed admitted and the court is to accept such factual allegations as true. DIRECTV, Inc. v. Rawlins, 523 F.3d 318, 322 n.2 (4th Cir. 2008) (citing Ryan v. Homecomings Fin. Network, 253 F.3d 778, 780 (4th Cir. 2001)); Mary Kay Inc. v. Ayres, 827 F. Supp.2d 584, 589 (D.S.C. 2011); see also Fosberry v. Coyle Bus. Prods., No. 2:10-cv-00799-RMG-BHH, 2012 U.S. Dist. LEXIS 46061 (D.S.C. March 29, 2012) adopted by, motion granted by, judgment entered by 2012 U.S. Dist. LEXIS 59616 (D.S.C. April 30, 2012). The court must then determine whether the well-pleaded factual allegations in the complaint support the relief sought in the action. Ryan, 253 F.3d at 780; Mary Kay Inc., 827 F. Supp.2d at 590. If liability is established, the court must then determine the appropriate amount of damages. Bankof Camden v. Hooker, No. 8:14-cv-01050-JMC, 2014 U.S. Dist. LEXIS 115017, at **2-3 (D.S.C. Aug. 19, 2014) (citing Ryan, 253 F.3d at 780-81). The Court's analysis will proceed in this manner.
Having found Güven to be in default, the Court accepts Sonoco's well-pleaded factual allegations as true, including the following factual findings that are particularly material to the damages claims:
1. Güven is a Turkish National who holds a United States Permanent Resident Card (informally known as a Green Card), issued by the United States Government, granting him permanent resident status.
2. Güven was employed by Sonoco from June 1, 1998, to April 5, 2010, when Sonoco terminated his employment.
3. Prior to his employment with Sonoco, Güven had no experience or knowledge of the industrial products business.
4. Through Sonoco's management trainee program, Güven spent time in multiple Sonoco plants, both in the United States and in foreign locations, learning the operations and competitive strategies of the Industrial Products Division of Sonoco.
5. Güven successfully completed Sonoco's management trainee program, and he thereafter accepted an expatriate assignment to be employed as the Sales and Marketing manager for a Sonoco subsidiary in Bursa, Turkey ("Sonoco Turkey").
6. Güven was heavily involved in managing Sonoco Turkey's operations, and Sonoco entrusted him with a high level of management autonomy and information.
7. Güven co-managed Sonoco Turkey with Adem Gurada (Gurada), who was a direct employee of Sonoco Turkey. Güven served as the Sales and MarketingManager for Sonoco Turkey, and Gurada served as the Regional Operations Manager. Güven and Gurada managed all aspects of Sonoco Turkey's operations.
8. Güven's duties for Sonoco Turkey gave him access to and knowledge of Sonoco's trade secrets and proprietary information, including manufacturing and sales processes, product and sales formulas, manufacturing and sales strategies, pricing formulas and strategies, highly specialized manufacturing devices and equipment, customer lists, source lists, supplier lists, sales contacts, and business relationships (collectively, the "Protected Information").
9. Sonoco's Protected Information includes trade secrets under the South Carolina Trade Secrets Act, S.C. Code Section 39-8-20(5). Sonoco has made reasonable efforts to maintain the secrecy of its trade secrets.
10. Sonoco Turkey's operations are based in large part on Sonoco's Protected Information, so Güven became intimately familiar with the Protected Information while managing Sonoco Turkey.
11. Prior to beginning work with Sonoco, Güven entered into an Employee Agreement, whereby he promised to protect certain...
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