Google Inc. v. American Blind & Wallpaper Factory, Inc.

Filing 243

Attachment 21
Declaration of Ajay S. Krishnan in Support of 238 MOTION for Sanctions Notice of Motion and Motion for Terminating, Evidentiary, and Monetary Sanctions Against ABWF for Spoliation of Evidence filed byGoogle Inc., Google Inc.. (Attachments: # 1 Exhibit A# 2 Exhibit B# 3 Exhibit C# 4 Exhibit D# 5 Exhibit E# 6 Exhibit F# 7 Exhibit G# 8 Exhibit H# 9 Exhibit I# 10 Exhibit J# 11 Exhibit K# 12 Exhibit L# 13 Exhibit M# 14 Exhibit N# 15 Exhibit O# 16 Exhibit P# 17 Exhibit Q# 18 Exhibit R# 19 Exhibit S (part 1)# 20 Exhibit S (part 2)# 21 Exhibit T# 22 Exhibit U# 23 Exhibit V# 24 Exhibit W# 25 Exhibit X)(Related document(s)238) (Krishnan, Ajay) (Filed on 12/26/2006)

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Google Inc. v. American Blind & Wallpaper Factory, Inc. Doc. 243 Att. 21 Case 5:03-cv-05340-JF Document 243-22 Filed 12/26/2006 Page 1 of 21 EXHIBIT T Dockets.Justia.com Case 5:03-cv-05340-JF Document 243-22 Filed 12/26/2006 Page 2 of 21 Case 2:06-cv-13576-AC-SDP Documen~~ Filed 08/10/2006 Page 1 of 20 Rec6p5NuniD ~ 0 ei t "'~ d5'Case: 2:06-c:v-13516 Assigned To: Cohn, Avern Referral Judge: Pepe, Steven 0 Filed" 08".10~2006 At 10:27 AM cmp .AMERICAN BLIND AND WALLPAPER FA nORY, lNC v. KATZMAN (TAM) UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF MICHIGAN AMERICAN BLIND AND W ALLP APER FACTORY, INC., Plaintiff, v. STEVE KATZMAN, JURY TRIAL DEMANED Defendant. SCOTT A. MACGRIFF (P55864) DICKINSON WRIGHT PLLC Attorneys for Plaintiff 500 WOQdwardAvenue, Suite 4000 Detroit, Ml48226 (313) 223-3477 Emai1: smacgrff~d1ckinsonwright.com COMPLAINT Plaintiff, American Blind and Wallpaper Factory, Inc. ("American Blind"), by and through its undersigned counsel, as and for its complaint against Steve Katzman ("Katzman"), states as follows: INTRODUCTION 1. This action arises from Katiniaii's improper and intentional taking, destmction, disclosure, and use of American Blind's personal property and proprietary infonnatioii following his resignation as American Blind's CEO. By and tlrougl these actions, Katzman willfully breached his Employment Agreement with American Blind and violated various statutes designed to prevent conduct such as his. Accordingly, American Blind seeks money damages and a preliminary injunction to còmpensate it .md enjoin Katzman from using Americáll Blind's Case 5:03-cv-05340-JF Document 243-22 Filed 12/26/2006 Page 3 of 21 Document 1 Filed 08/10/2006 Page 2 of 20 proprietary infomiation in the formation of his new company, Nationwide Blinds & Wallpaper Factory, Inc. THE PARTIES 2. Amercan Blind is a Delaware corporation with its principal place of business at 909 North Sheldon Road, Plymouth, Michigan. 3. Amercan Blind is the largest direct to customer retailer of window treatments and wall coverings in the UlÙted States and on the Tiikmet- American Blind, through its predecessor companies, has been in the home decorating business for over a half century. 4. On infOffiation and belief, Steve Katzman is a Michigan citir.en and resident who resides at 6531 Pembridge Hil, West Bloomfield, Michigan. JURISDICTION AND VENUE 5. Jurisdiction is proper in this Comi pursuant to 28 U.S.c. § 1331 heeause this action raises questions under federal law. This Court has supplemental jurisdiction over American Blind's state law claims pursuant to 28 U.S.C. § 1367(a). 6. Venue is proper in this Court pursuant to 28 U.S.C. § 1391(b) because Katzman is a resident of this judicial district and because the acts and omissions giving underlying this action occurred substantially in this judicial district. FACTS COMMON TO ALL COUNTS 7. In 1998, Katzman became American Blind's Chief Executive Offcer. 8. On June 5, 2000, American Blind and Katzman entered into an Amended and Restated Employment Agreement, under which Katzman was to serve as CEO for ill additional three years (the "Employment Agreement"). (A copy of the Employment Agreement is annexed -2- Case 5:03-cv-05340-JF Document 243-22 Filed 12/26/2006 Page 4 of 21 Document 1 Filed 08/10/2006 Page 3 of 20 as Exhibit A to the Affidavit of Joel Levine, datcd August 9, 2006 and l1ed in support of American Blind's Motion for a Temporary Restraining Order and Preliminary Injunction.) 9. Paragraph 11 (a) of the Employment Agreement contains a provision forbidding Katzman to use American Blind proprietary information for his own personal benefit or for the benefit of anyone other than American Blind without American Blind's consent following tennination of Katzman's employment at American Blind, and forbidding him to do so while eniployed at American Blind absent his good-faith belief that doing so is necessary or desirable to fulfill his duties as CEO. 10. Paragraph li(b) of the Employment Agreement contains a provision forbidding Katzman to retain any confidential American Blind records upon "his termination from American Blind, and requiring him to promptly retum to Amercan Blind siich records upon his temiiiiation. ii. On September 18, 2003, Americ,il Blind and Katzman renewed the Employment Agreement and extended thetenn of his tenure as CEO through Deccmber 31, 2005. 12. Beginnng on January 1, 2006, pursuant to agreemcnt with American Blind, Katzman continued to serve as American Blinds CEO on a month-to-month basis, receiving the same salary and benefits as set forth in the Employment Agreement. 13. On February 14, 2006, Katzman executed an Employee Hardware Loan Agreement with AmerÌcan Blind, which obligated Katzman to return) upon his deparure from American Blind) the company laptop computer and related accessories that American Blind fumished for him, among other things (the "Hardware Agreement"). 14. At approximately 4:30p.m. on May 18) 2(06) Katzman and American Blind's CFO Gerald Curran participated in a telephone conference from Katzman's offce at American -3- Case 5:03-cv-05340-JF Document 243-22 Filed 12/26/2006 Page 5 of 21 Case 2:06-cv-13576-AC-SDP Document 1 Filed 08/10/2006 Page 4 of 20 Blínd. At this time, various property of American Blind, including files, documents, records, electronic data, computer fies, and other proprietary infbnnation was located in Katzman's onice and on the two desktopcOtnputers also located in his offce (the "Company Property"). 15. Later that evening on May 18, 2006, Katzman voluntarily resigned from American Blind. 16. At approximately 8:00 a,m. on the morning of May 19,2006, Joel Levine, who was chosen to replace Katzman as CEO, cntcrcd Katzman's former office at American Blind and discovered that the Company Property that was present only the day before was missing from Kalzman's offce. 17. On or about May 19, 2006, Greg Rupprccht, American Blind's Vice President or Technical Operations, inspected the two desktop computers that were in Katzman's ollcc at American Blind and discovered that all electronic fies (emails and documcnts) had been erased from those computers. 18. On information and belief, Katzman erased thc contents of the American Blind desktop computers in order to conceal his wrongful conduct, including, hut not neccssarily limited to, retaining American Blind proprietary information following his deparure from American Blind; using American Blìnd proprietary informatÍon to star a competing business; uiid destroying Amercan Blind files, data, and other proprietary in formation. 19. On May 19, 2006, American Blind demanded that Katzman return the Company Property by 5:00 p.m. on May 22, 2006. . 20. On or about May i 9, 2006, Katzman's access to the American Blind's Virtual Private Computer Network ("VPN") was discontinued. -4- Case 5:03-cv-05340-JF Document 243-22 Filed 12/26/2006 Page 6 of 21 , ase 2:06-cv-13576-AC-SDP Document 1 Filed 08/10/2006 Page 5 of 20 21. On May 19, 2006, American Blind leamed that Katzman had been communicating with cerain vendors and creditors of American Blind, including, but not limited to, First Data, Woodland Blinds, and Prestige Manufacturing, following Kat:t.man'g resignation. On infonnation and belief, American BEnd believes that Katzman falsely indicated or implied that Ameiican Blind was in financial distress. 22. On May 19, 2006, American Blind was also advised that following Katzman's communication with First Data, an entity who processed American Blind's credit card, that First ~ Data had put a "hold" on $750,000 of American Blind's credit, leaving American Blind with a cash shortfall and forcing it to secure a loan in that amount at an unfavorable interest rate. 23. On June 5, 2006, Katzman infonned counsel for American Blind that he was going to retur a disk to American Blìnd containing 4,368 company-related e-mails. Kat1.man also infom1ed American Blind's counsel that he was forwarding to his personal attorney a copy of the disk for safekeeping, "in the event a dispute arises where (sic J the integrity of the information becomes important." 24. Katzman further stated in his June 5, 2006 correspondence that he was in the process of reviewing over 15,000 electronic files and documents he had tahm from American Blind so that he could remove any "personal" items before sending them to American Blind. 25. Katzman also stated in his June 5, 2006 correspondence that as soon as he complcted his review of the files and documents, he would rorward to American Blind a disk containing all corporate records that he had archived. 26. On or about June 12, 2006, lIma Kline, American Blind's Vice President of Human Resources, resigned from American Blind. -5- Case 5:03-cv-05340-JF Document 243-22 Filed 12/26/2006 Page 7 of 21 ase 2:06-cv-13576-AC-SDP Document 1 Filed 08/10/2006 Page 6 of 20 27. On June 12, 2006, American Blind received a disk from Katzman, which purportedly contained all ofthe company-related emails. 28. Byemaíl dated June 12,2006, Katzman advised cotusel for American Blind that he was stíl working to asscmble the electron1c mes and documents dtJ1ianded by American Blind, and that he intended to send the remaining fies in his possession that week. Katzman acknowledged in this emaÍl that he was requircdi pursuant to paragraph 11 (b) of the Employment Agreement, to return to American Blind all documents and records in his possession containing proprietary infonnation. 29. Katzan also stated in his June 12, 2006 email that he would maintain the integrity ofthe American Blind proprietary infonnation in his possession, and that he intended to comply with the nondisclosure requirements set forth in paragraph l1(a) or the Employment Agreement. 30. By email on June 14,2006, Katzman advised counsel for American Blind that he was retuming all company emails and documents that were archived on his home computer. Katzman furter stated that he had already provided a copy of aU such fies to his attomey fbr safekeeping, ''In the event a dispute arises where thc integrity of the information becomes important." Katzman also stated that he would not personally retain a copy of thcse files, and that neither he nor anyone acting on his behal l would access infomiation contained in those mes for any purpose forbidden by the Employment Agreement. 31. On June 21, 2006, counsel for American Blind received a disk from Katzman purportedly containing American Blind's electronic files and documents. 32. Also on June 21, 2006, counsel for American Blind demanded that Katzman return the American Blind company laptop computer and related accessories, which Katzman -6- Case 5:03-cv-05340-JF Document 243-22 Document 1 Filed 12/26/2006 Page 8 of 21 Filed 08/10/2006 Page 7 of 20 was required to return under the HardwarcAgrccmcnt. Amcrican Blinds counsel demanded the retuTT of the computer by 5:00 p.m. on June 22,2006, 33. Thereafter, Katzman reluIled his laptop computer to Anierican Blind. 34. Following its return, Greg Ruppert inspected the returned laptop and discovered that the entire contents of the laptop including all electronic data, documents, and files - had been erased from it. 35. On information and belief, Katzman erased the contents of the American mind laptop computer in order to conceal his wrongful conduct, includiiig, but not necessarily limited to, retaining American Blind proprietary information tòllowing his deparure from American Blind; using American Blind proprietary information to star a competing business; and destroying American Blind fies, data, and other proprietary information. 36. On July 17, 2006, Katzman sent an cmail mcssage to the American Blind emml address of Imia Kline attaching a spreadsheet containing detailed information about American Blinds' competitors, which spreadsheet had been developed by and belonged to American Blind (the "Competitive Matrix"), and requesting that KEne add additional information to the Compl:itive Matrix. 37. On information and belief, both prior to and after his July 17 email addressed to Kline, Katzman was using the Competitve Matrix to aid in his development of a new business, called Nationwide BEnds & Wallpaper Factory, Inc. ("Nationwide"), which would compete with American Blind. 38. On July 21, 2006, Katzman sent another email message to Kline's American Blind email address, attaching a red-lined version of American Blinds employee handbook (the "Employee Handbook") which contained numerous edits to the handbook. -7- Case 5:03-cv-05340-JF Document 243-22 Filed 12/26/2006 Page 9 of 21 Document 1 Filed 08/10/2006 Page 8 of 20 Based on the edits made to the Employee Handbook, it is clear that both pri.or and subsequent to his July 21 emaIl addressed to Kline, Katzman was using the Employee Handbook to aid in his development of Nationwide. 40. On July 21, 2006, Katzman again forwarded the Competitive Matrix to Kline;s American Blind emal1 address. 41. Thereafter, American Blind immediately conducted a thorough search or its computer systems and discovered that 22 attempts - all unsuccessful - had heen made since Katzman's resignation to log on to Amercan Blind's Virtual Private Network (VPN) from Katzman's IP address using Katzman's, Kline's; and Rupprecht's passwords. 42. Upon learing of the repeated attempts made by Katzman to log on to American Blind's VPN, American Blind personnel spent many hours evaluating American Blind's network and having each and every American Blind employee go through the process or changing his or her passwords. 43. On infonnation and belief, Katzman is preseritly utilizing American Blind confídential and proprietary infomiution and property in connection with his effoits to star and operate Nationwide. FIRST CAUSE OF ACTION VIOLATION OF 18 V.S.C. & l030(a)(4) 44. American Blind realleges and hereby incorporates paragraphs i through 43 of this Complaint above, as fully as if set forth here verbatim. 45. The computers Katzman accessed in connection with his efforts to obtain American Blind confidential and proprietary inrormation, including, hut not necessarily limited to, computers owned by American Blind, are "protected computers" as defined by 18 U.S.c. § 1030(e)(2) beeause they arc used iii interstate and foreign commerce and communication. -8- Case 5:03-cv-05340-JF Document 243-22 Filed 12/26/2006 Page 10 of 21 . Case 2:06-cv-13576-AC-SDP Document 1 Filed 08/10/2006 Page 9 of 20 46. Katzman accessed those computers without authorization from American mind or in excess of any authorization granted to him by American Blind. 47. Katzman accessed those computers knowingly and with the intent to defraud Ameriean Blind. 48. As a result of Katzman's unauthorized aecess, or access in excess of authorization, to those eomputers, Ka.t:iman furthered his intended fraud and obtained valuahle American Blind confidential and proprietary Înfomiatioii, including, but not necessarily limited to, the Competitive Matrix and the Employee Handbook. 49. American Blind has been damaged as a direct result of Kat7.man's conduct in excess of $5,000.00, and tIie value of the confidential and proprietary information wrongfully obtained by Katzman exceeds $5,000.00. SJiCONDCAUSR OF ACTION VIOLATION OF 18 V.S.C. § 1030(a)(5) 50. American Blind realleges and hereby incorporates paragraphs 1 through 49 of this Complaint above, as fully as if set forth here verbatim. 51. The computers Katzman accessed in connectìon with his efforts to obtain American Blind conlldential and proprietary information, including, but not necessarily limited to, computers owned by American Blind, are "protected computers" as deflned hy i 8 U.S.C. § 1030(e)(2) because they are used in interstate and foreign commerce and communication. 52. On Infomiation and belief: Katzman knowingly used a program to erase the entire contents of those computers. 53. On Infomiation and beliet: Katzman knowingly caused the transmission of a program, infonn ati on, code, or coniniand to those computers which caused damage to those computers in an amount exceeding $5,000.00. -9- Case 5:03-cv-05340-JF Document 243-22 Filed 12/26/2006 Page 11 of 21 ase 2:06-cv-13576-AC-SDP Document 1 Filed 08/10/2006 Page 10 of 20 THIRD CAUSE OF ACTION VIOLATION OF 18 U.S.c. § 2701 54. American Blind realleges and hereby incorporates paragraphs 1 though 53 of this Complaint above, as fully as if set fort here verbatim. 55. Each of American Blind's computer is a "làci1ity through which an electronic communication service is provided", pursuant to 18 U.S.c. § 2701 (a)(I). 56. On infonnation and belief, Katzman repeatedly knowingly and intentionally accessed the American Blind computer's without authorizatíoii. 57. On infomiation and belief, Katzman repeatedly knowingly and intentionally accessed the American Blind Network in excess olhis authorization. 58. Through his unauthorized access, and through his access H1 excess of authorization, Katzman obtained maltered electronic communications while they wcre in electronic storage in the American Blind Network. 59. American Blind has beei, damaged as a direct result of Katzman's conduct. FOURTH CAUSE OF ACTION VIOLATION OF M.C.L. & 445.1901 ET SEO. 60. American Blind reallcges and hcreby ineorporates paragraphs 1 through 59 olthis Complaint above, as fully as if set forth here verbatim. 61. The Competitive Matrix and the Employee Handbook are independently economically valuable to American Blind because they are not readily available through proper means to anyone other than America.n Blind who could obtain economic value though their disclosure or use, and because they arc thc subjcct of reasonable efforts by American mind to maintain their secrecy. -10- Case 5:03-cv-05340-JF Document 243-22 Filed 12/26/2006 Page 12 of 21 ase 2:06-cv-13576-AC-SDP Document 1 Filed 08/10/2006 Page 11 of 20 62. The Competitive Matrix and the Employee Handbook are trade secrets as defined by M.C.L. § 445.1902(d). 63. Following tennination of his employment at American Blind, Katzman acquired the Competitive Matrix and the Employee Handbook by improper means. 64. Katzman knew, or had reason to know, that he was not authorized to acquire the Competitive Matrix or the Employee Hanùbook following termination of his employment at American Blind. 65. Katzman knew~ or had reason to know~ that he used improper means iii acquiring the Competitive Matrix and the Employee Handbook following temiination of his employnienl at American Blind. 66. American Blind has been damaged as a direct result of Katzmails conduct. F1FTH CAUSE OF ACTION VIOLATION OF M.C.L. ~ 445.1901 ET SEO. 67. American Blind realleges and hereby incorporates paragraphs 1 through 66 ofthis Complaint above, as fully as if set forth here verbatim. 68. The Competitive Matrix and the Employee Handbook arc independently, economically valuable to American Blind because they are not readily available through proper means to anyone other than American Blind who could ohtain economic value through their disclosure or usei and because they are the subject of reasonable efforts by American Blind to maintain their secreey. 69. The Competitive Matrix and the Employee Handbook are trade secrets as defined by M.C.L. § 445.1902(d). 70. Katzman acquired the Competitive Matrix and tho Employee Handbook by 1I1proper means. -11- Case 5:03-cv-05340-JF Document 243-22 Filed 12/26/2006 Page 13 of 21 ase 2:06-cv-13576-AC-SDP Document 1 Filed 08/10/2006 Page 12 of 20 71. Katzman used and disclosed the contents of the Competitive Matrix and thc Employee Handbook without Amerícan Blinds consent, to American Blind's detriment, ,md for Katzman's own commercial advantage. 72. Katzman's use and disclosure of the contents of the Competitive Matrix and the Employee Handbook occurred with Kat?:Tlan's Ihl1 knowledge that he had acquired the Competitive Matrix and the Employee Handbook through improper me~U1S. 73, Katzman's use and disclosure of the contents of the Competitive Matrix and the Employee Handbook occurred with Katzman's full knowledge that he had a duty to keep the contents of the Competitive Matrx and the Employee Handbook secret. 74. American Blind has been damaged as a direct result of Katzman's conduct SIXTH CAUSE OF ACTION CONVERSION 75. American Blind realleges and hereby incorporates paragraphs 1 through 74 of this Complaint above, as fully as ilset forth here verbatim. 76. The Employment Agreement and the Competiive Matrix arc the personal property of American Blind. 77. Katzman improperly, without American Blind's consentj and wrongfully acquired the Employment Agreement and the Competitive Matrix fÌom American Blind and utilized them follùwing terination of his employment at American Blind. 78. On infomiation and helief: Kat7.mari improperly, without American Blindjs consent, and wrongfully acquired additional personal propeity of American Blind and utilized such property following tem1ination olhi~ employment at American Blind. 79. Katzman wrongfully exerted distinct acts or dominion ovcr the Competitive Matrix and the Employee Handbook. u 12- Case 5:03-cv-05340-JF Document 243-22 Filed 12/26/2006 Page 14 of 21 ase 2:06-cv-13576-AC-SDP Document 1 Filed 08/10/2006 Page 13 of 20 80. On infonnation and belief, Katr.man wrongfully exerted. distinct acts of dominion over additional personal property of American Blind, 81. American Blind has been. damaged as a direct result of Katz.man' s conduct. SEVENTH CAUSE OF ACTION TORTIOUS INTERFRRENCE WITH A BUSINESS EXPECTANCY 82. American Blind realleges and hereby incorporates paragraphs 1 through 81 of this as ifset forth here verbatim. Complaint above, as fully 83- American Blind had ongoing business relationships and expectancies with its customers, vendors, and creditors, including, but not limited to, First Data. 84. Katzman had knowledge or American Blind's businestl relationships and expectancies with its customers, vendors, and creditors, including, but not limited to, FiTst Data. 85. Katzman intentionally, with rnalìce, without justification, and wrongfully interfered with American Blind's business relationships and expectancies with its customers, vendors, and creditors, including, but not limited to, First Data, by, inter alia, falsely implying to them that Ameriean Blind was in financial distress. 86. As a direct result of Katzman's interference, American Blinds business relationships and expectancies with its customers, vendors, and creditors, including, but not limited to, First Data, were breached or tenninuted, 87. American Blind has been damaged as a direct result of Kalzniun 's conduct. EIGHTH CAUSE OF ACTION BREACH OF PARAGRAPH 1 t (n) OF THE EMPLOYMENT AGREEMENT 88. American BEnd realleges and hereby iiicorporates paragraphs 1 through 87 of this Complaint above, as fully as i r set lorth here verbatim. -13- Case 5:03-cv-05340-JF Document 243-22 Filed 12/26/2006 Page 15 of 21 ase 2:06-cv-13576-AC-SDP Document 1 Filed 08/10/2006 Page 14 of 20 89. American Blind and Katzman were competent to enter into the Employment Agreement. 90. The Employment Agreement consists of proper subj ect matter for a contract. 91. The Employment Agreement provided for legal consideration to both American I3ind and Katzman. 92. American Blind and Katzman both agreed to supply thc consideration as stated in the Employment Agreement. 93. American Blind and Katzman were oblígated to perform as stated 10 the Employment Agreement 94. The Employment Agreement constituted a valid contract betwecn AmerÌcan B1índ, on the one hand, and Katzman, on the other hand. 95. Katzman breached paragraph ll(a) or the Employment Agreement by lIsíng American Blind proprietary ínfol1nation for his own benefit and for the benefit of Nationwide without American Blínd's consent following terminaIÍon of Katzman's employment at American Blind. 96. Katzman breached paragraph Ii (a) of the Employnient Agreement by US111g American Blind proprietary infbffiation for his own benefit and for the benefit of Nati,onwidc while still employed at American Blind. 97. American Blínd has been damaged as a direct result of Katzman's breach of the Employment Agreement. NINTH CAUSE OF ACTION BREACH OF PARAGRAPH l1(b) OF THE EMPLOYMENT AGREEl\ENT 98. American Blind realleges and hereby incorporates paragraphs 1 through 97 of this Complaint above, as fully as if set forth here verbatiin. -14- Case 5:03-cv-05340-JF Document 243-22 Filed 12/26/2006 Page 16 of 21 Document 1 Filed 08/10/2006 Page 15 of 20 99. American Blind and Kat?:man were competent to enter into the Employment Agreement. 100. The Employment Agrcement consists ofpToper subject matter for a contract. 101. The Employment Agreement provided for legal consideration to both American Blind and Katzman. 102. American Blind and Katzman both agreed to supply the consideration as stated in the Employment Agreement. 103. Amcrican Blind and Katzman were oblìgated to perform as stated In the Employrnent Agreement. 104. The Employment Agrcement constituted a valid contract between American Blind, on the one hand, and Katzman, on the othcr hand LOS. Katzman breached paragraph 1 l(b) of the Employment Agrcement by retaining confidential American Blind rccords upon teni1ination of his employment at American Blind. 106. Katzman breached paragraph i i (h) of the Employment Agreement by failing to promptly return confidential American Blind records upon temiination of his employment at American Blind. 107. American Blind has been damaged as a direct result of Katzman's breach of the Employment Agreement. TENTH CAUSE OIl' ACTION SEEKING INJUNCTIVE RELIEF 108. American Blind realleges and hereby incorporates paragraphs 1 through 107 of this Complaint above, as fully as if set forth here verbatim. 109. American Blind has a clear and ascertainable interest in protecting its business and its goodwil ilmong its vendors, customers; distrihutoTs, and creditors. -15- Case 5:03-cv-05340-JF Document 243-22 Filed 12/26/2006 Page 17 of 21 ase 2:06-cv-13576-AC-SDP Document 1 Filed 08/10/2006 Page 16 of 20 i i o. No remedy at law can properly protect or compensate American Blind for the damages that will be caused by Katzman's wrongful use or American Blind's confidential and proprietary infom1ation. 111. If an injunction is not issued, Katzman wilt cause irreparable hai to American Blind's business. 112. American Blind is likely to prevail at trial on the merits of its claims against Kah:niun. PRAYER FOR RELIEF WHEREFORE, Plaintiff, American Blind, demands judgment as follows: (A) That on American Blimi's First Cause of Actionj Katzman be adjudged to have violated) 8 U.S.C. § 1030(a)(4)j and that American Blind recover damages from Katzman in an amount to be determined at trial; (B) That on American Blind's Second Cause of Aet10nj Katzman be adjudged to have violated) 8 U.s.C. § ) 030(a)(5)j and that American Blind recover damages frori1 Katiman ¡nan amount to be determined at trial; (C) That on American Blind's Third Cause of Action, Katzman be adjudged to have violated 18 U.S.c. § 2701, and thatj pursuant to i8 U.S.C. § 2707, American Blind reCover damages from Katzmanìn an amount to be detennined at trial, and that American Blind recover from Katzman the amount of its attorneys' fces incurred in bringing this action; (D) That on American Blind's Fourt Cause of Action, Kattman be adjudged to have violated M.C.L. § 445.1901, and that American Blind recover damages from Katzman in an amount to be detennined at tri.al, and that American Blind obtain injunctive relief as set forth below in paragraph (J); -16- Case 5:03-cv-05340-JF Document 243-22 Filed 12/26/2006 Page 18 of 21 Document 1 Filed 08/10/2006 Page 17 of 20 (E) That on American Blind's Fifth Cause of Aetion, Katzman be adjudged to have violated M.C.L. § 445.1 901, and that AmerÎCan Blind rccover damages from Katzman in an amount to be detennined at trial, and that American Blind obtain injunctive relief as set forth below in paragraph (J); (F) That on American Blind;s Sixth Cause of Action, Katzman be adjudged to have committed conversion; and that American Blinù recover damages from Katzman in an amount to he determined at trial; (G) That on American Blli1d's Seventh Cause of Action, Katz:nian be adjudged to have tortiously interfered with American Blind's business expectancy, and that American Blind reeovcr damages from Katzman in an amount to be detennined at trial; (H) That on American Blind;s Eighth Cause of Action, Katzman he adjudged to have breached Paragraph 1 l(a) of the Employment Agreement; and that American Blind recover damages from Katzman in an amount to be detemiIned at trial; (I) That on Amei1can Blind's Ninth Cause of Action, Katzman be adjudged to have breached Paragraph 1 l(b) of the Employment Agreement; and that American Blind recover damages from Katzman in an amount to be determined at trial; (1) That on American Blind's Tenth Cause of Action, this Court grant injunctive relief in the form of an order prohibiting Katzman and any persons or entiies acting on behalf of, or at the requcst of, Katzman, including, but not limited to Nationwide Blínds & Wallpaper Factory, Inc., from using any of American Blind's conl1dential and proprietary infomiation, including, but not necessarily limited to, the Competitive Matrix and the Employee Handbook, for any purpose, and an order requiring Katzman to rettU11 all of American Bllnds proprietary, confidential and personal property immediately, including but not limited to an external hard -17- Case 5:03-cv-05340-JF Document 243-22 Filed 12/26/2006 Page 19 of 21 Document 1 Filed 08/10/2006 Page 18 of 20 drive and all informatìon thereon; and (K) That this Court grant such other, further, and di rferent relief to American Blind, including costs and reasonable attorney fees, that this Court deems just and proper. BY: GRIFF P55864) SCOTT A. MAC Attorneys tòr Plaintiff 500 Woodward Avenue Suite 4000 ~(( Detroit, MI 48226 (313) 223-3477 Email: smacgrifffÉdickinsonwright.com Date: August t ~ 2006 DDTROIT 243Jb-8 95ililS6111 -18- Case 5:03-cv-05340-JF Document 243-22 Document 1 Filed 12/26/2006 Filed 08/10/2006 Page 20 of 21 Page 19 of 20 CIVIL COVER SHEET S 44 civil cover .heet and the infonnalion (:lllained hciiin neitheneplace niiuupplemeni ii filin.g IId service of.¡ileadings or other papers as required by hlW, except us priivided y lociil'lçs of court. this form approved by the Judieiiil Confcrnm;e of the United Slalls in Sepl.mlx 1974, is required for the use oflhe Clerk of COUll for ihe putpse ofmitiating In" civil do-ket sh~el, I.SEE INSTRUCTONS ON TIE REVERSE OF THE FORM.) I. (a) PLAINTIFFS DEFENDANTS STEVE KATZMAN AMERICAN BLIND AND W ALLPAPERFACTORY, INC. (b) County of Residence of Fint Lislc:" Plantiff WAYN (EXCEPT IN U.S. PLAINIFf C,l~ ( 0.3 CDunty of Rc:sideni; of Firs i.is~d Defendat OAKD (IN U.S. PI...INTIFf CASES ONLY) NOTE; IN LAND CONDEMNA TlON CASE!;, I,SE THE 1.0(:/\ TION OF THE LA INVOLVED. (c) Attorney's (Finn Nat, AddtcSl,;ud r~l~pho"" Numbe) AlIamey! (If Kn) Scali A. MscGritf(PSS864) SOO Woodwar Avcnue, Sui ie 40 ILL. CITIZENSHIP OF PlUCIP AL P ARTIES(Plaoo an "X" in 011 £lox for PlAint; IT (For Divem~. ~_..- "-,.., nn~ On. fkx for Defcn~i Ciii:iin ofThi. Si II. BASIS OF JUS~DC (PI~it"X"inOoBoxOnIY) Ü 1 U.S.Oovlll' )(3 F QiOD pl.,niitY (U.s. OoverDnl Not 0 P;i) Case: 2:06-cv-13576 Assigned To: Cohn, Avern i: 2 U.S. Govccni i: 4 Divciiy Dfflndani (InOi_ Cllizmlip orl'lI. ¡n Ite Il) iv. NATURE OF SUIT T Citizen of i\itl Ciiizeii or Subj"' Forei Co h Referral Judge: Pepe, Steven D Filed: 08-10-2006 At 10:27 AM cmp AMERICAN BLIND AND WALLPAPER FA CraRY, INC V. KATZMAN (TAM) 'lH o I l 0 Inmwuc LJ 120 Miiiie o 110 MiU", Acl o 140 N~¡oti"¡l~ In$ll'iionl i: I~O R,,ovcr ofOvel1~ym.nl PER.;QI'AL INJURY LI 3 I 0 AiipJln~ LJ 31 ~ Airliie Prii 0 LJ CJ l.iabilil) 320 A..ui~ Libel 8i i: i: r¡;RSONAL INJURY 362 Pe",1I i,'jii- Mcd. MiJpioo 36~ P..""nollnjui . LI b 10 Agricultue LI 620 Olr foo öz Dt LI 62. Dng Relite Sei," i: 422 Appc28 use 158 CJ 423 Witlilw.i 28 use 1S7 LI 4Q SIo~ Rc.ppot'on"ii o 4 I 0 Artitrl i: 430 B.nk. ild 8anng of Prpcny 2 I use aU LI 630 Liquor LaW! i: 450 ç"".o. &: Eiiförcemont of Judgmenl iJ 151 Mi:ioil Act slanr 0 Proot Liability 368 /\.l;;Ió"P.",nil i: 460 Del"rtlinn o 410 Raketeei !nfl..nced and Cornpt O.giiizntioni (J ó4 R.R. ii r nl i: 650 Airline RO¥. 330 F*"I Ewployeril lIluiy I'çt Liability o 152 Rcço.cr of Otfauliii Srndoot LoOl! (Exo!. VotorUM) :: 1s3 kooövery ofOvcrpaymnt 6rv.fà...' a.nofii! Liabilty J4D Mariu L.iabÎlry i: 66 Occuponal p~RSNAL PROPERTY i: J70 Oil Froud i: 371 TRlth in Le~illI i: 380 Oihe Pel1nIl SafetylHoaih CI 690 Ot.. i: 480 Conliit Credit i: 490 Cab¡clS~t TV lJ J4S Mar~ Prodi LI LI LI 350 Motor v.hicl. rJ 8 i 0 Sal~ctiw Service a as/) SecuritiaiiCommodilÎ.:I LI LI 1 I 0 F~ir Lo, St""dt Act 720 LaborlMgmt. Reliiofl ç'c~ilge 875 e",wmcr Ch.lIlliigt use J410 o 1i; SllJkhoid...' Sui", o 190 Other C"nitI 355 Motor Vchi.l~ Produci Liobilty i: Prpe D~ni¡c 385 Prpert Domn¡e Prouot Liabilty o 195 ç"ntra~' produc. Liabiliiy 360 Otbar Felln.1 J~' i: 730 LaborIgmt.RepoT1iTll 89 !: l '1 frnnchi.~ RI!AL PROPERTY Ii Oi~io!1I Aot PRISONER N T 441 Voiii o 21 I) I.,md Condoltiiön i: 220 Fo,,,lOlur. 510 ModOllo Viilc ci 442 Empi"i-nl LI 443 Hou.inil Seici.e 0 LI 140 Railway Lill. Acr he St~tulili' Aci¡on~ 1 Agrcultuiii Aot¡ . 892 ""onumie Siabilization Act i: 790 QlMr Labo Litigation 191 EmpL. R~t. In.. S""ity Act 893 I!nvironmcnlfl M...t' 894 Eneri AlIoc.lion Act 895 Freedom oflnfu.tiòi ~ o 2Ji) R~nl t._1i Ej.......1 i: 240 Tort to l.d 0 44 W.lfo AocomiodtioM d 1l.~~iU Cgrpui: i: 290 All Other Re.1 Prop"it i i: 245TortProdiitLiubility I) 44' A~r. wlDliiilties- tl i: S30C:~.. 535 Death I'iilty 54 Moidaii & Oihor Aot (j 900Appial öf F.. DciCnnin.i,M t:ndor ¡¡qua Ac."" Ul Ju!iico a i: EinplO)onl ci ssG Civil R1ShU 44 Arnr. w/Di..biliitli . i: 5H Pri""n Condilon i: Oter 44 Other Civil Rij¡hli 9~0 Con.tiniion~iity "r Stat. Starne.. IGIN CJ Removed rrom Rem""dcd rroin Reinataied ar anolh~r distrctCJ 7 Judge lrll1 i 0 3 0 4 0 5 Trinsferrcd from ¡j 6 Multíd¡strici Magí5tric CrBhiY::S :~ì~ St~ñ~~ wti~ Yt. ~.ft!~g ~ÎrJltc jùrlsdlcllml statue. U:lts dl~et5lly): . i' mmications Act (Pia"" an "X" in One BoxOnly) Appeiil to Di.ir~l St i 0 A lIate Co Reo cned Li . Jud c state law 1m VI. CAUSE OF ACTION BrierQeriptionofcausc: l.olatiOn ot Computer ADl1se and lirauâ Act, vlo1atJõn of VII. REQUESTED IN COMPLAINT; VIL. RELATED CASE(S) CHECK If THIS IS A CLASS ACTION DEMAND 5 ÇrlECK. yES anl:t .:t\ianded in omplaini: UNOER F.R.C.P. 23 JURY DEMAN ii Ves No ,...l,..il..Ull.iM _: IF ANY DAn: ($o in'"'''tilO''): ,- \O~1. (n FOR ~~i".Di~~.r~I.M'\PUc. ll " l .r ;r_ . c _ OFFICE USEONLY AMOUNT APPLYING IFP JUDGE MAG, JliDúH ~£l.IHpr ~ Case 5:03-cv-05340-JF Document 243-22 Filed 12/26/2006 Page 21 of 21 Document 1 Filed 08/10/2006 Page 20 of 20 RSUANT TO LOCAL RULE 83.11 1. Is this a case that has been previously dismissed? Yes If yes, give the following information: Court: Case No.: Judge: 2. Other than stated above, are there any pending or previously discontinued or dismÎssed companion cases in this or any other court, including state court? (Companion cases are matters in which it appears substantially similar evidence will be offered or the same or related parties are present and the cases arise out of the same transaction or occurrence.) If yes, give the following information: Court: Case No.: Judge: Notes :

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