GEA Farm Technologies, Inc. v. Peeples

Filing 43

CONSENT ORDER for Preliminary Injunction signed by District Judge Dale A. Drozd on 08/24/2018. (Flores, E)

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UNITED STATES DISTRICT COURT

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FOR THE EASTERN DISTRICT OF CALIFORNIA

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GEA FARM TECHNOLOGIES, INC., a
Delaware corporation,
Plaintiff,

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No. 1:18-cv-00756-DAD-EPG

CONSENT ORDER FOR PRELIMINARY
INJUNCTION

v.
STEVEN PEEPLES, an individual; and
DOES 1 through 10, exclusive,

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(Doc. No. 39)

Defendants.

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STEVEN PEEPLES, an individual,

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Counter-claimant,
v.
GEA FARM TECHNOLOGIES, INC., a
Delaware corporation, and ROES 1
through 10, inclusive,
Counter-defendants.

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On June 4, 2018, plaintiff and counter-defendant GEA Farm Technologies, Inc. (“GEA”)

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filed a complaint and motion seeking a temporary restraining order (“TRO”) and/or preliminary

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injunction against defendant and counter-claimant Steven Peeples (“Peeples”) prohibiting him
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from using or destroying GEA’s allegedly confidential information, among other requests. (Doc.

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Nos. 1, 2.) The hearing on the motion for a TRO occurred on June 12, 2018. (Doc. No. 23.)

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After the hearing, the parties filed a stipulation in lieu of the court issuing a TRO. (Doc. No. 27.)

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On June 14, 2018, the court issued an order pursuant to the stipulation, granting the temporary

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restraining order and setting a briefing schedule on the motion for preliminary injunction. (Doc.

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No. 28.) On July 5, 2018, the court issued an order modifying the scheduling order for the

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motion for preliminary injunction. (Doc. No. 33.)
After conducting limited discovery pursuant to the court’s order, the parties submitted a

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stipulation to vacate the hearing on GEA’s motion for preliminary injunction, currently scheduled

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for September 5, 2018. (Doc. No. 39.) The parties also submitted a consent order for a

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preliminary injunction. (Doc. No. 39-1.) The court has reviewed the parties’ stipulation and

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consent order and finds it appropriate to order the following pursuant thereto:

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1.

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For purposes of this order, the following terms are defined accordingly:
a.

GEA Files: The term “GEA Files” shall have the same meaning as set forth in the

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stipulation and order dated June 14, 2018 (Doc. No. 28 at n. 1). Specifically, the

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term shall mean any form of paper or electronic files or records pertaining to

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GEA’s business that Peeples had access to, or otherwise obtained during the

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course of his prior employment, or has otherwise obtained prior to the date of this

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order. The GEA Files include, but are not limited to, the eleven GEA files

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identified as Exhibit 1 to the Declaration of Amy Verhoeven (Doc. No. 2-9).

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b.

Peeples’ Accounts and Devices: The term “Peeples’ Accounts and Devices” shall

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have the same meaning as set forth in the stipulation and order dated June 14, 2018

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(Doc. No. 28 at ¶ 1). Specifically, the term shall mean any e-mail accounts

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(including, but not limited to, [e-mail]), servers, computers,

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external drives or other devices in Peeples’ personal possession, custody or

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control. Further, the term shall include the Peeples’ Accounts and Devices

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identified in Peeples’ sworn answers to interrogatories and Exhibit A thereto

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and/or as identified in compliance with paragraph 2(c)-(e) below pursuant to this
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Order, and any back-up physical drives and/or cloud-based storage services

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associated with those accounts and devices.

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c.

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Peeples’ Personal Account: “Peeples’ Personal Account” shall refer to Peeples’
personal Gmail email account with the address [e-mail].

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d.

Service Tool: The term “Service Tool” shall refer to the report(s) described in

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paragraphs 32-33 of the complaint and any other form of excel spreadsheet

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(regardless of its name, including, but not limited to, “Total Solutions”) which

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Peeples’ authored or developed, in whole or part, during his tenure at GEA that

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compiled and organized customer pricing, product, parts, maintenance and/or

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service information to assist in predicting, planning or scheduling service or

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maintenance for the GEA dairy systems and equipment owned and operated by

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individual GEA customers. The Service Tool, or any excerpt or portion thereof,

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shall be considered a GEA File for purposes of this order.

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2.

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Securing and Preserving GEA Files
a.

Peeples shall be enjoined and prohibited from personally deleting, destroying,

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tampering with or removing any GEA Files that reside on any e-mail accounts

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(including, but not limited to, Peeples’ personal account) and/or Peeples’ accounts

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and devices, other than for purposes of assisting with the execution of the agreed-

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upon Deletion Protocol referenced in paragraph 3(a) below.

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b.

Peeples shall be enjoined and prohibited from accessing or using, for any purpose,

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or otherwise disclosing or transmitting to any person any GEA Files, except to the

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extent necessary to assist with the execution of the agreed-upon Deletion Protocol

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referenced in paragraph 3(a) below or to otherwise coordinate with his counsel in

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the defense of this litigation.

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c.

By entering into this order, Peeples certifies that he has undertaken a good faith

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search to identify all GEA Files within his possession, custody and control and has

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provided the following to counsel for GEA:

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/////
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i.

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a complete list of all Peeples’ Accounts and Devices that contain any GEA
Files; and

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ii.

a complete list of all persons or entities to whom Peeples disclosed or

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provided the GEA Files, including, as applicable, the identity of any other

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third-party account or device on which he believes GEA Files may reside.

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d.

By entering into this order, Peeples certifies and agrees that if after the date of this

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order, he locates or has reason to know of the location of any additional GEA Files

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or any other accounts or devices containing GEA Files, he, by and through his

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counsel, will immediately notify counsel for GEA and will not access or use said

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GEA Files, for any purpose, and will not disclose them to anyone other than his

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counsel and counsel for GEA.

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e.

Within one (1) business day of entry of this order, Peeples shall deliver to his

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counsel:

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i.

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All of Peeples’ devices (e.g., laptops, desktops, iPads, tablets, flash drives)
on which GEA Files reside;

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ii.

The necessary passwords to enable one to access Peeples’ Accounts and

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Devices, including, but not limited to, the password for Peeples’ Personal

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Account.

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3.

Inspection, Preservation, and Return of GEA Files
a.

Within two (2) business days of Peeples’ delivery of those items identified in

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paragraph 2(e), Peeples will permit an agreed-upon third-party forensic computer

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consultant, Mark J. Eskridge and Digital Forensic Investigations, Inc., to begin a

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forensic inspection of Peeples’ Accounts and Devices for the purpose of: (i)

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locating and preserving GEA Files and other documents responsive to GEA’s First

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Request for the Production of Documents (the “Document Requests”) for use in

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this litigation by counsel for the Parties; and (ii) permanently deleting and

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removing all said files and documents from Peeples’ Accounts and Devices and

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Peeples’ Personal Account. Mr. Eskridge shall conduct these activities in
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accordance with the agreed-upon Deletion Protocol located in Exhibit A to the

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joint consent order for preliminary injunction (Doc. No. 39-2), and his forensic

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inspection pursuant to the Deletion Protocol shall continue until completed.

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Peeples shall cooperate with Mr. Eskridge as reasonably necessary to execute the

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Deletion Protocol.

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b.

Upon completion of the Deletion Protocol, the located GEA Files will be deemed

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returned to GEA and located documents responsive to GEA’s Document Requests

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shall be deemed produced to GEA in accordance with Rule 34(b) of the Federal

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Rules of Civil Procedure. Disputes regarding whether a particular file belongs to

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GEA or a particular document is responsive to GEA’s Document Requests and,

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therefore, is subject to deletion from Peeples’ Accounts and Devices will be

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addressed by an informal discovery conference pursuant to the standard

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procedures for United States Magistrate Judge Erica P. Grosjean.

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c.

All procedures set forth in paragraph 3 and execution of the Deletion Protocol in

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Exhibit A shall be conducted under the auspices of the Stipulated Protective Order

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(Doc. No. 24).

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d.

GEA shall pay all fees, costs, and expenses for the third-party consultant to locate,

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preserve, and return the GEA Files and produce other documents responsive to

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GEA’s Document Requests pursuant to the foregoing procedure and Exhibit A.

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4.

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this case.
5.

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This order shall remain in effect until entry of final judgment or other final resolution of

The parties agree to waive any requirement that a bond be posted to secure this consent
order for preliminary injunction.

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The September 5, 2018 hearing for the motion for preliminary injunction is vacated and
removed from the court’s calendar.

IT IS SO ORDERED.
Dated:

August 24, 2018
UNITED STATES DISTRICT JUDGE
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