Hartford Business Journal

16 Hartford Business Journal • May 7, 2018 • www.HartfordBusiness.com By Matt Pilon mpilon@HartfordBusiness.com A n East Hartford manu- facturer that won what's considered to be among the largest trade-secret judgments in Connecti- cut history is hoping for an encore. Dur-A-Flex, which makes flooring sys- tems and polymer components for com- mercial and industrial customers at its Goodwin Street plant, has been engaged for four years in a bitter lawsuit against a former employee and a number of his alleged new employers and customers, alleging that its trade secrets have been pilfered, costing it market share, com- petitive advantage and revenue. The lawsuit in Hartford Superior Court has reached the trial phase, a proceeding that could take months due to the complexity and technical nature of the claims. Meanwhile, several defendants' attorneys say Dur-A-Flex is overreach- ing and trying to restrict competition. Dur-A-Flex made headlines in 2010 when it won a $43.7 million judge- ment against Bethany-based Laticrete, a competitor it sued and accused of stealing trade secrets related to a colored-sand product. In its latest lawsuit, which was filed in March 2014, Dur-A-Flex accuses its former research chemist, Samet Dy, of violating his non-compete agreement and using the company's intellec- tual property, such as certain secret chemical formulas, to develop similar flooring products for competitors. Several companies launched compet- ing products not long after retaining Dy's services, the 26-count suit states. Also named as defendants are Dy's nephew Auttdomm "Josh" Dy, a UCo- nn-trained chemist who once interned under his uncle at Dur-A-Flex, and six companies and related executives that Dur-A-Flex claims the Dys assisted in developing competing products using its trade secrets. The other defendants include: A&E ProCoat, formed by Samet Dy in his garage in Glastonbury around the time he resigned from Dur-A-Flex; ProRez Performance Resins and Coatings and Durafloor, both also based in Glaston- bury and both formed by another de- fendant Steven Lipman, who was also a former Dura-A-Flex employee and personal friend of Samet Dy, accord- ing to court records; Wisconsin-based flooring maker Indue Sales & Services Inc.; Rocky Hill-based Merrifield Paint Co.; and Litchfield-based Engineered Coatings Inc. and its vice president, Christopher Krone. Dur-A-Flex is seeking a permanent injunction, profits derived from the sale of any misappropriated products, as well as compensatory and punitive damages. The defendants have denied the al- legations, according to court records. A bench trial began in February before Judge Thomas Moukawsher, with the next trial date set for mid-May. The court has deemed the suit to be "complex litigation," a status typi- cally assigned to cases with numerous litigants, intricate legal claims and the potential for large damages, according to the Connecticut Legal Branch. Some of the legal questions Mou- kawsher is tasked with parsing include: If Dur-A-Flex has protectable trade secrets; whether Samet Dy's non-compete agreement with Dur- A-Flex is enforceable and whether he breached it; whether Samet and Josh Dy disclosed trade secrets in violation of state law; whether the defendant companies knowingly used those secrets; and if defendants engaged in a conspiracy to acquire the secrets. Competing products crop up During his time at Dur-A-Flex, Samet Dy helped develop a floor coat- ing called Poly-Crete as well as other key products, the lawsuit says. The company says it invested more than $2 million over seven years to develop its array of cement-like urethane, epoxy, polyurethane and dual-cure polyaspartic flooring prod- ucts, the formulas for which were kept under lock and key, accessible only to certain personnel, including Samet Dy. Exactly which formulas are at the heart of the lawsuit is not clearly laid out in public court documents. Judge Moukawsher approved an order that would close the courtroom when certain sensitive materials are be- Trade Secrets Battle An East Hartford manufacturer is waging a contentious lawsuit against a former employee and competitors it says ripped off its intellectual property. Dur-A-Flex President Peter Ferris shown in 2012 at the company's East Hartford headquarters. A Dur-A-Flex employee is shown working in the company's Goodwin Street plant in East Hartford in late 2012. Dur-A-Flex is involved in a lawsuit against a former employee and others, who the company says ripped off its intellectual property for certain flooring products. PHOTOS | HBJ FILE

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