L-3 Communications Corp. v. Jaxon Engineering & Maintenance, Inc.

L-3 Communications Corp. and related entities (collectively, L3) (plaintiffs) provided machines and services designed to test the protective measures found in electronic equipment against damage from electromagnetic pulses. According to L3, its testing machines (pulser machines) and improvements thereon, software programs, customer lists, pricing lists, vendor lists, drawings, and designs of electromagnetic enclosures were trade secrets. L3 sued a number of parties, including its former employee Randall White, Randall’s wife, Joni, other L3 employees, and Jaxon Engineering and Maintenance, Inc. (Jaxon) (collectively, Jaxon parties) (defendants). The omnibus, 87-page operative complaint alleged that in 2007, Randall devised a scheme while still employed at L3 to steal L3’s trade secrets and form a competing business, Jaxon. In May 2008, Joni assisted in forming and incorporating Jaxon. Randall and the named L3 employees then acquired L3’s trade secrets for Jaxon’s use. Jaxon, through Randall, convinced L3’s major customers to support Jaxon. In July 2009, using L3’s trade secrets, Jaxon bid on and won client contracts that might otherwise have been awarded to L3. The complaint described L3’s trade secrets, access by specific Jaxon parties, and how information was misappropriated. The complaint alleged 24 causes of action, including a violation of Colorado’s Uniform Trade Secrets Act, common-law conspiracy, breach of contract, common-law conversion, breach of fiduciary duty, and various other statutory violations, such as violations of the Lanham Act and the Racketeer Influenced and Corrupt Organization Act (RICO). The causes were sometimes alleged against all the Jaxon parties, all the individual Jaxon parties, or only specific Jaxon parties. The Jaxon parties filed a motion to dismiss the complaint.