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Active Design Polymer LLC v. Walsh

Personal Jurisdiction Lacking on DTSA Claims Over Technology Used in Coatings to Fish Gear

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MEMORANDUM DECISION AND ORDER I. Introduction Plaintiff Active Design Polymer, LLC (ADP) commenced this action against defendants Myles Alex Walsh, ePaint Company, Smartpaint, Inc., Steven W. Fisher, Netminder, LLC, and Capital Resin Corporation on April 14, 2021, alleging violations of the Defend Trade Secrets Act1 (DTSA) and state law. (Compl., Dkt. No. 1.) Now pending are defendants’ motions to dismiss, (Dkt. Nos. 25, 28, 30), which the court converted to motions for summary judgment “insofar as they s[ought] dismissal because plaintiff lack[ed] the capacity to sue,” (Dkt. No. 46), and ADP’s cross-motions to amend the complaint. (Dkt. Nos. 38, 49.) For the reasons that follow, defendants’ motions are granted, ADP’s motions are denied, and the complaint is dismissed. II. Background A. Facts2 Plaintiff ADP is “a domestic limited liability company organized and existing under the laws of the State of New York.” (Compl. 12.) ADP “develop[s] polymer and resin technology to be used in coatings serving the aquaculture market.” (Id. 45.) ADP’s products are used to coat items such as fishing nets, lines and traps, oyster cages, crab and lobster pots, and boat hulls. (Id.

47, 58-59.) ADP’s coatings are used to “prevent unwanted marine growth, to preserve the nets[,] and promote fish health.” (Id. 49.) Terry McKane and James Leonard are both member-mangers of ADP. (Id.

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