Altman Stage Lighting Inc. v. Smith

OPINION & ORDER Plaintiff Altman Stage Lighting, Inc. (“Plaintiff”) brings this action against Julie Smith (“Defendant”), alleging violation of the Defend Trade Secrets Act, 18 U.S.C. §1839, and common law claims for breach of the duty of fidelity, fraudulent misrepresentation and concealment, and usurpation of a corporate opportunity. Presently before the Court is Defendant’s motion for judgment on the pleadings (ECF No. 28), and Plaintiff’s motion for leave to amend the Complaint (ECF No. 33.) For the following reasons both motions are GRANTED in part and DENIED in part. BACKGROUND The following facts are taken from Plaintiff’s Proposed Amended Complaint (“PAC”) (ECF No. 34)¹ and are accepted as true and construed in the light most favorable to Plaintiff for purposes of these motions. Plaintiff is a manufacturer and vender of lighting products that specializes in theatre and architectural lighting. (PAC 7.) In 2015, Plaintiff assigned to its employee, Jeffrey Maddox, the primary responsibility of developing a new product, specifically an LED grow light for agricultural products (the “Grow Light”). (Id. 13.) In November of 2015, Plaintiff’s Business Development Manager, Russell Altman, and Head of Engineering, Peter Borchetta, attended the Marijuana Business Conference & Expo to explore the potential market for the Grow Light. (Id. 15.) Plaintiff also had discussions with a cannabis consulting company, Medicine Man Technologies (“Medicine Man”), and anticipated entering into an exclusive arrangement with them to distribute and market the Glow Light. (Id. 16.) In November of 2015, Altman and Borchetta visited Medicine Man to determine its needs for the Grow Light and develop design specifications. (Id. 17.) On February 2, 2016, Plaintiff received specifications from an outside consultant for the Grow Light. (Id.) Plaintiff hired Defendant in April of 2016 as the General Manager of the company. (Id. 10.) As General Manager, Defendant was responsible for the engineering department, and oversaw Maddox as he worked on the development of the Grow Light. (Id.

19; 41.) Defendant instructed Maddox and other engineers to not discuss projects with anyone else, and Maddox only sent her updates on the Grow Light. (Id.