The judge in the National Fish and Seafood trade secrets case said that Red Chamber could be added as a defendant in the case and lifted a restraining order preventing Kathleen Scanlon from working for Tampa Bay Fisheries.
Tampa Bay had argued that Red Chamber, its parent company, should not be added as a defendant in the case, in which NFS accuses former employee Scanlon, along with Tampa Bay Fisheries, its CEO Robert Paterson, and other Tampa Bay executives of stealing information on its proprietary Matlaw’s clam production process.
Red Chamber entered into a confidentiality agreement with Gloucester, Massachusetts-based NFS in October 2017 “in relation to Red Chamber’s interest in evaluating NFS’ business," according to documents filed in the ongoing litigation between NFS and Red Chamber subsidiary Tampa Bay Fisheries, based in Dover, Florida. The two companies are no longer in acquisition discussions, NFS President Todd Provost told SeafoodSource.
Tampa Bay argued that Scanlon’s hiring was not barred under Red Chamber’s and NFS’s contract and “there are no plausible damages stemming from a hire that the agreement itself permits,” Adam Gershenson, an attorney for Tampa Bay, wrote in a recent court filing.
However, Judge Leo T. Sorokin said that NFS has a “plausible claim for breach of contract,” in a 26 October order. “It is at least plausible that there are damages flowing from National Fish’s lack of notice from Red Chamber in June 2018. For example, National Fish might have taken steps to prevent data theft had it received notice from Red Chamber that its subsidiary was taking steps to solicit National Fish’s employee.”
Still, Sorokin lifted his previous injunction against Scanlon, which prevented her from beginning employment with Tampa Bay and viewing or using any NFS documents. The injunction also prohibited Tampa Bay and its executives from using any NFS documents copied by Scanlon.
“National Fish has not offered any additional evidence from the forensic examination that Tampa Bay received National Fish’s files from Scanlon or that it now has any such files in its possession,” Sorokin wrote. “The forensic examination’s failure to locate any such files reduces the likelihood of success of National Fish’s claims against Tampa Bay.”
While Sorokin originally set a trial date in the case for 26 November, that date has now been cancelled. Instead, Sorokin is asking Red Chamber, Tampa Bay, and NFS to suggest a schedule for the litigation. All parties should also state whether they believe the case should be decided by a jury trial.
