Wilbur-Ellis Company v. Josh Gompert
CourtCourt of Appeals for the Eighth Circuit
Date FiledJuly 7, 2026
Docket25-1577, 25-1682
StatusPublished
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Full Opinion
United States Court of Appeals
For the Eighth Circuit
___________________________
No. 25-1577
___________________________
Wilbur-Ellis Company
Plaintiff - Appellant
v.
Josh Gompert; Aaron Petersen; James Kunzman; Chad Mueller
Defendants - Appellees
___________________________
No. 25-1682
___________________________
Wilbur-Ellis Company
Plaintiff - Appellee
v.
Josh Gompert; Aaron Petersen; James Kunzman; Chad Mueller
Defendants - Appellants
____________
Appeals from United States District Court
for the District of Nebraska - Omaha
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Submitted: March 17, 2026
Filed: July 7, 2026
____________
Before SHEPHERD, ERICKSON, and GRASZ, Circuit Judges.
____________
SHEPHERD, Circuit Judge.
Wilbur-Ellis Company (Wilbur-Ellis) sued four of its former
employees—Josh Gompert, Aaron Petersen, James Kunzman, and Chad Mueller
(collectively, the Employees), alleging breach of the duty of loyalty, violations of
state and federal trade secrets laws, and tortious interference with its business
relationships. During discovery, the district court 1 denied several of Wilbur-Ellis’s
discovery-related motions. Following discovery, the district court denied
Wilbur-Ellis’s request to stay its summary judgment decision, and it granted
summary judgment to the Employees on most of Wilbur-Ellis’s claims. Wilbur-
Ellis now appeals the district court’s denials of its discovery-related motions and its
request to stay summary judgment as well as the grant of partial summary judgment
to the Employees. The Employees, on the other hand, cross-appeal the district
court’s decision not to grant summary judgment in full. Having jurisdiction under
28 U.S.C. § 1291, we affirm.
I.
Wilbur-Ellis is a company specializing in agricultural products, services, and
technologies. On August 13, 2021, the Employees told Wilbur-Ellis they were
resigning from the company. Wilbur-Ellis placed the Employees on inactive
employment status shortly thereafter, but it paid them until their resignation was
formalized two weeks later, on August 27th. Meanwhile, on or around August 16th,
the Employees began working for J.R. Simplot Company (Simplot), Wilbur-Ellis’s
1
The Honorable Robert F. Rossiter, Jr., Chief Judge, United States District
Court for the District of Nebraska.
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competitor, thus receiving income from both companies until August 27th. At least
11 employees in total moved from Wilbur-Ellis to Simplot on or around August
2021.
Wilbur-Ellis sued Gompert and Petersen on September 1st—four days after
they left the company—alleging breach of the duty of loyalty, misappropriation of
trade secrets under the federal Defend Trade Secrets Act (DTSA) and the Nebraska
Trade Secrets Act (NTSA), and tortious interference with its business relationships.
On September 15th, Wilbur-Ellis filed an amended complaint that added Kunzman
and Mueller as additional defendants.
This case’s procedural history is complex. Because Wilbur-Ellis appeals a
number of orders issued during discovery as well as the district court’s summary
judgment order, we list them here chronologically.
A.
Near the beginning of discovery, pursuant to the local rules, 2 Wilbur-Ellis
gave the Employees notice of its intent to compel discovery from Simplot, the
Employees’ new employer and a third party to this case. The Employees objected
to Wilbur-Ellis’s notice of intent in May 2022. At a discovery conference later that
month, the magistrate judge instructed Wilbur-Ellis to seek discovery from the
Employees first instead of Simplot, noting that it was “backwards” to seek discovery
from a third party first and that it seemed unfair for Simplot to face a “massive
litigation issue just because [it] hired the [Employees].” Although Wilbur-Ellis
initially stated it understood the magistrate judge’s instruction, it nevertheless filed
2
Under the Local Rules for the District of Nebraska, a party cannot issue a
subpoena on a nonparty without first giving the adverse party notice. D. Neb. Civ.
R. 45.1(a). The adverse party then has seven days to object in writing to the proposed
subpoena. Id. at 45.1(b). “No subpoena may be issued for documents . . . whose
inspection or production is contested under this rule until the parties resolve the
objections.” Id.
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a motion four months later asking the magistrate judge to overrule the Employees’
objection to its notice of intent to subpoena Simplot.
Before ruling on the motion, the magistrate judge issued a text order stating
that the parties could not file a motion to compel “without first contacting
the . . . magistrate judge to set a conference for discussing the parties’ dispute.” The
magistrate judge also ordered Wilbur-Ellis to file a document “disclos[ing], with
specificity, the trade secrets it alleges were misappropriated.” Wilbur-Ellis complied
with the disclosure order without objection, producing a six-page document that
described its alleged trade secrets with phrases like “[d]ocuments and information
regarding Wilbur-Ellis’s business and market strategy,” “[d]ocuments and
information relating to Wilbur-Ellis’s customers,” and “nonpublic customer
proposals, pricing and rebate data.”
After reviewing Wilbur-Ellis’s disclosure, the magistrate judge denied
Wilbur-Ellis’s motion to overrule the Employee’s objection to the proposed
subpoena, citing numerous concerns. For one, the magistrate judge was concerned
that Wilbur-Ellis was merely trying to conduct a “‘fishing expedition’ on a
third-party competitor,” and it expressed skepticism towards Wilbur-Ellis’s
disclosure document, which “apparently claim[ed] that everything [the Employees]
encountered in their positions at Wilbur-Ellis was a trade secret.” Addressing a
motion by the Employees to lift restrictions on the disclosure document, the
magistrate judge observed that the document only contained “general categories of
information and descriptions” and that “[w]ith the exception of three customer
names, the filing does not contain material that implicates confidentiality to the
extent necessary to overcome the strong presumption of public access to court
documents.” The magistrate judge further noted that Wilbur-Ellis had not exhausted
its efforts to obtain discovery. Ultimately finding that Wilbur-Ellis’s disclosure
“[did] not identif[y] any specific characteristics of the allegedly misappropriated
trade secrets,” the magistrate judge denied Wilbur-Ellis’s motion to overrule the
Employees’ objection to the proposed subpoena.
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Wilbur-Ellis objected to the magistrate judge’s order before the district court,
but the district court overruled its objection and affirmed the order. Echoing the
magistrate judge’s observations, the district court agreed that “the categories of
possible trade secrets known . . . are much too broad to warrant third-party discovery
at this point.” The district court also noted that “the magistrate judge identified a
‘growing consensus’ of courts that require a party alleging misappropriation of trade
secrets to identify those trade secrets with a[t] least some level of specificity before
discovery.” While the district court clarified that it “need not definitively decide
whether a plaintiff alleging misappropriation of trade secrets must always identify
those trade secrets with reasonable particularity,” it concluded that, given the
numerous concerns with Wilbur-Ellis’s instant discovery request, “it was reasonable
for the magistrate judge to require it here.”
B.
After losing its initial bid to compel third-party discovery from Simplot,
Wilbur-Ellis moved to compel discovery from the Employees themselves. However,
the magistrate judge noted that Wilbur-Ellis did not abide by the court’s requirement
of a conference with the magistrate judge before filing a motion to compel, so she
denied its motion on that basis. The magistrate judge also found that Wilbur-Ellis’s
motion failed on the merits, as it “failed to . . . adequately identify the trade secrets
at issue, and/or provide the court with a sufficient argument to adequately evaluate
its motion.” The magistrate judge further noted that “Wilbur-Ellis [did] not
diligently pursue[] receipt of discovery,” as it did not file its motion until roughly
seven months after the defendants’ initial discovery responses. When Wilbur-Ellis
objected to the magistrate judge’s ruling, the district court affirmed, pointing to
Wilbur-Ellis’s failure to conference with the magistrate judge and the fact that
magistrate judges have broad discretion in managing discovery.
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C.
In March 2024, the Employees each individually moved for summary
judgment. In its combined response to the Employees’ motions, Wilbur-Ellis
requested that the district court stay its consideration of the summary judgment
motions pursuant to Federal Rule of Civil Procedure 56(d), on the grounds that the
Employees’ alleged lack of cooperation in discovery meant that more time was
needed for discovery. However, the district court observed that Wilbur-Ellis’s
request was “informal” and “d[id] not provide any additional authority” for its
argument. The district court further noted that “discovery has long been closed,”
and that because Wilbur-Ellis was trying to “revisit discovery issues that either
were—or should have been—resolved long before,” its request was “extremely
tardy.” Accordingly, the district court denied the request for a stay.
D.
Upon reviewing the merits of the Employees’ motions for summary judgment,
the district court granted them in part and denied them in part. The district court
dismissed most of Wilbur-Ellis’s claims because Wilbur-Ellis could not provide
sufficient evidence to support them. Regarding Wilbur-Ellis’s trade secrets claims,
the district court noted that Wilbur-Ellis “[did] not provide[] sufficient admissible
evidence to create a triable issue on any of its trade-secret claims.” Regarding its
tortious interference claim, the district court noted that Wilbur-Ellis was “long on
allegations and short on probative evidence to support a reasonable
inference . . . [of] unjust[] interfere[nce].” And regarding Wilbur-Ellis’s duty of
loyalty claims, the district court found that Wilbur-Ellis “failed to adduce sufficient
admissible evidence to support its most-serious allegations of disloyalty.”
However, the district court denied summary judgment on a narrow subset of
Wilbur-Ellis’s duty of loyalty claims. In recognizing that the Employees admitted
to “working for Simplot . . . while still employed at Wilbur-Ellis,” the district court
found that “a reasonable jury could . . . find that the defendants breached their duties
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of loyalty to Wilbur-Ellis by surreptitiously engaging in dual employment . . . [and]
award damages . . . [related to] duplicate or ill-gotten wages.” Accordingly, the
district court denied the Employees’ motions for summary judgment as to the breach
of loyalty claim for the two weeks the Employees were dual-employed (which the
parties now call the Limited Breach Claim), although it granted their summary
judgment motions “in all other respects.”
E.
Following the district court’s summary judgment order, the parties jointly
moved to dismiss the Limited Breach Claim without prejudice. The district court
noted that there were “telltale signs of an effort to avoid Rule 54(b) and 28 U.S.C.
§ 1292(b) and manufacture appellate jurisdiction,” but it treated the joint stipulation
as a “voluntary dismissal under Rule 41(a)(1)(A)(ii).” Then, relying on our prior
decision in Hope v. Klabal, 457 F.3d 784, 789 (8th Cir. 2006), the district court
observed that this voluntary dismissal “ma[de] the earlier partial summary judgment
‘a final judgment for purposes of appeal, even though the district court had not so
certified under [Rule] 54(b).’” (second alteration in original) (citation omitted).
After the district court dismissed the case in its entirety in favor of the Employees,
both parties appealed.
II.
First, Wilbur-Ellis challenges the district court’s denial of its
discovery-related motions. While Wilbur-Ellis did not list the discovery orders it
challenges in its notice of appeal, “[o]rdinarily, a notice of appeal that specifies the
final judgment in a case should . . . bring up for review all of the previous rulings
and orders that led up to . . . that final judgment.” In re Nat’l Warranty Ins. Risk
Retention Grp., 384 F.3d 959, 964 (8th Cir. 2004) (citation omitted). Accordingly,
we will “review [the] district court’s discovery rulings narrowly and with great
deference and will reverse only for a ‘gross abuse of discretion resulting in
fundamental unfairness.’” Bucklew v. Precythe, 883 F.3d 1087, 1096 (8th Cir.
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2018) (citation omitted). We will review Wilbur-Ellis’s arguments as they pertain
to the district court’s discovery orders in chronological order.
A.
We first address the issues related to Wilbur-Ellis’s attempt to compel
third-party discovery from Simplot. Wilbur-Ellis initially challenges the magistrate
judge’s instruction at the May 2022 discovery conference that Wilbur-Ellis first seek
discovery from the Employees before seeking it from Simplot. But Wilbur-Ellis did
not object to this instruction at the discovery conference or raise the issue before the
district court, so we may not consider it here. See Daley v. Marriott Int’l, Inc., 415
F.3d 889, 893 n.9 (8th Cir. 2005) (“[W]hen . . . a litigant could have tested a
magistrate’s ruling by bringing it before the district judge, but failed to do so . . . he
cannot later leapfrog the trial court and appeal the ruling directly to the court of
appeals.” (second alteration in original) (citation omitted)). In any case, Wilbur-Ellis
disregarded the magistrate judge’s instruction and attempted to compel discovery
from Simplot first anyway.
Wilbur-Ellis next argues that the district court erred in affirming the
magistrate judge’s order denying its motion to overrule the Employees’ objection to
its proposed third-party subpoena. Wilbur-Ellis contends that it should have been
allowed to compel discovery from Simplot and that the district court erred by basing
its decision “solely on its misguided ruling that Wilbur-Ellis had not sufficiently
identified its trade secrets.” Wilbur-Ellis also argues that identifying one’s trade
secrets is not a legal prerequisite to obtaining discovery in the first place.
We have held that a district court does not abuse its discretion when it denies
a motion to compel for being “extremely broad in scope, both in terms of the period
of time and the number of . . . documents” and when “the information
sought . . . was, very probably, irrelevant.” McGowan v. Gen. Dynamics Corp., 794
F.2d 361, 363 (8th Cir. 1986). Here, the district court did not abuse its discretion in
affirming the magistrate judge’s order. The magistrate judge observed that (a) she
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was concerned that Wilbur-Ellis intended to conduct a “fishing expedition” for
evidence on Simplot, (b) Wilbur-Ellis’s disclosure “[did] not identif[y] any specific
characteristics of the allegedly misappropriated trade secrets” but “apparently
claim[ed] that everything [the Employees] encountered . . . at Wilbur-Ellis was a
trade secret,” and (c) Wilbur-Ellis “has not shown that all efforts to [obtain
discovery] have been exhausted.” While Wilbur-Ellis challenges the
characterization of its evidence as being too general, it does not dispute that its
disclosure list is full of broad descriptions such as “[d]ocuments and information
regarding Wilbur-Ellis’s business and market strategy,” nor does it dispute the
magistrate judge’s finding that “[w]ith the exception of three customer names, the
filing does not contain material that implicates confidentiality.” Thus, given the
numerous concerns of the magistrate judge and the fact that the disclosure document
was “extremely broad in scope,” see id., the district court acted within its discretion
in affirming the magistrate judge’s order, see Bucklew, 883 F.3d at 1096.
Wilbur-Ellis also generally challenges the district court’s requirement that it
specify what trade secrets were allegedly misappropriated; however, it does not
specify the order to which this challenge applies. To the extent that Wilbur-Ellis
challenges the magistrate judge’s order that it “disclose, with specificity, the trade
secrets it alleges were misappropriated,” this challenge is waived, as Wilbur-Ellis
did not object to this order before the district court. See Daley, 415 F.3d at 893 n.9.
To the extent that Wilbur-Ellis challenges the district court’s reasoning in affirming
the magistrate judge’s denial of Wilbur-Ellis’s discovery motion, this challenge fails
as well. Wilbur-Ellis supports its position by citing Ahern Rentals, Inc. v.
EquipmentShare.com, Inc., 59 F.4th 948 (8th Cir. 2023), a case where we reversed
a district court’s dismissal of a trade secrets claim on the grounds that “allegations
pled on information and belief are not categorically insufficient to state a
claim . . . where the proof supporting the allegation is within the sole possession and
control of the defendant.” Id. at 954. But Ahern does not apply here because it only
describes the pleading requirement for overcoming a motion to dismiss, id. at 953,
which is a far lower burden than that required to establish a “gross abuse of
discretion” for overturning a discovery order, Bucklew, 883 F.3d at 1096 (citation
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omitted). Furthermore, the district court’s reasoning does not conflict with Ahern
even in spirit. Although the district court denied Wilbur-Ellis’s motion for
third-party discovery in this instance, it made clear that it “need not definitively
decide” on a requirement for plaintiffs to “always identify [their] trade secrets with
reasonable particularity” before obtaining discovery. Instead, the district court
merely found that specificity was required in the instant case, given the concerns
that Wilbur-Ellis was, among other things, seeking to compel third-party discovery
prematurely and potentially going on a “fishing expedition” for evidence. Because
nothing in Ahern suggests that this exercise of discretion is erroneous, much less a
gross abuse of discretion, Wilbur-Ellis’s reliance on this case is inapposite.
B.
Wilbur-Ellis’s next challenge pertains to its motion to compel discovery from
the Employees themselves; it argues that the district court erred in affirming the
magistrate judge’s order denying this motion. However, before Wilbur-Ellis filed
its motion to compel, the magistrate judge had issued an order stating that parties
could not file a motion to compel “without first contacting the . . . magistrate judge
to set a conference for discussing the parties’ dispute.” Wilbur-Ellis does not dispute
that it did not comply with this order, nor does it contest the validity of the order
itself. Thus, the district court did not abuse its discretion in affirming the magistrate
judge’s denial of the motion to compel on procedural grounds. See, e.g., Adams v.
Comm’r, 520 F. App’x 934, 936 (11th Cir. 2013) (“The denial of a discovery motion
is not an abuse of discretion where it is based on the moving litigant’s failure to
follow the applicable discovery rules requiring good-faith participation in the
discovery process.”). Because Wilbur-Ellis’s procedural deficiency independently
justifies our affirmance of the district court’s decision, we need not reach the merits
of Wilbur-Ellis’s argument here.
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C.
Wilbur-Ellis also challenges the district court’s denial of its request to stay its
consideration of the Employees’ summary judgment motions pursuant to Rule 56(d).
“Under [Rule] 56(d), a court may defer consideration of a summary judgment
motion or allow time for discovery ‘[i]f a nonmovant shows by affidavit or
declaration that, for specified reasons, it cannot present facts essential to justify its
opposition.’” Marlow v. City of Clarendon, 78 F.4th 410, 416 (8th Cir. 2023)
(second alteration in original) (citation omitted). “We review the denial of a Rule
56(d) motion for an abuse of discretion.” Id. at 416-17.
Here, the district court found that Wilbur-Ellis’s request was “extremely
tardy” due to being filed long after discovery had closed, that it was “informal,” and
that it mentioned issues that were or should have been resolved at earlier stages in
the litigation. Because Wilbur-Ellis does not challenge any of these findings on
appeal, we are not persuaded that the district court abused its discretion. See id.
Additionally, even assuming that Wilbur-Ellis could not obtain the documents
it needed in discovery, this shortcoming seems to be largely its own doing. As the
magistrate judge noted, Wilbur-Ellis began discovery in a “backwards” manner by
first seeking discovery from a third party rather than the Employees
themselves; then, when Wilbur-Ellis finally did move to compel discovery from the
Employees, it inexplicably neglected to first conference with the magistrate judge.
Given that Wilbur-Ellis largely caused its own inability to obtain discovery, the
district court was within its discretion to deny a stay. See id.
III.
Next, both parties appeal the district court’s summary judgment order.
Wilbur-Ellis argues that the district court improperly granted summary judgment on
a majority of its claims, while the Employees argue that the district court should
have granted summary judgment in full. “We review the grant of summary judgment
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de novo, affirming if ‘there is no genuine dispute as to any material fact and the
movant is entitled to judgment as a matter of law.’” Jackson v. Buckman, 756 F.3d
1060, 1065 (8th Cir. 2014) (citations omitted).
A.
Wilbur-Ellis first challenges the grant of summary judgment on its trade
secrets claims under the DTSA and the NTSA. Under the DTSA, “[t]o demonstrate
misappropriation of trade secrets, [Wilbur-Ellis] must show, among other things, the
existence of a protectable trade secret and misappropriation of that trade secret.”
MPAY Inc. v. Erie Custom Computer Applications, Inc., 970 F.3d 1010, 1016 (8th
Cir. 2020). The DTSA defines a “trade secret” as information that “the owner has
‘taken reasonable measures to keep . . . secret’ and . . . has economic value.” Farmers
Edge Inc. v. Farmobile, LLC, 970 F.3d 1027, 1033 (8th Cir. 2020) (citation omitted).
The DTSA defines “misappropriation” as the “acquisition of a trade secret . . . by
improper means” or “disclosure or use of a trade secret . . . without express or
implied consent by a person who . . . used improper means.” 18 U.S.C. § 1839(5).
The NTSA similarly defines trade secrets and misappropriation. See Farmers Edge
Inc., 970 F.3d at 1033; Neb. Rev. Stat. § 87-502(2), (4).
Having carefully reviewed the record before us, we agree with the district
court that there is no genuine dispute of material fact as to Wilbur-Ellis’s trade
secrets claims. The district court observed that Wilbur-Ellis “paint[ed] with a broad
brush, never clearly and adequately identifying the ‘trade secrets’ at issue, let alone
how they were used or misused or the damages reasonably attributable to each
defendant.” Referencing Wilbur-Ellis’s disclosure of alleged trade secrets, the
district court also stated that “Wilbur-Ellis’s reliance on broad terms, general
descriptions, and repeated, non-specific references . . . do not suffice. Without more,
much of the information it designates as trade secrets also appears to be public or
unprotected.”
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Nothing Wilbur-Ellis presents on appeal refutes the district court’s
characterization. Wilbur-Ellis contends, for example, that “[c]ustomer information,
including particular needs and characteristics about the customer, warrant trade
secret protection.” But Wilbur-Ellis never explains what specific documents relating
to customer information were misappropriated; which defendant allegedly
misappropriated them; or how the information was misappropriated. Wilbur-Ellis
also claims that two of the Employees “downloaded and accessed files stored on
Wilbur-Ellis devices” during their last weeks of pay at the company, and that
“[t]hese files included . . . highly sensitive information regarding Wilbur-Ellis’s
customers, financial information, and strategy.” But again, Wilbur-Ellis does not
specify what files were taken, what efforts Wilbur-Ellis took “to maintain [their]
secrecy,” or how the defendants acquired them using “improper means.” See Neb.
Rev. Stat. § 87-502(2). Additionally, because it is not hard to imagine that most
documents at Wilbur-Ellis would be related to its “customers, financial information,
[or] strategy,” Wilbur-Ellis fails to rebut the district court’s concern that Wilbur-Ellis
“apparently claim[s] that everything [the Employees] encountered in their positions
at Wilbur-Ellis was a trade secret.” (emphasis added).
The only time Wilbur-Ellis mentions information that could constitute a trade
secret is when it discusses SeedWare. Wilbur-Ellis explains that it “stored most
confidential information in a database called Seedware,” and “[a]ccess to SeedWare
required a username and password, and employees were limited in the information
to which they had access.” However, while some of the Employees had access to
SeedWare while working at Wilbur-Ellis, Wilbur-Ellis does not provide any
evidence showing—nor does it even allege—that the Employees “acqui[red]
[SeedWare] . . . by improper means” or “disclos[ed] [it] . . . without express or
implied consent” using improper means. 18 U.S.C. § 1839(5). Thus, regardless of
whether SeedWare is a trade secret, Wilbur-Ellis has not provided evidence that the
Employees misappropriated it. See id.
Lastly, Wilbur-Ellis claims that the Employees’ simultaneous departure for
Simplot was a “coordinated attack” and that the Employees’ improperly “reset[]
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[their] electronic devices prior to returning them to Wilbur-Ellis.” But Wilbur-Ellis
merely makes these assertions without providing further explanation and, more
importantly, it does not explain how these events were connected to any specific
trade secret. Thus, because we agree with the district court’s finding that
Wilbur-Ellis “never clearly and adequately identif[ied] the ‘trade secrets’ at issue,
let alone how they were used or misused,” we hold that it did not err in granting
summary judgment on Wilbur-Ellis’s trade secrets claims.
B.
We next turn to the district court’s grant of partial summary judgment on
Wilbur-Ellis’s common law duty of loyalty claims. The district court dismissed
these claims, except to the extent that they pertained to the two weeks during which
the defendants were being paid by both companies (i.e. the Limited Breach Claim).
Following the district court’s summary judgment order, and prior to this appeal, the
parties jointly moved to dismiss the Limited Breach Claim without prejudice under
Rule 41(a)(1).
Wilbur-Ellis contends that the district court should not have granted summary
judgment on any portion of its duty of loyalty claims. On the other hand, the
Employees argue that Wilbur-Ellis cannot maintain the Limited Breach Claim on
appeal because it voluntarily dismissed it; they also argue the district court properly
granted summary judgment on the rest of the duty of loyalty claims. Alternatively,
the Employees argue that the district court should have dismissed the Limited Breach
Claim on its merits at summary judgment.
1.
First, we agree with the Employees that Wilbur-Ellis’s voluntary dismissal of
the Limited Breach Claim deprives us of any power to adjudicate it. The parties’
joint stipulation of dismissal provides that “pursuant to Rule 41(a)(1)(A), without a
Court order, Plaintiff consents and Defendants stipulate to dismissal without
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prejudice as to the Limited Breach Claim.” Because “[t]he effect of a voluntary
dismissal without prejudice pursuant to Rule 41(a) ‘is to render the proceedings a
nullity and leave the parties as if the action had never been brought,’” Smith v.
Dowden, 47 F.3d 940, 943 (8th Cir. 1995) (citation omitted), the Limited Breach
Claim is not properly before us.
Wilbur-Ellis contends that it may still pursue the Limited Breach Claim in this
appeal because, as stated in the joint stipulation of dismissal, “Defendants stipulate
and agree that they will not (and waive any right to) . . . challenge the appealability
of the Limited Breach Claim.” But a defendant does not have the power to permit a
plaintiff to appeal a claim it has voluntarily dismissed under Rule 41(a)(1), for “[t]he
jurisdictional effect of . . . a voluntary dismissal [under Rule 41(a)(1)] deprives the
court of any power to adjudicate the withdrawn claim.” Id. Thus, we lack
jurisdiction to address the merits of the Limited Breach Claim.
2.
Next, Wilbur-Ellis challenges the summary judgment order as it relates to the
rest of its duty of loyalty claims. Under Nebraska law, “[i]t is well settled that ‘[a]n
employer’s right to demand and receive loyalty must be tempered by society’s
legitimate interest in encouraging competition.’” Dick v. Koski Pro. Grp., P.C., 950
N.W.2d 321, 366 (Neb. 2020), opinion modified on denial of reh’g, 953 N.W.2d 257
(Neb. 2021) (second alteration in original) (citation omitted). Further, “[a]n at-will
employee with a fiduciary relationship with his or her employer may properly plan
to go into competition with the employer and may take active steps to do so while
still employed, and such an employee has no general duty to disclose such plans to
the employer.” Id. However, an “employee may not (1) appropriate the employer’s
trade secrets, (2) solicit the employer’s customers while still working for the
employer, (3) solicit the departure of other employees while still working for the
employer, or (4) carry away confidential information, such as customer lists.” Id. at
366-67. Nevertheless, “[t]o give rise to liability, the employee’s disloyal conduct
must be ‘so harmful as to substantially hinder the employer in the continuation of
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his business.’” W. Plains, L.L.C. v. Retzlaff Grain Co., 870 F.3d 774, 786 (8th Cir.
2017) (emphasis added) (citation omitted) (applying Nebraska law). Furthermore,
“[m]ere allegations, unsupported by specific facts or evidence beyond the
nonmoving party’s own conclusions, are insufficient to withstand a motion for
summary judgment.” Jones v. Wellpath, LLC, 77 F.4th 658, 663 (8th Cir. 2023)
(alteration in original) (citation omitted).
Here, Wilbur-Ellis has not provided sufficient evidence in support of its duty
of loyalty claims to survive summary judgment. The district court noted that
“Wilbur-Ellis has failed to adduce sufficient admissible evidence to support its
most-serious allegations of disloyalty, particularly given its burden to establish a
substantial hindrance.” The summary judgment record confirms this finding, as the
defendants aver—and Wilbur-Ellis does not dispute—that Wilbur-Ellis never
provided any documents in discovery when asked to “[p]roduce the documents,
electronically stored or otherwise, evidencing or showing what Plaintiff maintains
was . . . [a] breach of any duty owed to Plaintiff.” The defendants also maintain, and
Wilbur-Ellis does not contest, that Wilbur-Ellis never supplemented its disclosures
relating to these discovery requests.
Nevertheless, Wilbur-Ellis alleges that several facts raise a genuine dispute as
to its breach of duty claims. Wilbur-Ellis points out that “Simplot . . . extended job
offers to three of the Defecting Employees”; that “[a]round the same time, Defecting
Employees met with one of Wilbur-Ellis’s key business partners”; and that the
Employees “simultaneously provided resignation notices.” But these facts show
nothing more than the Employees’ “plan to go into competition with the
employer . . . while still employed,” which they “ha[d] no general duty to
disclose . . . to [Wilbur-Ellis].” Dick, 950 N.W.2d at 366. Employees may continue
working for their employer even while they plan to leave for a competitor in the
future, see id., and Wilbur-Ellis cites no case law, Nebraska or otherwise, holding
that the mere resignation of a group of employees evidences a breach of the duty of
loyalty. On the contrary, courts interpreting other states’ case law have found that
such activity does not raise a genuine factual dispute as to a breach of duty. See,
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e.g., ATC Distribution Grp., Inc. v. Whatever It Takes Transmissions & Parts, Inc.,
402 F.3d 700, 716 (6th Cir. 2005) (affirming the grant of summary judgment on a
breach of duty claim raised under Kentucky law because the plaintiffs “offer[ed] no
explanation why ordinary employees of a company may not meet with each other,
openly or ‘clandestinely,’ to plan for the opening of a rival company”); In re Pro.
Home Health Care, Inc., 159 F. App’x 32, 34 (10th Cir. 2005) (noting that, in the
context of Colorado law, “certain traditional actions taken by departing employees
(e.g., . . . a firm partner leaving with associates) are not considered sufficient to
constitute a breach of the duty of loyalty, absent an intent to injure the employer”).
While Wilbur-Ellis contends that the Employees’ simultaneous departure is
comparable to the defendants’ conduct in West Plains, where we found that there
was a genuine dispute as to whether the defendants breached their duty of loyalty,
this comparison is not apt, as there we specifically observed that the defendant
employees “intended to . . . offer[] insider information to [the plaintiff’s
competitor]” and “provide[d] [competitors with] important information while they
were still employed by [the plaintiff].” 870 F.3d at 786-87. Wilbur-Ellis has not
provided evidence to establish that similar conduct occurred here.
Wilbur-Ellis next argues that “while still employed by Wilbur-Ellis,” the
Employees “tried to hide their misconduct by wiping six of eight company-issued
devices.” But the record contradicts this characterization of the Employees’
motives; in the depositions Wilbur-Ellis cites, the Employees merely state that they
reset their company devices to avoid leaving personal information on them or that
they did not know it was against company policy. As Wilbur-Ellis does not cite any
other document, testimony, or other evidence showing that the Employees wiped
their devices “to hide their misconduct,” this contention is nothing more than a
“[m]ere allegation[], unsupported by specific facts or evidence.” Jones, 77 F.4th at
663 (first alteration in original). Additionally, regardless of the Employees’ motive
in wiping their devices, Wilbur-Ellis does not explain how these actions
“substantially hinder[ed]” its operations, see W. Plains, 870 F.3d at 786 (citation
omitted), as it does not allege, for example, that the wiping of the devices caused
Wilbur-Ellis to permanently lose valuable data.
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Finally, Wilbur-Ellis argues that the Employees “solicited employees,
suppliers . . . and dealers to move to Simplot,” and that three of the Employees
admitted to doing this while still employed at Wilbur-Ellis. But while Wilbur-Ellis
cites Gompert’s deposition to establish this point, the deposition transcript only
shows that he could not remember the substance of the conversations in which
Wilbur-Ellis alleges he improperly solicited people—it does not support
Wilbur-Ellis’s conclusion. The only other evidence Wilbur-Ellis cites for this claim
is its own self-serving deposition testimony, which is based entirely on hearsay, see
Crews v. Monarch Fire Prot. Dist., 771 F.3d 1085, 1092 (8th Cir. 2014) (“At
summary judgment, the requisite ‘genuine dispute’ must appear in admissible
evidence.” (citation omitted)), and even this testimony does not show that the
Employees admitted to conducting improper solicitation. Thus, the district court did
not err in concluding that Wilbur-Ellis “failed to adduce sufficient admissible
evidence to support its . . . allegation[]” that the Employees improperly solicited
other parties. See Davidson & Assocs. v. Jung, 422 F.3d 630, 638 (8th Cir. 2005)
(“A plaintiff may not merely point to unsupported self-serving allegations, but must
substantiate allegations with sufficient probative evidence that would permit a
finding in the plaintiff’s favor.”).3 Accordingly, the district court did not err in
granting summary judgment to the Employees on Wilbur-Ellis’s duty of loyalty
claims.
C.
Wilbur-Ellis lastly challenges the district court’s grant of summary judgment
on its tortious interference claims. To prevail on a claim for tortious interference
with a business relationship, a plaintiff must prove
3
As mentioned previously, while the district court did give credence to the fact
that the Employees “began working for Simplot and receiving a salary while still
employed at Wilbur-Ellis,” that part of the duty of loyalty claim (the Limited Breach
Claim) was voluntarily dismissed.
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(1) the existence of a valid business relationship or expectancy, (2)
knowledge by the interferer of the relationship or expectancy, (3) an
unjustified intentional act of interference on the part of the interferer,
(4) proof that the interference caused the harm sustained, and (5)
damage to the party whose relationship or expectancy was disrupted.
Thompson v. Johnson, 910 N.W.2d 800, 806-07 (Neb. 2018).
Here, the district court found that “Wilbur-Ellis’s response is again long on
allegations and short on probative evidence.” As it further elaborated, “Wilbur-Ellis
has a lot of suspicions about what it thinks happened behind the scenes but has not
submitted sufficient evidence to permit a reasonable jury to find in its favor . . . or
to attribute any part of its estimated . . . lost profits to any unjustified act by one of
the defendants.”
We agree with the district court. On app