Oldcastle, Staley, in Settlement Discussions in Trade Secret Suit
August 2, 2012

by Penny Stacey, pstacey@glass.com

Oldcastle BuildingEnvelope™ (OBE) and Jon Todd Staley, a former employee against whom the company had filed suit last year, are in settlement discussions to resolve the suit, according to court documents filed in the case. The company had sued Staley last October, alleging that he misappropriated trade secrets and other confidential and proprietary information obtained during his employment with the company.

OBE recently had motioned for partial summary judgment in the case related to two specific allegations—breach of contract and violation of the Computer Fraud and Abuse Act (CFAA). Staley had objected, and the court had set a hearing for late July to review the motion. Just a few days before the hearing was scheduled, the two parties filed a joint motion to extend the timetable set in the case—particularly the deadline of August 10 as the date before which they must conduct mediation.

"Since July 12, the parties have been engaged in renewed discussions regarding potential terms upon which the case may be resolved," write the parties in the joint motion. "Although the discussions are ongoing, the parties have made significant process in several respects."

However, the motion points out that OBE COO Mary Carol Witry recently suffered an unforeseen family-related emergency requiring her to travel out of state, which has delayed settlement discussions.

"Ms. Witry is a key decision-maker in this matter," write both the plaintiff and defendant. "She has responsibility over the portion of plaintiff's business at the center of this dispute, and the defendant deposed her on January 17, 2012. And because she was directly involved in the circumstances at the heart of this case, her participation in the ongoing settlement discussions and potential mediation is critical."

The court granted the motion, allowing the companies to proceed with mediation until August 24. A trial is scheduled for October 29, if the matter is not resolved prior to then.