JANE TRICHE MILAZZO, District Judge.
Before the Court is Defendant's Motion for Summary Judgment (Doc. 67). For the following reasons, the Motion is GRANTED.
Plaintiff Brand Services LLC alleges that its former employee, James Stanich, stole files containing confidential and proprietary information belonging to Plaintiff when he left the company to work with Defendant Irex Corporation. Plaintiff's Complaint contends that Irex has acquired its trade secrets and has profited off of this information. Plaintiff brings claims under the Louisiana Uniform Trade Secrets Act ("LUTSA") and for the tort of conversion. Defendant has filed the instant Motion for Summary Judgment alleging that Plaintiff cannot show that it has suffered any damages and therefore cannot succeed on its LUTSA claim.
Summary judgment is appropriate "if the pleadings, depositions, answers to interrogatories, and admissions on file, together with affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law."
In determining whether the movant is entitled to summary judgment, the Court views facts in the light most favorable to the non-movant and draws all reasonable inferences in his favor.
Defendant moves for summary judgment on the grounds that Plaintiff cannot show that it has suffered any actual damages or harm from the alleged misappropriation of its trade secrets. Defendant argues that under LUTSA, Plaintiff must show actual loss caused by the misappropriation to succeed on its claim. Plaintiff opposes this Motion, arguing that (1) Defendant has refused to produce relevant documents that would aid it in establishing its damages; (2) Plaintiff can show that Defendant improperly used its trade secrets resulting in unjust enrichment; and (3) Defendant failed to move for dismissal of Brand's state law conversion claim. This Court will consider each argument in turn.
First, Plaintiff contends that Defendant has not produced all of the documents responsive to its requests, and it argues that these documents are necessary for it to quantify its damages. Prior to raising this argument in its opposition but after the discovery deadline in this matter, Plaintiff filed a Motion to Compel Production of Documents and a Motion for Extension of Deadlines.
Next, Defendant alleges that Plaintiff cannot show that it suffered any damages because of the alleged misappropriation of its trade secret. Under LUTSA, "[i]n addition to or in lieu of injunctive relief, a complainant may recover damages for the actual loss caused by misappropriation. A complainant also may recover for the unjust enrichment caused by misappropriation that is not taken into account in computing damages for actual loss."
Plaintiff argues that Defendant has been unjustly enriched by the use of its trade secrets. Specifically, it argues that Stanich copied an application developed by Brand called Schedule D, which aids in invoicing, preparing quotes, and estimating and comparing the cost of projects. Plaintiff alleges that Stanich created a version of Schedule D for use by his new employer, Defendant's subsidiary Vertical Access Solutions ("VAS"). Plaintiff alleges that the Schedule D program developed by Stanich has saved VAS in administrative personnel costs and allows the company to be more efficient and effective. Plaintiff alleges that these facts demonstrate that VAS has been unjustly enriched by the use of its trade secrets. It also alleges that its trade secrets have independent economic value because of the development costs and efficiencies gained from their use.
Defendant rebuts that VAS is not a party to this case and that Defendant cannot be held liable for the unjust enrichment of its subsidiary. It is well-settled that a parent corporation is not liable for the acts of its subsidiary.
Finally, Plaintiff points out that Defendant's Motion for Summary Judgment fails to move for dismissal of its conversion claim. While Defendant provides argument for dismissal of the conversion claim in its Reply Memorandum, "[i]t is the practice of [the Fifth Circuit] and the district courts to refuse to consider arguments raised for the first time in reply briefs."
For the foregoing reasons, Defendant's Motion for Summary Judgment is GRANTED, and Plaintiff's LUTSA claim is DISMISSED WITH PREJUDICE. Only Plaintiff's conversion claim remains.