AI Case Brief
Generate an AI-powered case brief with:
đKey Facts
âïžLegal Issues
đCourt Holding
đĄReasoning
đŻSignificance
Estimated cost: $0.10â$0.50 per brief, depending on opinion length and retries
Full Opinion
THE UNITED STATES DISTRICT COURT DISTRICT OF UTAH DIRTT ENVIRONMENTAL SOLUTIONS, INC. and DIRTT ENVIRONMENTAL MEMORANDUM DECISION AND SOLUTIONS LTD., ORDER DENYING [201] MOTION FOR RELIEF FROM JUDGMENT Plaintiffs, PURSUANT TO FED. R. CIV. PROC. 60(b) v. Case No. 1:19-cv-144 DBB LANCE HENDERSON, KRISTY HENDERSON, and FALK MOUNTAIN District Judge David Barlow STATES, LLC, Defendants. Before the court is Plaintiffsâ Motion for Relief from Judgment Pursuant to Fed. R. Civ. Proc. 60(b) (Motion).1 Having considered the briefing and the relevant law, the court concludes the motion may be resolved without oral argument.2 For the reasons stated herein, the court DENIES the Motion. BACKGROUND In 2003, Mogens Smed and two others founded Plaintiff DIRTT Environmental Solutions, Ltd. (DIRTT, Ltd.).3 DIRTT, Ltd. âis a Canadian company, incorporated in the Province of Alberta and with its headquarters and principal place of business in Calgary, Alberta, Canada.â4 It now is a public company and is listed on the Toronto Stock Exchange.5 1 ECF No. 201, filed September 9, 2021. 2 See DUCivR 7-1(f). 3 Canadian Statement of Claim (Exhibit 1 to Falkbuilt Defendantsâ Motion to Dismiss First Amended Complaint) at ¶¶ 4-5, ECF No. 134-1, filed November 19, 2020. 4 First Amended Complaint at ¶ 2, ECF No. 117, filed October 20, 2020. 5 Statement of Claim at ¶ 10. In addition to founding DIRTT, Ltd., Smed was its CEO for 14 years and then its Executive Chairman until September 2018, when DIRTT, Ltd. terminated his employment.6 DIRTT, Ltd. describes Smed as one of its âdirecting minds.â7 Shortly after his termination, Smed founded Defendant Falkbuilt, Ltd. under the laws of Alberta.8 Falkbuilt, Ltd.âs offices are in Calgary, Alberta.9 Smed is the sole director and/or CEO of Falkbuilt, Ltd. and resides Calgary.10 DIRTT, Ltd. is the head of an international enterprise. It operates in the United States and in other countries through its affiliated âpartnersâ: âDIRTT offers interior construction solutions throughout the United States and Canada, as well as international markets, through a network of independent distribution partners.â11 DIRTT, Ltd. also is the parent12 of DIRTT, Inc., a company incorporated in Colorado, which Plaintiffs originally described as having âits headquarters and principal place of business in Calgary, Alberta, Canada.â13 Later, Plaintiffs dropped the reference to Calgary and said instead that DIRTT, Inc.âs âprincipal places of businessâ were âin Savannah, Georgia and Phoenix, Arizona.â14 Later still, Plaintiffs told a Canadian court that DIRTT, Inc.âs âprincipal offices [are] located in Calgary, Alberta.â15 Plaintiffs allege that Smed âdirectly or indirectlyâ controlled both DIRTT, Ltd. and DIRTT, Inc. as âthe Calgary-based CEO.â16 6 Id. at ¶¶ 16, 25. 7 Id. at ¶ 2. 8 Canadian Amended Amended Amended Statement of Claim (Exhibit 3 to Falkbuilt Defendantâs Opposition to Plaintiffsâ Rule 60(b) Motion) at ¶ 6, ECF No. 207-3, filed September 30, 2021. 9 First Amended Complaint at ¶ 20. 10 Canadian Statement of Claim at ¶ 2, ECF No. 134-1; Canadian Amended Amended Amended Statement of Claim at ¶ 6, ECF No. 207-3; First Amended Complaint at ¶ 150 (describing Smed as the âfounder and CEO of Falkbuiltâ). 11 Canadian Statement of Claim at ¶ 6. 12 First Amended Complaint at ¶ 2. 13 Verified Complaint at ¶ 1, ECF No. 2, filed December 11, 2019. 14 First Amended Complaint at ¶ 1. 15 Canadian Amended Amended Amended Statement of Claim at ¶ 2, ECF No. 207-3. 16 First Amended Complaint at ¶ 21. DIRTT, Ltd. alleges that Smed misappropriated and misused trade secrets, copyrighted material, and other proprietary information from it while he worked for the Alberta company and after he was terminated from it.17 Smed and Falkbuilt, Ltd. also engaged in other alleged misconduct by luring away DIRTT, Ltd. employees and customers and directly competing against DIRTT, Ltd.18 As a result, DIRTT, Ltd. filed suit against Smed and Falkbuilt, Ltd. in Calgary.19 The case alleged that Smed, Falkbuilt, and another individual violated the Canadian Copyright Act, the Alberta Business Corporations Act, their contracts, and Canadian common law by the foregoing and other related actions. The claim seeks an interim and permanent injunction, numerous declaratory judgments, compensatory damages, punitive damages, exemplary damages, costs of the action, interest, and accounting of the defendantsâ revenue and profits. It requests a trial in Calgary, Alberta. The claim says nothing about limiting the conduct challenged, the damages suffered, or the relief sought solely to Canada.20 Seven months later, DIRTT, Inc., the subsidiary of DIRTT, Ltd., filed suit in this court.21 The Complaint states that DIRTT, Inc., which is described as a Colorado company with headquarters and its principal place of business in Calgary, âoperates in Canada, the United States and other jurisdictions around the world.â22 In the Complaint, DIRTT, Inc. does not say that it is a subsidiary of DIRTT, Ltd., that DIRTT, Ltd. already has filed a related suit in Calgary, 17 See Canadian Statement of Claim at ¶¶ 43-44, 47, ECF No. 134-1. 18 Canadian Statement of Claim at ¶ 47. 19 See Canadian Statement of Claim. 20 See generally, Canadian Statement of Claim. 21 Verified Complaint, ECF No. 2. 22 Id. at ¶¶ 1â2. that the trade secrets at issue belong to DIRTT, Ltd., or even mention DIRTT, Ltd. at all.23 The Complaintâs background section starts by stating: Since his difficult departure from DIRTT in September 2018, Mr. Smed and those acting in concert with him, including the newly-formed Falk entities, have engaged in an ongoing attempt to replicate DIRTTâs business, products and business model through improper means, including but not limited to utilizing DIRTT confidential information and trade secrets to identify and approach customers and potential customers, utilizing pricing and margin information to undercut DIRTTâs quotes, and utilizing DIRTTâs patented and trade secret technology to gain an unfair advantage in product offerings.24 The Complaint then goes on to allege further detail about Smedâs additional and related alleged misconduct and discuss Defendants Lance and Kristy Hendersonâs misconduct in misappropriating confidential information, setting up Falk Mountain States to compete with DIRTT, Inc., and contacting âat least one prospective customer of DIRTT.â25 The Complaint also alleges misconduct by various non-parties elsewhere in the United States and Canada.26 Subsequently, Falkbuilt, Ltd. counterclaimed for defamation and intentional interference with economic relations.27 DIRTT, Inc. then moved to dismiss the counterclaim on the grounds of forum non conveniens, arguing that the counterclaim should be litigated in Canada.28 The court granted the motion.29 The Falkbuilt Defendants also moved to dismiss the entire action on the grounds of forum non conveniens, in favor of the first-filed action in Calgary.30 The court 23 See generally Verified Complaint. 24 Id. at ¶ 26. 25 Id. at ¶¶ 29â64. 26 Id. at ¶¶ 65â83. 27 Falkbuilt, Ltd.âs Answer to Verified Complaint and Counterclaim at 29â48, ECF No. 42, filed February 5, 2020; Falkbuilt, Ltd.âs First Amended Counterclaim, ECF No. 62, filed March 18, 2020. 28 Plaintiffâs Motion to Dismiss First Amended Counterclaim, ECF No. 63, filed April 1, 2020. 29 See Order dated March 30, 2021, ECF Nos. 156; Transcript of Hearing on Motion to Dismiss held on 03/30/21, ECF No. 157. 30 Motion to Dismiss, ECF No. 134, filed November 19, 2020. granted that motion in part, keeping the part of the action that involved the Utah defendants, who had not joined in the motion.31 Plaintiffs later filed a notice appealing the order on the Falkbuilt Defendantsâ motion to dismiss.32 That appeal is currently pending before the Tenth Circuit. On September 9, 2021, Plaintiffs also filed this Motion seeking relief under Rule 60(b).33 LEGAL STANDARD Federal Rule of Civil Procedure 60(b) provides that âthe court may relieve a party or its legal representative from a final judgment, order, or proceedingâ under certain circumstances.34 Plaintiffs rely on two provisions of Rule 60(b). First, under Rule 60(b)(2), relief may be granted where there is ânewly discovered evidence that, with reasonable diligence, could not have been discovered in time to move for a new trial under Rule 59(b).â35 Second, under Rule 60(b)(6), relief may also be appropriate for âany other reason that justifies relief.â36 As a âgeneral matter the filing of a notice of appeal is an event of jurisdictional significance that confers jurisdiction on the court of appeals and divests the district court of its control over those aspects of the case involved in the appeal.â37 But the rule in civil cases âis that after an appeal has been taken the district court retains jurisdiction to consider and deny a Rule 60(b) motion on the merits.â38 The court also is permitted to enter an order indicating that it 31 Order dated May 21, 2021, ECF No. 164; Transcript of Motion Hearing held on 05/19/21, ECF No. 166. 32 Notice of Appeal, ECF No. 171, filed June 16, 2021. 33 Motion at 1, ECF No. 201. 34 Fed. R. Civ. P. 60(b). 35 Fed. R. Civ. P. 60(b)(2). 36 Fed. R. Civ. P. 60(b)(6). 37 Burgess v. Daniels, 576 Fed. Appâx 809, 813 (10th Cir. 2014) (cleaned up) (quoting United States v. Battles, 745 F.3d 436 (10th Cir. 2014)). 38 Burgess, 576 Fed. Appâx at 813 (âAccordingly, although the district court here lacked jurisdiction to grant Mr. Burgessâs Rule 60(b) motion, it was not in fact precluded from considering and denying the motion on its merits.â). would grant the 60(b) motion on remand, in which case the court of appeals would decide whether to remand the case back to the district court so that it may do so.39 DISCUSSION I. Plaintiffs Have Not Satisfied the Rule 60(b)(2) Standard. A. The Rule 60(b)(2) Requirements Plaintiffs submitted eleven new email chains in support of their motion. To meet the Rule 60(b)(2) standard, Plaintiffs must show that (1) the emails were newly discovered; (2) they were diligent in discovering the new evidence; (3) the newly discovered evidence âcould not be merely cumulative or impeaching,â (4) the newly discovered evidence is material; and (5) the newly discovered evidence would probably produce a different result.40 The court assumes, without deciding, that Plaintiffs have met the requirements of the first four factors. The fifth factor requires Plaintiffs to show that the newly discovered evidence would âprobably produce a different result.â41 B. The Eleven Emails at Issue The emails chains are summarized as follows: âą 1/29/19 email from Tony Howells at Everlast Capital Partners to Mogens Smed pitching Utah as a production site. Howellsâ email indicates that Smed showed âlittle interestâ in Salt Lake City a week earlier, states that Smed may be âmore receptiveâ now, but that Smed should let Howells know if âthis is still a non-starter.â No response from Smed is included. Howells then forwards the email to Henderson and the two discuss meeting.42 âą 2/14/19 email from Henderson to Smed forwarding an idea for using âFalk-Tech.â Materials attached to the email state that Henderson did âa quick beta-test.â 39 Fed R. Civ. P. 62.1. 40 See Lyons v. Jefferson Bank & Trust, 994 F.2d 716, 727 (10th Cir. 1993) (referring to the standard for new evidence post trial); see also Zurich N. Am. v. Matrix Serv., Inc., 426 F.3d 1281, 1290 (10th Cir. 2005). 41 Lyons, 994 F.2d at 727. 42 Exhibit D, ECF No. 201-3. Henderson begins the email with âPLEASE read this ideaâ and ends with âThis is a good idea â Consider it!â Smed responds âThis is great Lance.â43 âą 2/17/19 email from Henderson to Smed stating âHad a few ideas I wanted to throw outâsome are better than othersâso please read them allâ followed by various ideas observations, and information, including a construction budget for a different company that Henderson says shows âSLC [Salt Lake City] construction costs.â Smed forwards the email to a group email and says, âSome very interesting ideas.â 44 âą 2/18/19 email chain between Henderson and Joe Dallimore regarding developing a business plan for a company called NuCo or Take-1. The email references a âSept 1 launch day,â recounts a conversation with Smed about the plan, and states that âSmed will be coming to SLC in two weeks and we will sit down again.â45 Subsequent emails discuss Henderson and Dallimore scheduling a meeting for the two of them.46 âą Exhibit G is a duplicate of the foregoing email chain except that it does not include the full chain.47 âą 2/21/19 email from Henderson to Smed regarding various ideas Henderson had about building a âweb app.â Henderson says âSorry this is such a long introductionâIâm excited to hear back. If there is no Falk interest, Iâd like to present this concept to some friends of mine who I believe would run with the idea to develop[] the platform at which point we could look at it again and consider using the service merely as a client.â 48 Henderson also references a prior construction project âin Salt Lake City (home of future Falk manufacturing ;-).â49 No response from Smed is included. âą 4/2/19 email chain in which Smed asks a Falkbuilt employee to book the Hendersons flights to Calgary.50 Subsequent emails between the Hendersons and the Falkbuilt employee show the flight plans.51 43 Exhibit E, ECF No. 201-4. 44 Exhibit B, ECF No. 201-1. 45 Exhibit F, ECF No. 201-5. 46 Id. 47 Exhibit G, ECF No. 201-6. 48 Exhibit H, ECF No. 201-7. 49 Id. 50 Exhibit J, ECF No. 201-9. 51 Id. âą 4/10/19 email from Smed to an email group stating that âFalk will have absolutely the most compelling folding wall offering in the industryâ and âwill be using components from proven folding wall manufacturers and adapting them to our own criteria.â52 âą 5/20/19 email from Scott Wilcox at Interior Solutions to Mogens Smed about âa significant opportunity with a company called Mohave Narrows.â53 There is no information about what the âopportunityâ is. Wilcox tells Smed âwe may be able to help Falkbuilt with the Mojave Narrows opportunity until you get your Utah group set up.â âą 7/17/2019 email from Henderson to Barrie Loberg at Falkbuilt, stating that Henderson recently put in his notice with DIRTT, that he is in Calgary, that he has a company set up with logistics in process, that â4 projects looking good after we launchâ and that he â[c]ouldnât be more excited about what you and Mogens have put together!â54 âą 7/23/19 email chain between Henderson and a Falkbuilt employee describing Hendersonâs efforts on various business startup logistics like insurance, phone, expenses, accounting, software, healthcare, etc.55 For purposes of this motion only, the court finds that the foregoing eleven emails selected by Plaintiffs from the Utah Defendants show or suggest the following. In the first half of 2019, Smed and Henderson are discussing and planning on Henderson starting a Falkbuilt affiliate in Utah. These discussions occur during a 5â6-month period before Henderson leaves DIRTT. Henderson has many business ideas which he shares with Smed during this period. Smed also shares an idea or strategy with Henderson and others in a group email. Smed likely came to Utah at least once, and Henderson went to Calgary at least twice. Henderson and others wanted Falkbuilt to manufacture in Utah, but the emails do not show that Smed accepted that suggestion or that Falkbuilt manufacturing occurred. By May 20, 2019, no Falkbuilt-related enterprise had 52 Exhibit I, ECF No. 201-8. 53 Exhibit L, ECF No. 201-11. 54 Exhibit K, ECF No. 201-10. 55 Exhibit C, ECF No. 201-2. been established (third-party offer to Smed to handle business opportunity âuntil you get your Utah group set upâ). By July 17, 2019, a Falkbuilt entity had been âset upâ by Henderson, though it appears he still was a DIRTT employee at the time (âput my notice in last Fridayâ). It does not appear to have yet started actual client work, but the groundwork was being prepared (â4 projects looking good after we launchâ). C. Plaintiffsâ Interpretation of the Emails Early in their motion, Plaintiffs highlight three snippets from the courtâs ruling which they allege the recently produced documents show âwere not accurateâ56: âą âAny theft or misappropriation of DIRTTâs confidential information initially occurred in Canada. So this factor favors applying Canadian law.â (Dkt. 166 at 70:14-17); âą The focal point for this litigation is Mr. Smed, who resides in Canada and has strong ties to Canada. (Id. at 71:18-24); and âą âThe partiesâ relationship originated and ended up . . . in Canada, and Mr. Smed resides there.â (Id. at 72:1-4 (emphasis added)).57 Plaintiffs do not explain how the eleven emails show that those statements âwere not accurate.â The first statementâthe initial misappropriation of DIRTT, Ltd.âs confidential information by Smedâis not addressed by the emails at all. To the limited extent that the emails touch upon the second and third statements, they support them. In short, the eleven emails that are the subject of this motion do nothing to undercut any of those statements. None of the emails 56 Rule 60(b) Motion at 4. 57 The ellipses in Plaintiffsâ quote alter the meaning of the full quote. The ruling actually states that âthe partiesâ relationship originated and ended up, both Falkbuilt, Ltd, and DIRTT, Ltd, have their headquarters in Canada, and Mr. Smed resides there.â Transcript at 72:1-4, ECF No. 166. Elsewhere in the ruling, the court repeatedly notes that while the partiesâ relationship began in and is centered in Canada, and the initial alleged misconduct occurred there, the United States was involved as well. See, e.g., Transcript at 67:21-22 (âThe first amended complaint alleged or implies economic injury and market confusion in the US and in Canadaâ); id. at 69:9â10 (âThe alleged injury occurred across borders.â); id. at 70:12â14 (âCanada has the stronger claim to being the place where the conduct causing the injury occurred, even though that conduct crosses the border.â). address Smedâs alleged initial theft of DIRTTâs confidential information. None of the emails suggest that Smed does not reside in Canada, does not have strong ties there, and is not key to the partiesâ overarching litigation. And none of the emails suggest that the relationship between the DIRTT and Falkbuilt parties did not originate in Canada, or that DIRTT, Ltd. and Falkbuilt, Ltd. do not have their headquarters in Canada. Plaintiffsâ first discussion of any specific email, as opposed to general statements about the meaning of the emails generally and collectively, occurs in their argument regarding three of the Rule 60(b)(2) factors about (1) the evidence being newly discovered, (2) that Plaintiffs were diligent in seeking it, and (3) that the evidence was not cumulative or impeaching.58 As noted earlier, the court assumes, without deciding, that these factors are met.59 Plaintiffs then turn to âfactors four through sixâ arguing âthe newly discovered evidence is not cumulative because it directly contradicts the Falkbuilt Defendantsâ assertion that â[o]ther than Mr. Henderson thereâs really no connection to Utah in this lawsuit.â60 The court notes that there is no factor sixâthe test has five factors.61 Also, factors four and five are not, as Plaintiffs initially suggest, about âcumulativeâ evidenceâfactor three addresses whether the evidence is merely cumulative. Instead, the fourth and fifth factors are about materiality and whether the newly discovered material evidence would probably produce a different result.62 58 Rule 60(b) Motion at 8â12. 59 Plaintiffs argue in this section that the emails show âFalkbuiltâs formation and operational presence in Utah since January 2019 . . . months before Hendersonâs theft of trade secrets.â Rule 60(b) Motion at 9. As discussed supra at 6â8, the emails do not show that Falkbuilt was formed and operating in Utah in January 2019, but they do show that Henderson and Smed were preparing for that to occur and that a company was formed in or around July 2019. Hendersonâs alleged theft of DIRTTâs trade secrets is a subject of the still pending case before this court and also is not discussed in the emails in question. 60 Rule 60(b) Motion at 12. 61 See Zurich N. Am., 426 F.3d at 1290 (listing five factors). 62 Id. On the substance, Plaintiffsâ focus on Falkbuiltâs statement that â[o]ther than Mr. Henderson thereâs really no connection to Utah in this lawsuitâ misses the mark.63 That the prevailing party said it does not mean the court adopted it. Instead, the court found as follows: DIRTT has alleged market confusion and injury which transcend any single place. While Utah has some connection to this claim and certainly has connection to the claims against the Hendersons and Falk Mountain States, [by] contrast, Albertans are more connected to both sides for the many reasons previously stated. Moreover, DIRTT will still be able to proceed with its claims against the Henderson and Falk Mountain States, which are more directly tied to Utah.64 Next, after providing their summary of most of the emails,65 Plaintiffs explain what they think they show. Plaintiffs claim that the emails show that âthe partiesâ relationship was not localized within Canada as Falkbuilt originally represented, but included business strategy, finances and product testing in Utah, and that as part of the TTIMIT group national rollout, Utah was central to Falkbuiltâs creation.â66 Unpacking these claims, once again, the court notes that just because the prevailing party asserted something67 does not mean that the court based its ruling on it. The court did not find that the partiesâ relationship was limited or âlocalizedâ within Canada. Instead, in evaluating the fourth Restatement Section 145 factorâthe center of the partiesâ relationshipâthe court found that Canada had the better claim because the two parent companies are headquartered there, 63 The broader argument in which counselâs quote appears is about what a Utah jury would think about why they were being called to decide a case where the two parent corporations are Canadian, whereas Albertans would understand why they were being called upon to decide the larger case. See Transcript at 15:19-25â16:1-13. 64 Transcript at 75:18â25. 65 Rule 60(b) Motion at 12â16. 66 Id. at 16. 67 Plaintiffs provide no cite to the record for this statement. The court will not address other examples of Plaintiffs asserting the courtâs adoption of Defendantsâ statements, other than to note that it happens multiple times in Plaintiffsâ briefing. See, e.g., Plaintiffsâ Reply Brief in Support of Motion for Relief from Judgment Pursuant to Fed. R. Civ. Proc. 60(b) at 10 (âThe Falkbuilt Defendantsâ counsel said it was much âmuch ado about nothing,â and the Court agreed.â). Plaintiffsâ counsel is cautioned to use care that rhetorical flourish does not further undermine accuracy. Smed, the former founder and CEO of one Canadian company and the founder and current CEO of the other, is a Canadian resident, and Smed also is alleged to have stolen alleged trade secrets owned by the Canadian company.68 Regarding âbusiness strategy, finances[,] and product testing in Utah,â69 the emails show the following. Henderson had lots of ideas he wanted to share with Smed. Smed offered brief replies to those emails. Smed also shared his own idea or strategy with an email group which included Henderson. Henderson, in support of one of Hendersonâs ideas, performed some kind of âbeta testâ he wanted Smed to know about. The email does not suggest that Smed asked for it; to the contrary, Henderson tells Smed âPLEASE read this ideaâ and âThis is a good idea â Consider it!â, strongly suggesting that both the idea and the test previously were unknown to Smed.70 Plaintiffsâ âfinancesâ statement is an apparent reference to a pitch email from Tony Howells at Everlast Capital Partners. As noted earlier, Howellsâ email indicates that Smed showed âlittle interestâ in Salt Lake City a week earlier, states that Smed may be âmore receptiveâ now, but that Smed should let Howells know if âthis is still a non-starter.â71 The fairest reading is that Howells is pitching Smed, not the other way around, and that Smed apparently is not much interested. As noted earlier, the emails, taken together, certainly show that Henderson and Smed are anticipating that Henderson would join Falkbuilt at some point, all while Henderson was working for DIRTT, Inc. Both sides are sharing ideas and getting ready for the endeavor. This certainly will be relevant in the case still before the court involving the Hendersons and Falk Mountain States. But these emails do not establish that Falkbuilt and Smed are requesting or 68 Transcript at 71â72, ECF No. 166. 69 Rule 60(b) Motion at 16. 70 ECF No. 201-4. 71 ECF No. 201-3. directing product testing in Utah, seeking financing, or executing any actual business operations at the time of the emails. Regarding the claim that the emails show that âUtah was central to Falkbuiltâs creation,â72 the emails do not even reference Falkbuiltâs âcreation,â much less contain any information showing that Utah was âcentralâ to it. Additionally, Plaintiffsâ filing in the Calgary court show that Falkbuiltâs creation predates all of the emails in question.73 Plaintiffs then contend that the emails show that the âsubsequent disclosure and use of DIRTT trade secretsâclearly commenced with Falkbuiltâs plans of establishing a Utah presence and culminated with Falkbuiltâs unlawful competition with DIRTT there, including Smedâs personal presence there.â74 The emails do not do that. The emails say nothing about the taking or use of DIRTTâs trade secrets, much less link any DIRTT trade secrets with establishing a Utah presence. Plaintiffs also note that the emails show âFalkbuiltâs and Smedâs activities extended beyond Canada, involving Utah and other U.S. markets from the beginning of the Falkbuilt enterprise.â75 As already discussed, the forum non conveniens analysis recognized that the case was transnational, starting in Canada with Canadian parent companies and a common Canadian founder and then spilling over into the United States,76 so that is not new. The claim that Utah was involved âfrom the beginning of the Falkbuilt enterpriseâ is not supported by the emails, which postdate Falkbuiltâs founding. 72 Rule 60(b) Motion at 16. 73 Falkbuilt Ltd. was incorporated on October 26, 2018. Canadian Statement of Claim at ¶ 3, ECF No. 134-1; see also Canadian Amended Amended Amended Statement of Claim at ¶ 6, ECF NO. 207-3. The earliest email at issue here is three months later. 74 Id. at 17 (footnote omitted). 75 Id. 76 See supra at 9 n.57; infra at 20. Finally, Plaintiffs note that Henderson stated in an email that he has â4 projects looking good after we launch.â77 Once again, this is fair game in the action that still is pending before this court against Hendersons and Falk Mountain States.78 D. The Forum Non Conveniens Analysis To analyze whether these emails would probably produce a different result, it is helpful to provide a summary of the courtâs analysis and reasoning in granting the dismissal based on forum non conveniens.79 âThe doctrine of forum non conveniens permits a court to dismiss a case when an adequate alternative forum exists in a different judicial system and there is no mechanism by which the case may be transferred.â80 And âforum non conveniens is proper when an adequate alternative forum is available and public- and private-interest factors weigh in favor of dismissal.â81 The Supreme Court has stated that âthe central purpose of any forum non conveniens inquiry is to ensure that the trial is convenient, [and] a foreign plaintiffâs choice deserves less deference.â82 Dismissal under forum non conveniens must meet two threshold requirements.83 âFirst there must be an âadequate alternative forum where the defendant is amenable to process.â Second, âthe court must confirm that foreign law is applicable,â because forum non conveniens is improper if foreign law is not applicable and domestic law controls.â84 And if both requirements 77 Exhibit K, ECF No. 201-10. 78 Plaintiffs make a number of other factual assertions, characterizations, and interpretations of the emails and facts in their briefing without citing any specific email or record evidence. Because those claims are made with no reference to any email or specific part of the record, they are not discussed further here. 79 The entire opinion is located at ECF No. 166, 58â80 and ECF No. 164. 80 Kelvion, Inc. v. PetroChina Canada Ltd., 918 F.3d 1088, 1091 (10th Cir. 2019). 81 Kelvion, 918 F.3d at 1091 (citing Piper Aircraft Co. v. Reyno, 454 U.S. 235 (1981)). 82 Piper Aircraft Co. v. Reyno, 454 U.S. 235, 256 (1981). 83 Archangel Diamond Corp. Liquidating Trust v. Lukoil, 812 F.3d 799, 804 (10th Cir. 2016). 84 Archangel Diamond, 812 F.3d at 804 (internal citations omitted). are met, then âthe court weighs the private and public interests to determine whether to dismiss.â85 As to the first requirement, the court noted the similarities between the Canadian and United States actions.86 Plaintiffsâ pleadings in both actions âindicate that both courts may address the same alleged wrongful conduct and ultimately may grant substantive relief.â87 The court concluded that â[t]he Canadian court in which DIRTT, Ltd., has already filed a related lawsuit is an available and adequate forum for the claims against defendants Falkbuilt, Ltd.; Falkbuilt, Inc.; and Mr. Smed.â88 As to the second threshold requirement, the court found that foreign law is applicable and domestic law does not control the claims against those three defendants.89 Part of this analysis required the court to apply Utahâs choice of law rules and the most significant relationship test from Section 145 of the Restatement Second of Conflict of Laws.90 This test involves four factors: (1) âthe place where the injury occurred;â (2) âthe place where the conduct causing the injury occurred;â (3) âthe domicil, residence, nationality, place of incorporation and place of business of the parties;â and (4) âthe place where the relationship, if any, between the parties is centered.â91 First as to the place of injury, the court discussed that Plaintiffs allege that the Falkbuilt Defendants stole confidential information from a Canadian company, and the First Amended Complaint âdoes not explicitly limit the injury or damages sought to the United States and 85 Archangel Diamond, 812 F.3d at 804. 86 Transcript at 60â62, ECF No. 166. 87 Id. at 62:17â19. 88 Id. at 66:12â15. 89 Id. at 66â72. 90 Id. at 67. 91 Restatement (Second) of Conflicts of Law: The General Principle § 145 (1971); see also Transcript at 67â72. contains numerous statements that are broad regarding the damages and the injury.â92 The court also noted the confusion in the Amended Complaint referring to DIRTT, Ltd. and DIRTT, Inc. collectively.93 Plaintiffs argued these entities are âtotally separateâ and âare operating on other sides of the borderâ94 and yet they are continually referred to collectively.95 Ultimately the court did not weigh the first factor in favor of applying Canadian law or domestic law as the injuries were ânot limited to those two in those areas.â96 Next, regarding the place where the conduct causing injury occurred, the court noted what was presented to the court, while involving the United States, âprimarily point[ed] to Canada.â97 While additional conduct extended beyond Canada, Canada had the âstronger claimâ because âany theft or misappropriation of DIRTTâs confidential information initially occurred in Canadaâ and this favored applying Canadian law.98 As to the third factor, the court looked at the domicile, residence, nationality, place of incorporation, and place of business of the parties.99 Both businesses conduct business internationally. Both Falkbuilt, Ltd. and DIRTT, Ltd. are incorporated in Calgary, Alberta and have their headquarters and principal places of business in Calgary.100 In its analysis, the court further noted that if the case against the Falkbuilt Defendants moved to Canada, the case here could still proceed with the ânarrow Utah focusâ against the Hendersons and Falk Mountain States Defendants.101 Furthermore, Smed is a citizen and resident 92 Transcript at 67:13â15. 93 Id. at 68. 94 The issue of Plaintiffsâ varying representations about DIRTT, Inc. is discussed infra at 21â25. 95 Transcript at 68â69. 96 Id. at 69:11â14. 97 Id. at 69:24â25. 98 Id. at 70:10â17. 99 Id. at 70â71. 100 Id. at 70â71. 101 Id. at 71:14â17. of Canada and is at the center of Plaintiffsâ claims, âsolidifying this factor in favor of applying Canadian law.â102 As to the fourth factor, the court analyzed the place where the relationship between the parties is centered.103 The relationship between the two parent companies, DIRTT, Ltd. and Falkbuilt, Ltd., as well as their common founder and leader, Mogens Smed, originated in and continues in Canada.104 Both DIRTT, Ltd. and Falkbuilt, Ltd. are Canadian companies, and the fourth factor âsupports the applicability of Canadian law.â105 The court then addressed the relevant private interest factors: (1) the relative ease of access to sources of proof; (2) the availability of compulsory process for compelling attendance of witnesses; (3) cost of obtaining attendance of willing non-party witnesses; (4) possibility of a view of the premises, if appropriate; and (5) all other practical problems that make trial of the case easy, expeditious, and inexpensive.106 Applying these factors, the court noted that both Falkbuilt, Ltd. and DIRTT, Ltd. have their principal places of business in Calgary.107 Additionally, Plaintiffs have alleged that over 50 employees have joined Falkbuilt and Smed.108 Witnesses will be needed from the partiesâ principal places of business in Canada.109 Discovery can more easily be obtained in Canada as to the Canadian defendants and any nonparty employees in the United States can be compelled to produce documents or testify in Canada.110 A review of the premises would also be better suited in a Canadian forum.111 And lastly, the practical problems weighed in favor of dismissal because of âthe partiesâ business 102 Id. at 71:18â20. 103 Id. at 71â72. 104 Id. at 72. 105 Id. at 72:11â13. 106 Archangel Diamond, 812 F.3d at 806 (citation omitted). 107 Transcript at 73:12â15. 108 Id. at 73:16â18 (citing First Amended Complaint at ¶ 39). 109 Id. at 73. 110 Id. at 74. 111 Id. at 74. presence in Canada, their history there and misappropriation of confidential information in Canada, all of that certainly started there allegedly.â112 Most notably, the alleged wrongful conduct began in Canada and spread from there.113 In all, the private interests firmly weighed in favor of dismissal.114 The court also considered the relevant public interest factors: (1) administrative difficulties of the courts with congested dockets which can be caused by cases not being filed at their place of origin; (2) the burden of jury duty on members of a community with no connection to the litigation; (3) the local interest in having localized controversies decided at home; and (4) the appropriateness of having diversity cases tried in a forum that is familiar with the governing law.115 The court noted the first factor âreally doesnât play any role because there is insufficient information about comparative court congestion.â116 The second favor âsomewhatâ favored dismissal.117 The court noted that Utah has a connection to the claims against the Hendersons and Falk Mountain States Defendants, but Albertans âare more connected to both sides [DIRTT, Ltd. and Falkbuilt, Ltd.] for the many reasons previously stated.â118 The claims against the Hendersons and Falk Mountain States were more directly tied to Utah, so that case would be able to proceed before the court.119 As to the third factor, the court discussed that both companies conduct business internationally and âthe interest in deciding the controversy is not entirely localized.â120 112 Id. at 74:20â23. 113 Id. at 75. 114 Id. at 75. 115 Archangel Diamond, 812 F.3d at 808 (citation omitted). 116 Transcript at 75:13â14. However, it must be noted that when DIRTT, Inc. was seeking a forum non conveniens dismissal of the Falkbuilt Defendantsâ counterclaim, it argued that U.S. federal courts are more congested than their Albertan counterparts. See ECF No. 63 at 13 n.1. 117 Id. at 75:17. 118 Id. at 75:19â23. 119 Id. at 75. 120 Id. at 76:4â5. However, the court determined that Plaintiffsâ allegations âprimarily center around confidential information and trade secrets owned by a Canadian company,â specifically DIRTT, Ltd.121 While Plaintiffs allege dissemination of the confidential information, Alberta âhas a much stronger local interest in the broad dispute between DIRTT and Falkbuilt.â122 Lastly, the fourth factor weighed most heavily in favor of dismissal.123 The court determined that the alleged wrongdoing and relief between the Utah and Canadian actions is âsubstantially similar.â124 The trade secrets at issue are trade secrets owned by a Canadian company.125 The Canadian action was initiated first, the Canadian court is âalready familiar with the parent companies,â and Canadian law is applicable to the claims alleged in the First Amended Complaint.126 The court summarized its conclusions: [T]his dispute primarily involves Canadian actors together with others and their alleged actions in Canada with additional actions and effects outside of Canada, including the United States and perhaps elsewhere. Mr. Smed is at the very center of this action. He is a Canadian citizen; heâs a former executive of DIRTT, Ltd, the head executive in fact, which is DIRTT, Inc.âs parent company in Canada and is the founder of Falkbuilt in Canada. He gained information about DIRTT operations while employed in Canada. He left DIRTT and started Falkbuilt, Ltd, in Canada. DIRTT claims that Mr. Smed masterminded this theft of DIRTTâs confidential information and engaged in other wrongdoing, such as luring away Canadian DIRTT employees and utilizing DIRTTâs information to unfairly compete against DIRTT. While DIRTT and Falkbuilt have expanded their operations across the border into the US, the dispute originated in Canada when Mr. Smed left DIRTT, Ltd., in Canada.127 121 Id. at 76; see also id. at 67 (noting that DIRTT, Ltd, is the owner of the trade secret information at issue and licenses to subsidiary or related company DIRTT, Inc.); Amended Complaint at ¶ 2 (âDIRTT Ltd. is the licensor of the trade secrets at issue in this case.â). 122 Transcript at 76:10â13. 123 Id. at 76:17â18. 124 Id. at 76:22â23. 125 Id. at 76:24â25. 126 Id. at 77:1â8. 127 Id. at 77:16â78:7. In contrast to interpreting the eleven emails in question, Plaintiffs spend very little time in their briefing analyzing the forum non conveniens factors. Plaintiffs assert that the âNew Correspondence swings the first through the fourth Section 145 factors decidedly in DIRTTâs favor.â128 This is not followed by any significant analysis of those factors and how they would probably have changed the courtâs Section 145 analysis.129 Plaintiffs then argue that the emails âmaterially impact[] the extent of local interest for a Utah court and potential juryâ because Henderson had âat least four local projects ready for âlaunchâ,â âHenderson reached out to at least 60 contacts,â and the case involves âbusiness wrongs in Utah resulting in injury and harm to a Utah business, and Utah played a significant role in a companyâs national rollout.â 130 Local interest and the burden of jury duty are two of the five public interest factors. Henderson and Falk Mountain Statesâ alleged misconduct will be front and center in the case still pending before this court, including at trial. The claim that Henderson reached out to at least 60 contacts is not addressed by the eleven emails here. The argument that the case involves âharm to a Utah businessâ is not addressed by the emails or supported by the record: DIRTT, Ltd. was formed in Canada and has its principal place of business in Canada; DIRTT, Inc. was formed in Colorado and either has its principal place of business in Canada or in Georgia and Arizona, depending on which of Plaintiffsâ filings are credited.131 The contention that âUtah played a significant role in a 128 Rule 60(b) Motion at 18. 129 Id. at 18â19. It is preceded by Plaintiffsâ argument about âphysical acts of âmisappropriationââ and âsubsequent disclosure and use of DIRTT trade secretsâ but, as noted previously, the emails do not discuss Smedâs or Hendersonâs alleged taking of DIRTT trade secrets or show how they used them. 130 Id. at 18. 131 See infra at 21â25. companyâs national rolloutâ132 is not demonstrated by the emails. Smed, a Canadian, and Falkbuilt, Ltd., a Canadian company, apparently are operating in various states, including Utah, through a network of affiliates (much like DIRTT, Ltd.), but that does not put Utah at the center of the dispute. E. The Mysterious Case of DIRTT, Inc. Throughout the litigation between DIRTT and Falkbuilt, Plaintiffs have made various different representations about DIRTT, Inc.âs headquarters, principal place of business, and operations. Some of these statements conflict with each other. On December 11, 2019, DIRTT, Inc., the only original plaintiff in this case, filed a Verified Complaint.133 The Complaint alleged that DIRTT, Inc. is âa Colorado company, with its headquarters and principal place of business in Calgary, Alberta, Canada.â134 It further alleged that it âoperates in Canada, the United States, and other jurisdictions around the world.â 135 Nowhere in the Complaint is there any acknowledgement that DIRTT, Inc. has a parent company in Calgary, that the parent company is the owner of the trade secrets at issue, or that the parent company had previously filed related, ongoing litigation in Canada. Attached to the Complaint was Defendant Hendersonâs employment offer with âDIRTT Environmental Solutionsâ with an address in Calgary, Alberta, Canada.136 The letter is signed by Jason Robinson for âDIRTT Environmental Solutions, Inc.â137 Also attached as an exhibit to the 132 Id. 133 Verified Complaint, ECF No. 2. 134 Id. at ¶ 1. 135 Id. at ¶ 2. 136 05/21/2009 Letter at 1, ECF No. 2-1. 137 Id. at 2. Complaint was DIRTT, Inc.âs Regional Partner Agreement.138 The address for DIRTT, Inc. is listed as Calgary, Alberta, Canada and is the same address as the offer of employment.139 On April 1, 2020, DIRTT, Inc., still the only plaintiff at the time, filed a motion to dismiss Falkbuiltâs First Amended Counterclaim on the grounds of forum non conveniens.140 In its motion, DIRTT, Inc. made numerous statements that it was located in Canada, conducts business in Canada, and had employees in Canada. For example, on the first page of the motion, DIRTT, Inc. argued that âboth DIRTT and Falkbuilt are located in Canada.â141 Later, DIRTT, Inc. argued, âThat alternate forum is Calgary, Alberta, Canada, where DIRTT is amenable to service of process.â142 On the same page, DIRTT, Inc. noted that âthe likely sources of proof are located in Canada, as both DIRTT and Falkbuilt are headquartered and do business there, with critical witnesses and documents located in Canada.â143 On the next page, DIRTT, Inc. argued that â[d]ocuments relevant to the partiesâ arguments will be located on the companiesâ servers in those Canadian locations, and any physical documents or other evidence will also most likely be found in CanadaâŠA number of Falkbuilt employees could foreseeably be called as witnesses, in addition to the Companyâs founder, Mogens Smed. DIRTT employees could also likely be called. All of these individuals reside and work in Canada.â144 The court granted Plaintiffâs motion to dismiss so that the claim could be heard in Canada.145 138 DIRTT Regional Partner Agreement, ECF No. 2-4. 139 Id. at 1. 140 DIRTT, Inc.âs Motion to Dismiss (DIRTT Motion to Dismiss), ECF No. 63, filed April 1, 2020. 141 Id. at 1 142 Id. at 11. 143 Id. at 11. 144 Id. at 12. 145 See ECF Nos. 156, 157. On October 20, 2020, DIRTT, Inc. filed a First Amended Complaint, adding DIRTT, Ltd. as a plaintiff.146 There, Plaintiffs renewed their representation from their original Complaint that âDIRTT, Inc. is a Colorado company,â but dropped the original Complaintâs averment that DIRTT, Inc. had its âheadquarters and principal place of business in Calgary, Alberta, Canada,â147 alleging now instead that it had âprincipal places of business in Savannah, Georgia and Phoenix, Arizona.â148 On November 19, 2020, the Falkbuilt Defendants moved to dismiss the First Amended Complaint.149 On December 17, 2020, Plaintiffs opposed the Falkbuilt Defendantsâ motion to dismiss.150 In that pleading, Plaintiffs argued that DIRTT, Inc. is a âColorado company operating in the U.S.â151 It also alleged that âDIRTT, Inc. is a U.S. plaintiff.â152 And, Plaintiffs argued that âDIRTT, Inc. only operates in the U.S. and has no factory in Canada.â153 On May 19, 2021, the court held a hearing on the Falkbuilt Defendantsâ motion to dismiss.154 At the hearing, Plaintiffsâ counsel made various statements regarding DIRTT, Inc.âs status. He stated that âDIRTT, Inc. is only operating in the US. It has no employees outside of the US. It has no sales outside of the US. It has a US incorporation.â155 He stated there was âno overlapâ between DIRTT, Inc. and DIRTT, Ltd,156 DIRTT, Inc. is a âUS only companyâ and 146 First Amended Complaint, ECF No. 117, filed October 20, 2020. 147 Verified Complaint at ¶ 1. 148 First Amended Complaint at ¶ 1. 149 Motion to Dismiss, ECF No. 134. 150 Plaintiffsâ Opposition to Motion to Dismiss First Amended Complaint as to Falkbuilt, Ltd., Falkbuilt, Inc., and Mogens Smed (Plaintiffsâ Opposition), EF No. 139, filed December 17, 2020. 151 Plaintiffsâ Opposition at 5. 152 Plaintiffsâ Opposition at 17. 153 Id. at 22. 154 See Transcript of Motion to Dismiss Hearing, ECF No. 166. 155 Id. at 17:22â24. 156 Id. at 18:2â3. does not operate in Canada.157 Later, counsel again reaffirmed that DIRTT, Inc. is a âUS company that operates only in the US.â158 Plaintiffsâ counsel also represented that DIRTT, Ltd. does not âoperate at all in the USâ and âthere are no allegations of DIRTT, Ltd. doing anything in the United States.â159 Lastly, counsel made clear that âDIRTT, Inc. does no business in Canada. Thatâs done for tax reasons. Itâs a very strict line. Thereâs no blending between the two.â160 On September 30, 2021, the Falkbuilt Defendants filed an opposition to Plaintiffsâ Rule 60(b) motion.161 Attached to the opposition was a Consent Order from the Canadian action, permitting the plaintiff in that action, DIRTT, Ltd., to file an Amended Amended Amended Statement of Claim.162 The Amended Amended Amended Statement of Claim added DIRTT, Inc. as a plaintiff in the Canadian action.163 DIRTT, Inc. is listed as âan affiliate of DIRTT, Ltd. incorporated under the laws of the States of Colorado, with its principal offices located in Calgary, Alberta,â164 not Georgia or Arizona. In summary, Plaintiffs have made varying representations over the course of this litigation about DIRTT, Inc. Originally, DIRTT, Inc. told the court that its headquarters and principal place of business were in Calgary. DIRTT, Inc. also said that operates in Canada, the United States, and other jurisdictions around the world. Similarly, in support 157 Id. at 18:4â8. 158 Id. at 29:11â12; see also id. at 30:3â4 (â[T]he only way we can protect those trade secrets which are in the US where the company only operates.â); id. at 30:16 (âWeâve alleged very clearly that there are third parties in the US that are critical to this dispute and that we need injunctive relief to protect our US-only business.â). 159 Id. at 34:13â14, 17â18. 160 Id. at 38:2â4. 161 Opposition to Motion for Relief from Judgment Pursuant to Fed. R. Civ. Proc. 60(b), ECF No. 207, filed September 30, 2021. 162 08/31/21 Consent Order, ECF No. 207-3. 163 Id. at 1; Amended Amended Amended Statement of Claim at ¶ 2. 164 Amended Amended Amended Statement of Claim at ¶ 2. of its effort to dismiss a counterclaim against it, DIRTT, Inc. made numerous statements about how it and Falkbuilt do business in Canada, are âlocatedâ and âheadquarteredâ there, and about the critical witnesses and documents that would be found there. Several months after DIRTT, Inc.âs forum non conveniens motion was fully briefed, Plaintiffs filed an Amended Complaint changing DIRTT, Incâs principal place of business from Calgary to Arizona and Georgia. At the hearing on the Falkbuilt Defendantsâ forum non conveniens motion, Plaintiffsâ counsel said that there is âno overlapâ and âno blendingâ between DIRTT, Ltd. and DIRTT, Inc. âfor tax purposes.â Counsel also said that DIRTT, Inc. is a âUS only company.â Yet despite all this, the most recent filing in the Calgary court states DIRTT, Inc. has âits principal offices located in Calgary, Alberta.â Whatever the reality actually is, and however Plaintiffs have chosen to organize themselves for tax or other purposes, Plaintiffsâ filings and representations regarding DIRTT, Inc. have been many and varied. And some of them seem to have varied based on whether DIRTT is seeking a forum non conveniens order or defending against one. . . . . Based on all of the foregoing, Plaintiffs have failed to meet the Rule 60(b)(2) standard. The emails they cite add little to the courtâs previous analysis that the relevant factors weigh in favor of the Falkbuilt Defendants being dismissed in favor of the first- filed case in Calgary. To prevail on its 60(b)(2) motion, Plaintiffs needed to show that the newly discovered emails would probably have changed the forum non conveniens result. These eleven emails would not have produced a different result. Also, the numerous conflicting representations Plaintiffs have made about DIRTT, Inc., while not key to the courtâs analysis, are not helpful. Accordingly, Plaintiffs have not met their burden under Rule 60(b)(2). II. Plaintiffs Have Not Satisfied the Rule 60(b)(6) Standard. Rule 60(b)(6) relief is âavailable only in âextraordinary circumstancesââ165 and âonly when necessary to accomplish justice.â166 âIn determining whether extraordinary circumstances are present, a court may consider a wide range of factors. These may include, in an appropriate case, âthe risk of injustice to the partiesâ and âthe risk of undermining the publicâs confidence in the judicial process.ââ167 Plaintiffs first argue the âplain inequity of forcing a U.S. company to seek redress for misconduct and harm that demonstrably occurred within this forum against a local competitor in a foreign, inconvenient forum.â168 This is not the case. Plaintiffs still have a suit before this court against the âlocal competitorsâ (Falk Mountain States and the Hendersons) for the local injury. The courtâs forum non conveniens order simply has sent the broader suit back to Calgaryâthe place where the overlapping case was first filed; the place where both parent companies are incorporated and have their headquarters and principal places of business; the place where their common founder and leader resides; and the place where this cross-border dispute has its origins. That one of the Plaintiffs, the subsidiary, was legally incorporated in a neighboring state and does business here certainly is relevant to the forum non conveniens analysis, but it is not dispositive, especially when it has made numerous conflicting representations to this court and the Calgary court about its presence in and ties to Canada. Plaintiffs can hardly claim that 165 Buck v. Davis, --- U.S. ---, 137 S.Ct. 759, 777 (2017) (quoting Gonzalez v. Crosby, 545 U.S. 524 (2005)). 166 United States v. Elwood, 757 Fed. Appâx 731, 734 (10th Cir. 2018) (quoting Cashner v. Freedom Stores, 98 F.3d 572, 579 (10th Cir. 1996)). 167 Id. at 778 (citation omitted). 168 Rule 60(b)Motion at 19, ECF No. 201. Calgary is truly foreign or inconvenient for them. There is no equitable argument on this point that justifies relief under Rule 60(b)(6). Plaintiffs also argue that because the Falkbuilt Defendants have âblocked enforcementâ of the Canadian injunction in the United States this court should grant relief under Rule 60(b)(6).169 The injunction referenced is one which the Plaintiffs and Defendants jointly prepared. Plaintiffs state that the Falkbuilt Defendants have ârefused to consent to enforcement of such an orderâ in a recently-filed Texas action.170 Plaintiffsâ complaint seems to be that the Falkbuilt Defendants did not voluntarily enter the injunction in Texas even though the Falkbuilt Defendants aver that they are bound by and operating under the terms of the injunction in the Canadian action.171 And Plaintiffs have not made any allegations, much less provided any evidence, that the Falkbuilt Defendants have violated the injunction either in Canada or in the United States. Plaintiffs provide no case law suggesting that their desire to have the stipulated protective order entered in another court warrants relief under Rule 60(b)(6). On the facts of this case, it does not. In sum, none of these issues support the âextraordinary circumstancesâ required under Rule 60(b)(6). As the court detailed in its ruling on the forum non conveniens dismissal, Plaintiffs have an adequate remedy against the Falkbuilt Defendants in the Canadian action. While this case has an unusual posture and some of its handling has been curious, this does not amount to grounds to undo the dismissal of the overarching case in favor of Canada. CONCLUSION 169 Id. at 20. 170 Id. at 21. 171 Opposition at 12â13; see also Exhibits 5, 6, 8, ECF Nos. 207-5, 207-6, 207-8. This case was destined to have some complexity in its handling. When the founder and CEO of one company leaves and founds a competitor company, questions regarding the taking and use of trade secrets or other confidential information often arise. The stakes are high for both sides. In this case, Mogens Smed, a Calgary resident, was a founder and longtime CEO of one Calgary company, which he left in favor of founding his own Calgary company. His former Calgary company accused him of taking with him and using its trade secrets, pilfering employees, and unfairly competing against his former company. It filed suit over it and related conduct in Calgary. The alleged misconduct and injury did not stop at the Canadian border, since these two Calgary companies both have subsidiaries or affiliates through which they operate in the United States and other countries. Seven months after filing in Calgary, DIRTT decided to open a second front in their litigation by filing a case in Utah against Smed and his companies, as well as two Utah residents and their Falkbuilt-affiliated company. DIRTT then filed a successful forum non conveniens motion against the Falkbuilt Defendantsâ counterclaim, sending it back to Canada, where all of this began. And so, the forum non conveniens seeds were sown and sprouted. In a forum non conveniens analysis, the court is tasked with deciding where trial would be most convenient, whether there is an adequate alternative forum, whether foreign law is applicable, and what the private and public interest factors suggest. Because this case involved both Canada and the United States, it is understandable why the issue was hotly disputed. But, at bottom, the beginnings of this case are in Calgary, the parent companies are Canadian, and so is the parent companiesâ common founder and leader. And the trade secrets at the core of this case are owned by the Canadian Plaintiff. So, while there are various other important actors, conduct, and injury involving the United States, Canada has the better claim to the larger dispute. The DIRTT entities obviously feel very strongly about litigating their claims against the Falkbuilt entities in multiple courts at the same time. This has been demonstrated both in the number and tenor of their multiple filings and in their aggressive characterizations and statements. But, on the facts of this case, covering much of the same underlying conduct in two or three different courts will serve primarily to greatly increase litigation expenses. However, while Plaintiffsâ 60(b) motion does not have merit and must be denied, the court recognizes that if the Calgary court unexpectedly and categorically denies discovery into Smed and Falkbuiltâs Utah activities, then such discovery in the still pending suit before this court would be warranted. And if any such discovery were to reveal grounds for liability for which Canadian law and the Calgary court could offer no relief, the question of whether Falkbuilt, Ltd. and Inc., as well as Mogens Smed, need to be added back to the case pending before this court then would be live. But that future contingency has not arisen. This court has every confidence that the Calgary court is fully capable of handling the bulk of this cross-border dispute in the first-filed case before it. Should assistance be needed in enforcing the Calgary courtâs orders or judgments, this court stands ready to assist. ORDER For the reasons stated in this Memorandum Decision and Order, Plaintiffsâ motion for Rule 60(b) relief is DENIED. Signed December 14, 2021. BY THE COURT aoe United States District Judge 29
Case Information
- Court
- D. Utah
- Decision Date
- December 22, 2021
- Status
- Precedential