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Faiveley Transp. USA, Inc. v. Wabtec Corp.

United States District Court for the Southern District of New York

November 29, 2010, Decided; November 29, 2010, Filed

10 Civ. 4062 (JSR)

Opinion

 [*214]  JED S. RAKOFF, U.S.D.J.

Plaintiffs Faiveley Transport USA, Inc., Faiveley Transport Nordic AB, Faiveley Transport Amiens S.A.S., and Ellcon National, Inc. (collectively the "Faiveley plaintiffs") bring this action against defendant Wabtec Corporation ("Wabtec") asserting various claims based on Wabtec's alleged misappropriation of certain trade secrets from an entity affiliated with plaintiffs, Faiveley Transport Malmö AB ("Malmö"). On June 25, 2010, Wabtec moved to dismiss the plaintiffs' amended complaint pursuant to Federal Rules of Civil Procedure 12(b)(6) and 19. The  [**2] Court received full briefing on these motions, and following oral argument on August 18, 2010, granted Wabtec's application to submit a short letter setting forth additional authority in support of their motions and permitted plaintiffs to submit a short letter in response thereto. After careful consideration of the parties' submissions, the Court, by Order dated August 30, 2010, denied Wabtec's motions in their entirety. This Opinion provides the reasons for that ruling.

The instant action traces back to earlier litigation between Malmö and Wabtec. As part of that litigation, this Court denied Malmö's petition for a preliminary injunction prohibiting Wabtec from undertaking  [*215]  various activities pending the resolution of Malmö and Wabtec's dispute before an arbitral tribunal of the International Chamber of Commerce (the "Tribunal") located in Sweden, See In re Faiveley Transport Malmo AB, 2009 U.S. Dist. LEXIS 97283, 2009 WL 3270854 (S.D.N.Y. Oct. 7, 2009). On December 21, 2009, the Tribunal entered an award in Malmö's favor, ordering both monetary relief and injunctive remedies. Amend. Compl. ("Compl.") ¶¶ 32-44; see Winters Decl. 6/25/2010, Ex. 1 ("Award"). The Tribunal found, among other things, that Wabtec had  [**3] misappropriated Malmö's trade secrets and that its process of reverse engineering those trade secrets was tainted. Compl. ¶¶ 38-39. Malmo moved for confirmation of the Tribunal's award, and following briefing, this Court confirmed the award. See In re Faiveley Transport Malmo AB. No. 58, 08 Civ. 3330 (S.D.N.Y. May 10, 2010).

During the arbitration between Malmo and Wabtec, the parties disputed whether Malmo should be able to assert claims and recover damages on behalf of the Faiveley plaintiffs. See Award ¶ 552. The Tribunal concluded that, as the sole claimant in the arbitration, Malmo could not collect damages based on injuries suffered by other Faiveley affiliates. Id. ¶¶ 881-82. Though the Tribunal awarded damages to Malmo of approximately $3.9 million, it noted that the entities most harmed by Wabtec's misappropriation of Malmö's trade secrets were the Faiveley plaintiffs, specifically Faiveley USA. See id. ¶ 883.

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758 F. Supp. 2d 211 *; 2010 U.S. Dist. LEXIS 125415 **

FAIVELEY TRANSPORT USA, INC., FAIVELEY TRANSPORT NORDIC AB, FAIVELEY TRANSPORT AMIENS S.A.S, and ELLCON NATIONAL, INC., Plaintiffs, -v- WABTEC CORPORATION, Defendant.

Subsequent History: Summary judgment granted, in part, summary judgment denied, in part by, Summary judgment denied by Faiveley Transp. USA, Inc. v. Wabtec Corp., 2011 U.S. Dist. LEXIS 52945 (S.D.N.Y., May 12, 2011)

Prior History: In re Faiveley Transp. Malmo AB, 2009 U.S. Dist. LEXIS 97283 (S.D.N.Y., Oct. 6, 2009)

CORE TERMS

Tribunal, plaintiffs', trade secret, misappropriation, damages, arbitration, rights, Products, unfair competition, motion to dismiss, res judicata, entities, alleges, tortious interference, manufacture, business relationship, res judicata effect, asserting, license, parties

Civil Procedure, Responses, Defenses, Demurrers & Objections, Motions to Dismiss, Waiver & Preservation of Defenses, Judgments, Preclusion of Judgments, Res Judicata, Estoppel, Judicial Estoppel, Joinder of Parties, Compulsory Joinder, Necessary Parties, Judicial Officers, Judges, Discretionary Powers, Justiciability, Standing, General Overview, Trade Secrets Law, Misappropriation Actions, Elements of Misappropriation, Existence & Ownership, Personal Stake, Unfair Competition, Ownership Rights, Torts, Business Relationships, Intentional Interference, Elements, Prospective Advantage