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Enviropak Corporation v. Zenfinity Capital, LLC

United States District Court, E.D. Missouri, Eastern Division

September 22, 2014

ENVIROPAK CORPORATION, Plaintiff,
v.
ZENFINITY CAPITAL, LLC, Defendant.

MEMORANDUM AND ORDER

E. RICHARD WEBBER, Senior District Judge.

This matter comes before the court on "Plaintiff's Motion To Quash Subpoenas, Or, In The Alternative, For Protective Order" [ECF No. 18].

I. BACKGROUND

This lawsuit arises out of negotiations between Defendant Zenfinity Capital, LLC, and Plaintiff EnviroPAK Corporation, a manufacturer of protective molded pulp packaging. Plaintiff alleges it was contacted by Defendant, in May 2013, regarding a proposal to purchase Plaintiff. Plaintiff contends, to aid in the negotiation process, the parties entered into a "Mutual Confidentiality Agreement, " which prohibited Defendant's disclosure and use of "Confidential Information, " including customer information and proprietary information. The Mutual Confidentiality Agreement dictated neither party would interfere with the employment relationships of the other party's employees. Plaintiff states it rejected Defendant's ensuing purchase offer in July 2013.

In April 2014, Plaintiff initiated this lawsuit by filing its "Complaint" [ECF No. 1]. The Complaint asserts two breach of contract claims (Counts I and II), a claim for tortious interference with a business relationship (Count III), and a violation of the Missouri Uniform Trade Secrets Act for misappropriation of trade secrets (Count IV). Specifically, Plaintiff alleges Defendant violated the Mutual Confidentiality Agreement by hiring Plaintiff's then-Vice President of Manufacturing, Rodney Heenan, who was previously bound by a "Confidentiality, Non-Disclosure, and Non-Compete Agreement" with Plaintiff. Plaintiff also alleges Heenan has disclosed, and continues to disclose, confidential information to Defendant, including trade secrets and customer information.

On May 22, 2014, Defendant submitted to Plaintiff its First set of Interrogatories and First Requests for Production of Documents [ See ECF No. 19 at 4]. On July 10, 2014, Defendant served two subpoenas for the production of documents: one to Plaintiff's bank, Bremen Bank, and another to Plaintiff's customer, Stephen Gould Corporation [ECF No. 19-1 and 19-2]. The parties agree the subpoena served upon Stephen Gould Corporation is now moot, because Defendant has agreed to withdraw it without prejudice. The subpoena served upon Bremen Bank, however, remains at issue, and is the subject of this Motion. Exhibit A to this subpoena makes the following demand:

Produce any and all documents, records, and things regarding EnviroPAK Corporation... since January 1, 2011, including, but not limited to, the following:
1.... Among other things, the term "document" refers to and includes the final form and all drafts and revisions of any type of written or graphic matter, original or reproduced, and all copies thereof which are different in any way from the original, regardless of whether designated "confidential, " "privileged, " or otherwise restricted. Without limiting the generality of the foregoing, the term "document" includes books, papers, letters, telegrams, memoranda, communications, minutes, notes, E-mail, electronic mail, voice mail, electronic bulletin board postings, schedules, tabulations, vouchers, accounts, statements, affidavits, reports, abstracts, agreements, contracts, diaries, calendars, plans, specifications, drawings, sketches, photostats, photographs, charts, graphs and other similar objects, and any kind of transcript, transcription or recording of any conversation, discussion or oral presentation of any kind, and any information stored on, and reproducible in documentary form from a computer or other electronic, magnetic, optical or laser based information storage device, including but not limited to floppy disks, hard disks, tapes, DVD/CD, UBS drives, hand-held computer devices, or blackberry devices and any backups thereof.
2. Any and all account applications;
3. Any and all credit applications;
4. Any and all loan applications;
5. Any other document in your possession regarding or relating to EnviroPAK Corporation, including, but not limited to, any and all electronic or other communications sent to or received from EnviroPAK Corporation;
6. Any and all financial statements provided by EnviroPAK Corporation to secure financing or credit;
7. Any and all financial projections;
8. Any and all cash flow ...

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