Backman et al v. Goggin et al
Filing
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ORDER denying ECF No. 7 Motion for TRO; and denying ECF No. 8 Motion for Preliminary Injunction. Signed by Judge James C. Mahan on 6/2/16. (Copies have been distributed pursuant to the NEF - JC)
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UNITED STATES DISTRICT COURT
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DISTRICT OF NEVADA
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IRVING A. BACKMAN et al.,
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Plaintiff(s),
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Case No. 2:16-CV-1108 JCM (PAL)
ORDER
v.
CHRISTOPHER M. GOGGIN, et al.,
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Defendant(s).
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Presently before the court are plaintiffs Irving A. Backman, Irving A. Backman &
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Associates, and G&B Energy, Inc.’s motions for temporary restraining order and preliminary
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injunction. (ECF Nos. 7, 8).
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I.
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Plaintiff Irving Backman, individually and through Backman & Associates, claims to have
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over thirty-five years of experience in marketing new products and business entities relating to
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emerging technologies. (ECF No. 1). Defendant Christopher Goggin claims to have designed,
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developed, and patented or has patents pending upon technology that purportedly offers a low-cost
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alternative to traditional sources of energy such as hydrogen fuel cells or lithium batteries. (Id.).
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Defendant, individually and on behalf of defendant C2, claimed that his technology, “Energy
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Bank,” was a feasible, cost-effective, and superior alternative to other energy generation and
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storage technologies.
Background
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In early 2012, the parties discussed a potential joint business venture to develop
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defendant’s Energy Bank technology. (Id.). The parties agreed that working prototypes of
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Energy Bank would be necessary to demonstrate the attributes and advantages of the
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technology to potential investors and customers. On April 20, 2012, plaintiff Backman &
James C. Mahan
U.S. District Judge
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Associates
and
defendant
entered
into
an “Agreement of
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Competition, and Non-Circumvention.” (ECF No. 1, Exh. A). Plaintiffs agreed to introduce
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Energy Bank technology to potential investors and end users, with a goal of assisting in the
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funding, development, and marketing of Energy Bank technology. Defendant agreed not to
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enter into any contracts or business arrangements with those persons or entities introduced by
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plaintiffs or those considered to be co-workers or competitors. (Id.)
Confidentiality, Non-
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In June 2012, plaintiff Backman orally agreed to provide funds to defendant for the
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purpose of building at least three Energy Bank fuel cells in different sizes and that each unit
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would be made available to plaintiff G&B and its agents for demonstration purposes. (Id.).
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Plaintiffs and defendant Goggin also discussed and agreed that they would form a new fuel cell
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company with joint ownership and profit allocation evenly divided between plaintiff Backman,
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defendant Goggin, and a third party known as the DATT Group. (ECF No. 8). The parties also
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agreed that plaintiff G&B Energy would own all of the intellectual property rights. Based upon
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these representations, plaintiffs claim that plaintiff Backman provided defendant approximately
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$1,042,965.00 for research and the development of Energy Bank. (Id.).
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On or about May 15, 2015, the parties executed a confirmation agreement similar to and
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consistent with their June 2012 oral agreement. (ECF No. 7). On July 13, 2015, defendant
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Goggin signed a patent application assignment and an intellectual property rights assignment,
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assigning to plaintiff G&B Energy all of his intellectual property rights relating to the
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provisional patent application and the patent for the invention "Hybrid Metal Fueled Fuel Cell
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and Battery." (Id.).
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Plaintiffs claim that defendants have breached these contracts by refusing to produce a
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working prototype and failing to provide any information about defendant Goggin’s progress
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in developing a working prototype. Defendants have also failed to inform plaintiffs of whether
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defendant Goggin has filed a non-provisional patent application for Energy Bank or whether the
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provisional patent application for Energy Bank has expired. Plaintiffs believe that defendant
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Goggin did not file a final patent application for Energy Bank within one year of the initial
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James C. Mahan
U.S. District Judge
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application. If that is the case, plaintiffs assert that the provisional patent has expired, violating
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both the patent application and intellectual property assignments.
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II.
Legal Standard
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Under Federal Rule of Civil Procedure 65, a court may issue a temporary restraining order
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when the moving party provides specific facts showing that immediate and irreparable injury, loss,
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or damage will result before the adverse party’s opposition to a motion for preliminary injunction
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can be heard. Fed. R. Civ. P. 65.
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“The purpose of a temporary restraining order is to preserve the status quo before a preliminary
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injunction hearing may be held; its provisional remedial nature is designed merely to prevent
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irreparable loss of rights prior to judgment.” Estes v. Gaston, no. 2:12-cv-1853-JCM-VCF, 2012
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WL 5839490, at *2 (D. Nev. Nov. 16, 2012) (citing Sierra On-Line, Inc. v. Phoenix Software, Inc.,
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739 F.2d 1415, 1422 (9th Cir. 1984)). “Thus, in seeking a temporary restraining order, the movant
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must demonstrate that the denial of relief will expose him to some significant risk of irreparable
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injury.” Id. (quoting Associated Gen. Contractors of Cal. v. Coal. of Econ. Equity, 950 F.2d 1401,
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1410 (9th Cir. 1991)).
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The Supreme Court has stated that courts must consider the following elements in determining
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whether to issue a temporary restraining order and preliminary injunction: (1) a likelihood of
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success on the merits; (2) likelihood of irreparable injury if preliminary relief is not granted; (3)
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balance of hardships; and (4) advancement of the public interest. Winter v. N.R.D.C., 555 U.S. 7,
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20 (2008). The test is conjunctive, meaning the party seeking the injunction must satisfy each
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element.
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Additionally, post-Winter, the Ninth Circuit has maintained its serious question and sliding
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scale test. See Alliance for the Wild Rockies v. Cottrell, 632 F.3d 1127 (9th Cir. 2011). “Under this
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approach, the elements of the preliminary injunction test are balanced, so that a stronger showing
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of one element may offset a weaker showing of another.” Id. at 1131. “Serious questions going to
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the merits and a balance of hardships that tips sharply towards the plaintiff can support issuance
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of a preliminary injunction, so long as the plaintiff also shows that there is a likelihood of
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irreparable injury and that the injunction is in the public interest.” Id. at 1135.
James C. Mahan
U.S. District Judge
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III.
Discussion
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Before a preliminary injunction may issue, the plaintiff must show that he will suffer an
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irreparable injury and otherwise lacks an adequate remedy at law to prevent such injury.
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“Irreparable harm is traditionally defined as harm for which there is no adequate legal remedy.”
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Arizona Dream Act Coal. v. Brewer, 757 F.3d 1053, 1068 (9th Cir. 2014).
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The mere “possibility” of irreparable harm is not enough to justify a preliminary injunction.
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As the Supreme Court made clear in Winter, “[i]ssuing a preliminary injunction based only on a
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possibility of irreparable harm is inconsistent with our characterization of injunctive relief as an
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extraordinary remedy that may only be awarded upon a clear showing that the plaintiff is entitled
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to such relief.” 555 U.S. at 22; see also Alliance, 632 F.3d at 1131 (“Under Winter, plaintiffs must
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establish that irreparable harm is likely, not just possible, in order to obtain a preliminary
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injunction.”) (emphasis omitted). The threat of irreparable harm must also be “immediate” to
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warrant preliminary injunctive relief. Caribbean Marine Servs. Co. v. Baldrige, 844 F.2d 668, 674
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(9th Cir. 1988).
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After considering the factors necessary to obtain a preliminary injunction, the court finds that
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such a dramatic remedy is premature. Plaintiffs devote one sentence to discussing why they will
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suffer irreparable injury absent a TRO and preliminary injunction, claiming that because
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defendants have not produced evidence demonstrating that they have developed the Energy Bank
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technology, defendants might conceal and dissipate their assets during the pendency of this action.
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(ECF No. 7). Plaintiffs’ claim is not sufficiently supported by the facts presented nor sufficiently
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argued to merit a preliminary injunction at this time.
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Furthermore, plaintiffs do not discuss and certainly have not shown that they will suffer an
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injury irreparable by the range of other available remedies at law. See Stanley v. Univ. of S. Cal,
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13 F.3d 1313, 1320 (9th Cir. 1994) (citing Beacon Theatres, Inc. v. Westover, 359 U.S. 500, 506–
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07 (1959)); Aronoff v. Katleman, 75 Nev. 424 (1959). Indeed, simultaneous to their request for a
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TRO and preliminary injunction, plaintiffs also filed a motion for a prejudgment writ of attachment
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and garnishment. A writ of attachment is appropriate “[w]here the defendant is about to give,
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assign, hypothecate, pledge, dispose of or conceal the defendant’s money or any property or any
James C. Mahan
U.S. District Judge
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part thereof and the defendant’s money or property remaining in this State or that remaining
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unconcealed will be insufficient to satisfy the plaintiff’s claim.” N.R.S. § 31.017(5). Accordingly,
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plaintiffs have failed to sustain their burden to make a clear showing that such a remedy is
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insufficient and that an injunction is necessary instead.
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While other factors for a preliminary injunction may tip in plaintiffs’ favor, none outweigh
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plaintiffs’ failure to demonstrate irreparable injury. An “injunction is a matter of equitable
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discretion” and “an extraordinary remedy that may only be awarded upon a clear showing that the
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plaintiff is entitled to such relief.” Plaintiffs have not adequately met the irreparable injury prong
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necessary for the issuance of a TRO and preliminary injunction, and, therefore, their request for
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an injunction is denied. Winter, 555 U.S. at 22, 32.
IV.
Conclusion
Accordingly,
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IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that plaintiffs’ motion for a
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temporary restraining order (ECF No. 7) and motion preliminary injunction (ECF No. 8) be, and
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the same hereby are, DENIED.
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DATED June 2, 2016.
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UNITED STATES DISTRICT JUDGE
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James C. Mahan
U.S. District Judge
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