Articles Posted in Breach of Contract

Hamilton County, Indiana– The Plaintiffs, DCG Indiana, Inc. d/b/a Dillon Construction Group, filed suit against Cardinal XLIII, LLC (Delaware); Motorsport Real Estate Ventures LLC (Delaware); Studio M Architecture and Planning, LLC (Indiana); Gradex, Inc. (Indiana); and Glenmark Construction Co. Inc. (Indiana) in part, for copyright infringement of works of original authorship.

Andretti-Dillon-300x164According to the complaint, in early 2022, Andretti Global hired the Plaintiff and the Defendants to design and construct a racing facility in Fishers, IN. The parties then entered into a Design-Build Contract, which included financial terms, budgets, building plans, completion dates, etc.  The Plaintiffs also claim that the contract granted Cardinal a limited, irrevocable, and nonexclusive license to use the drawings, specifications, calculations, etc. (Instruments of Service) created by DCG, while also maintaining that DCG was the author and owner of said Instruments of Service, and would, therefore, retain all common law, statutory and other reserved rights, including copyrights.  More importantly, the claim states that the contract specified that should Cardinal not substantially perform its obligations, including payment of any past-due fees to DCG, the copyright license granted to Cardinal would automatically terminate.  (Click to read the cited part of the Design-Build Contract.)

According to the Plaintiff, on March 10, 2023, Cardinal notified DCG that it would be terminating the Design-Build Contract.  At the time the Plaintiff claims Cardinal still owed them $1,011.462.21, which, according to the terms of the Design-Build Contract, meant the copyright license granted to Cardinal should have ceased.  However, the Plaintiff alleges that Cardinal continued to use DCG’s Instruments of Service after the illegal termination of the contract and even after receiving cease-and-desist letters from Plaintiff’s counsel.

MaddenBlogPhoto-300x124Evansville, Indiana – The Plaintiff, MaddenCo, Inc.  (“MaddenCo”) filed suit against former employees, James Reed (“Reed”) and Dru Darby (“Darby”) along with their new employer HG Autotech LLC (“HG Autotech”) for Breach of Contract, Breach of Fiduciary Duties, Tortious Interference, Copyright Infringement, False Advertising, False Representations, False Designations of Origin, Reverse Passing Off and Unfair Competition.

Per Plaintiff’s website, MaddenCo is a privately held family business and has been for over 40 years. They develop and support integrated software systems for tire dealers and truck stop service centers. MaddenCo provides systems for retail, wholesale, commercial and retreading operations for independent tire dealers, and retail and commercial solutions for service centers for truck stops, with full integration to their own accounts payable and general ledger solutions. MaddenCo owns Copyright Registration Number TX0009171151 entitled “The Tire Dealer System” with an effective registration date of August 26, 2022.

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CentralRailroadPhoto-300x203Crowne Point, Indiana – The Plaintiff, Illinois Central Railroad (“IC”) filed suit against Defendant and former employee, Michael Belcher (“Belcher”) for Breach of Contract, Breach of Duty of Loyalty, Civil Conversion, Indiana Uniform Trade Secrets Act, Defend Trade Secrets Act, and Trespass to Chattels.

Per the Plaintiff’s website, IC is headquartered in Chicago, Illinois, and has been in business for 148 years. Its Slogan, “The Main Line of Mid-America,” perfectly describes its unique north-south routing running from Chicago to the Gulf Coast.

According to the complaint, the Defendant, Michael Belcher (“Belcher”) is a resident of Crown Point Indiana.  He was employed as a Senior Manager for IC for 20 years until he was terminated on October 19, 2022. Belcher’s duties included writing software code for IC’s financial data systems that included, but was not limited to, IC’s systems for financial metrics, financial records, and compliance. Belcher served as the key point of contact for financial analysis, performance tracking, and corrective action related to Basic Capital budgets for all levels of Engineering management.  He also participated in IC’s Share Units Plan and was awarded Performance Share Units (“PSUs”).  Each time he was awarded PSUs, he received and accepted an award letter that contained a Confidentiality Clause. This prohibited him from revealing, disclosing or making known any Confidential Information without prior written consent from IC. Belcher also received regular training on the Company’s Code of Business Conduct that requires every employee to safeguard Company assets and intellectual property. The Code of Conduct also contained provisions defining Company Confidential Information, and prohibitions against disclosure.

HonestAbeLogoTerre Haute, Indiana – The Plaintiff, Honest Abe Roofing Franchise, Inc. (“Honest Abe”), is an Indiana Corporation with its principal place of business in Terre Haute, Indiana.  Honest Abe has been installing, repairing, and maintaining residential roofs since 2005.  They have numerous locations in multiple states.

The Defendants, DCH & Associates, LLC, and Honest Abe Roofing of Macon Georgia, LLC, are Georgia Limited Liability Companies. Dameion Harris and Christine Harris are listed as residents of Dacula Georgia and are the sole members of both LLC’s.

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3Chi-Medallion-web-optimized-black-background-300x300Indianapolis, Indiana – The Plaintiff, 3C, LLC d/b/a 3CHI (pronounced “three-chee”) filed suit against Defendant and former employee, Jai Journay (“Journay”) for Misappropriation of Trade Secrets, Violation of Indiana’s Uniform Trade Secrets Act, and Breach of Employment Agreement.

Per the Plaintiff’s website, 3CHI was founded by a biochemist that has focused on cannabinoid research and brining minor cannabinoids to market.  3CHI alleges to have almost single handedly put cannabis into national mainstream acceptance. It started with 3CHI’s first CBN products. CBN was the first mildly psychoactive cannabinoid sold nationally in the USA. Shortly after, they became the first company to create and sell Delta 8 THC.  3CHI is the first company to legally vend THC products as a major sporting event, selling its products at NASCAR races.  They also proclaim to have taken a leading role in working with government leaders and agencies around the world to help educate and create sensible legislation surrounding Delta 8 THC and other minor cannabinoids.

Defendant, Journay was hired on July 10, 2020 for a position in Sales and Education.  During her employment, Journay was promoted to Marketing Manager.  An Employment Agreement that protected 3CHI’s Confidential Information and Trade Secrets was signed by the Defendant on March 7th, 2021.  As the Marketing Manager, Journay had access to nearly all of 3CHI’s Confidential Information and Trade Secrets, including product formulas, recipes, customer lists, customer requirements, consumer data, marketing data and other analytics.

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KilroysLogo-300x300Indianapolis, Indiana – Plaintiff, Elijah Schwartz (“Schwartz”) filed suit against his former Employer and Defendants, Kilroy’s North America LLC, Kilroy’s Sports, LLC, and Kilroy’s on Kirkwood, LLC (“Kilroy’s”) for Violation of the Wage Payment Act, Breach of Contract, Promissory Estoppel, Unjust Enrichment, Fraud, Declaratory Judgment of Copyright Ownership, and Copyright Infringement.

According to the Complaint, Schwartz began working for Kilroy’s as a server and bartender in August of 2021.  He later was offered the position of AV Intern where his duties included services related to Defendants’ social media accounts and digital presence, assistance with their relationship with Barstool Sports, promotion of events, the creation of marketing and advertising content, which included the production, filming, and editing of video and digital content for the Defendants.

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2016-05-26-BlogPhotoCrowne Point, Indiana – The Plaintiff, Orbital Engineering, Inc. (“Orbital”) filed suit against Defendants, DVG Team, Inc. (DVG) and former employee Zachary Topoll (“Topoll”) for Breach of Fiduciary Duty Damages Resulting from Conspiracy, Tortious Interference with Business Relations, Aiding and Abetting Breach of Fiduciary Duty, and Trade Secret Misappropriation.

Per the complaint and their website, Orbital, established in 1969, is a certified veteran owned business, which provides full-service solutions in engineering and design, construction management and QA/QC, safety and asset integrity services.  The company services a broad range of industries, including infrastructure, metals, refinery, chemical, pipeline, terminal, gas processing and storage, and utilities.  Their expertise is in Transmission & Distribution, Midstream and Downstream Oil, Gas and Chemical and Metals.  They have six major offices in Pittsburgh (HQ), Philadelphia, Chicago, Detroit, St. Louis and Houston and various other locations.

DVG, founded in 1999, purports to be a team of professionals with a variety of expertise in areas of public infrastructure planning and construction, private and public utility development, engineering and site design, economic development and real estate development.  They are based in Crown Point, Indiana.

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Peoplelink-LogoSouth Bend, Indiana – Attorneys for Plaintiff, Peoplelink, LLC (“Peoplelink”), a Delaware Corporation, filed suit in the  Northern District of Indiana alleging that Defendant, Kelly Boutell, a former employee of Peoplelink, infringed their rights under the  Federal Defend Trade Secrets Act, 18 U.S.C. § 1832, the Computer Fraud and Abuse Act (CFAA) 18 U.S.C. § 1030 and committed Breach of Contract.

According to the Complaint, Boutell was employed by Peoplelink for over 20 years in various roles such as Certified Sales Trainer, Vice President of Fulfillment, and Senior Regional Vice President. Boutell was one of two Certified Sales Trainers. She conducted two-to-three annual sales training sessions for all of Peoplink business entities and functioned informally as a sales leader for Peoplelink’s entire footprint.

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2021-09-08-ImageIndianapolis, IndianaSports Turf Northwest, LLC (“Sports Turf”), the Plaintiff, was apparently organized in October 2012 to become an authorized dealer for Defendants SA Heinen LLC and GreensGroomer WorldWide, Inc. (collectively “GreensGroomer”). According to the Complaint, GreensGroomer manufactures commercial maintenance equipment for the artificial and natural turf industries along with “the first-ever UVC line of maintenance equipment that disinfects surfaces associated with various sports surfaces.” Sports Turf claims it began conducting business with GreensGroomer in October 2012, but that GreensGroomer’s president, Shawn A. Heinen (“Heinen”) could not find an agreement on file on or about April 23, 2018. After negotiating new contract terms, a new agreement (“Agreement”) was apparently entered into on or about May 18, 2018. Continue reading

Indianapolis, Indiana – Apparently, ABI Attachments, Inc. (“ABI”), the Plaintiff entered into a Product Lines Purchase Agreement with Defendants, Kiser Arena Specialists, Inc., (“KAS”) Robert D. Kiser, Individually and as Trustee of The  Kiser Family Trust, and James Kiser (collectively, the “Defendants”). Under the Agreement, ABI allegedly acquired assets and intellectual property including the trademark “DRAGMASTER®,” U.S. Trademark Registration No. 4,044,235 (the “Mark”), and “Product Lines” including “specifications, shop drawings, records, and intellectual property rights relating to the Product Lines.” ABI claims Defendants have used those documents relating to the Product Lines to market knockoff products. For example, ABI claims the Defendants’ Kiser 1000 Series is substantially similar to the ABI DragMaster as shown below.

ABI-300x212

Further, ABI asserts that Defendants have promoted the “new” products as “redesigned” which indicates the Defendants’ products are based on intellectual property now owned by ABI rather than a new product developed from scratch. According to the Complaint, KAS has used the same background music in some of its promotional videos as ABI: Compare

https://youtu.be/CWPjo2Ogzbc (KAS) with https://youtu.be/9lY2X2UvoL4 (ABI). ABI claims it has attained significant goodwill throughout the United States and the world and that Defendants alleged misleading and false advertisements have caused irreparable damage to ABI’s reputation.

ABI first seeks damages for Defendants’ alleged breach of their obligations under the Product Lines Purchase Agreement. Next, ABI claims Defendants have misappropriated its trade secrets by using the “specifications, shop drawings, blueprints, records and intellectual property rights relating to the Product Lines.” Pursuant to the Lanham Act, 15 U.S.C. §§ 1116 and 1117, ABI is seeking injunctive relief as well as actual and treble damages for willful trademark infringement. ABI is further claiming Defendants’ actions constitute false designation of origin and false advertising in violation of 15 U.S.C. § 1125(a). Finally, ABI is seeking damages for unfair competition, trademark misappropriation, and unjust enrichment under Indiana common law.

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