TKC Aerospace, Inc v. Muhs

Filing 15

MEMORANDUM OPINION AND ORDER reversing the decision of the United States Bankruptcy Court for the Eastern District of Virginia and remanding the case back to the Bankruptcy court for further proceedings. Signed by District Judge Liam O'Grady on 10/16/2017. (awac, )

IN THE UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF VIRGINIA
Alexandria Division

TKC AEROSPACE, INC.,
Appellant,
Civil Action No. l:17-cv-00372

CHARLES TAYLOR MUHS,

Appellee.

MEMORANDUM OPINION AND ORDER

This matter comes before the Court on appeal from the United States Bankruptcy Court
for the Eastern District of Virginia. Appellant assigns error to the bankruptcy court's denial of
Appellant's motion for judgment on the papers. That denial was based on the bankruptcy court's
finding that collateral estoppel did not apply to a district court's grant of summary judgment that
led to the final judgment at issue before the court. For the reasons stated below, the Court finds

that collateral estoppel applies. Accordingly, the decision of the Bankruptcy Court for the

Eastern District of Virginia is REVERSED and REMANDED for further disposition consistent
with this opinion.

1. BACKGROUND

In September 2011, TKC Aerospace, Inc. (TKC) sued Charles Taylor Muhs, a former
employee, in United States District Court in the District of Alaska (the Alaska case) for theft of
trade secrets. Appellant Br. 4. In October 2011, TKC sued Phoenix Heliparts, Inc. (PHP) in the

Superior Court of Arizona for Maricopa County (the Arizona case), based on Muhs' provision of