Allied Erecting & Dismantling Co. v. Genesis Equipment & Manufacturing, Inc.
511 F. App'x 398
6th Cir.2013Background
- Allied sues Genesis and Mark Ramun for misappropriation of trade secrets under OUTSA; jury awards $3,046,800 in unjust enrichment but no lost profits and no punitive damages.
- Ramun left Allied in 2002, took approx. 15,000 Allied documents, then worked for Genesis and helped develop the LXP/Versi-Pro with alleged copied elements.
- Genesis earned about $14 million gross from LXPs.
- Allied asserted its trade secrets included the Allied MT features (GATOR 34, one-piece extended shaft, shrink fit, roller-thrust bearings) and related business plan; Genesis argued those elements were public or not protectable.
- District court instructed on lost profits requiring reasonable certainty and allowed evidence of alternative, non-infringing products; Allied urged broader causation for lost profits but district court structured the proof.
- The Sixth Circuit overall reversed the district court’s vacatur of the unjust-enrichment award and affirmed all other holdings, including denial of permanent injunction, punitive damages, and other issues.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did the district court err in vacating unjust-enrichment damages? | Allied argues damages were proven with certainty via Genesis profits. | Genesis argues no sufficient link to Allied loss; profits projection too attenuated. | No error; causation shown; damages reinstated. |
| Were lost-profits instructions and evidence proper? | Allied contends lost profits may be shown from misappropriation-caused loss. | Genesis contends need for loss proof; alternative products allowed. | District court did not err; sufficient certainty and linking evidence supported loss. |
| Should Allied receive a permanent injunction based on misappropriation? | Jury finding supports injunction. | Irreparable harm not shown; adequate remedy at law. | Affirmed denial of permanent injunction. |
| Was there plain error requiring a new trial on punitive damages? | Ramun included in punitive-damages instructions; objection preserved. | No proper objection; Ramun excluded from instruction. | Waived; no plain error; no new trial on punitive damages. |
| Did the district court err on spoliation and related evidentiary rulings? | Evidence destruction should support adverse-inference; Ramun’s spoliation should affect verdict. | No actual spoliation; no adverse inference warranted. | District court did not abuse discretion; no new trial. |
Key Cases Cited
- Barzingus v. Wilheim, 306 F.3d 17 (10th Cir. 2010) (motion to compel arbitration standard similar to summary judgment standard)
- Jones v. Federated Fin. Reserve Corp., 144 F.3d 961 (6th Cir. 1998) (standard for reviewing jury instructions and evidentiary rulings)
- Noble v. Brinker Int’l, Inc., 391 F.3d 715 (6th Cir. 2004) (proper consideration of damages and testimony in trial)
