Blueberry Pie Fight: Rivalry and serious allegations of trade secret thefts – and who wins and loses profits in Michigan’s Blueberry industry, Upper Peninsula Breaking News has learned
![Blueberry graphic photo by Greg Peterson](https://upperpeninsulabreakingnews.wordpress.com/wp-content/uploads/2014/09/blueberry-graphic.png?w=665&h=444)
Blueberry graphic photo by Greg Peterson
Michigan Blueberry Growers Association
vs
Brenda Reeves; True Blueberry Management, LLC (John Connor, CEO); True Blue Custom Farm Management, LLC; True Blue Farms, LLC, True Blue Processing, LLC; True Blue Manufacturing, True Blue Fresh, LLC; True Blue Holdings, LLC; TBF A&L Farms, LLC; TBF A&L Packaging, LLC; TBF Heritage Farms, LLC; TBF Emmert Farms, LLC; TBF Midwest Farms, LLC; TBF North Farms, LLC; TBF North Packaging, LLC; and TBF Sales, Inc.
By Greg Peterson, Upper Peninsula Breaking News
![Blueberries near Covington, MI by Greg Peterson 8-5-10](https://upperpeninsulabreakingnews.wordpress.com/wp-content/uploads/2014/09/blueberries-covington-area-8-5-10-15.jpg?w=300&h=200)
Wild Blueberries near Covington, MI by Greg Peterson 8-5-10
(Grand Haven, Michigan) – Michigan’s blueberry fields are not a likely place for allegations of corporate espionage, but the Michigan Blueberry Growers Association recently filed a federal civil lawsuit involving at least two former top employees and 11 blueberry related corporations that they accuse of conspiracy, fraud, theft of trade secrets, and use of a proprietary computer program named Produce Track that is “unparalleled in the industry” with about “600,000 lines of code” and that tracks “100 million pounds of blueberries from the field to market,” Upper Peninsula Breaking News has learned.
The 36-page, nine-count federal lawsuit lists alleged violations of state and federal laws including evidence of a conspiracy between the defendants, violation of the “Computer Fraud and Abuse Act,” violation of the Michigan Uniform Trade Secrets Act, “tortious interference with business and contractual relationships,” common law conversion of property and business information, unjust enrichment, and breach of fiduciary duty.
Tortious interference is also known as intentional interference with contractual relations
MBG wants a federal judge to issue a one year injunction stopping all the defendants from contacting or being involved with MBG blueberry growers plus stopping use of MBG programs and information.
The Michigan Blueberry Growers Association (MBG), located in Grand Junction, MI, filed suit against Brenda Reeves of Van Buren County, MI, the company’s former manager of information services.
Reeves joined the MBG on on March 6, 2000 and “resigned her employment with MBG” on September 16, 2013 and “began working with one of the named defendants True Blue Entities, which directly competes with MBG,” the suit states.
![MBG President/CEO Robert Hawk](https://upperpeninsulabreakingnews.wordpress.com/wp-content/uploads/2014/09/robert-hawk-mbg-ceo-2.jpg?w=665)
MBG President/CEO Robert Hawk
MBG is a “producer-owned blueberry cooperative” and the president and CEO is Robert Hawk, sign an affidavit swearing the allegations in the lawsuit are true.
The suit filed by MBG on August 26, 2014 alleges all the corporations fall under “True Blue Entities” and that the corporations named “are all owned managed and controlled by Dennis Hartmann and Shelly Hartmann, thus that they operate effectively as one entity.”
Shelly Hartmann is listed as the secretary of the U.S. Highbush Blueberry Council
“The defendants’ misappropriation of trade secrets under the Michigan Uniform Trade Secrets Act, tortious interference with economic advantage and existing business relationship,” alleges the suit filed at federal court in Grand Rapids.
The MBG lawsuit accuses Reeves of “breach of the duty of loyalty” and violations “of the Federal Computer Fraud and Abuse Act.”
Reeves is accused by former boss MBG of “willful and intentional interference with the ownership rights, financial management and confidentiality policies” of the Michigan Blueberry Growers Association (MBG)”
The suits lists True Blueberry Management, LLC in Grand Junction, Michigan, the CEO of which is John Connor.
Connor is the former MBG director of formation technology “and was actively involved in the recruitment” of Reeves, the suit alleges.
The blueberry growers group is asking a federal judge to for “immediate injunctive relief.”
Reeves was “the lead developer of software for MBG and was responsible for the maintenance and support of all MBG’s custom and proprietary applications, including but not limited to, Produce Track,” the lawsuit states. She was the “direct liaison with MBG’s growers, and often was the first and primary contact MBG growers had with MBG.”
“Produce Track is a custom and proprietary, non-commercially available application developed by MBG,” according to the lawsuit. “Produce Track tracks 100 million pounds of blueberries from the field to market”
Produce Track “capabilities include, but are not limited to, tracking the MBG grower picking, pricing, and distribution of fresh and frozen blueberries,” the suit states.
“It is instrumental in field management, tracking field transactions, and managing potential recall and other food safety events,” the lawsuit states. Produce Track is used to track “grower documents, grower transportation documents, grower inventory information and quality control specifications relating to the grading of the growers’ blueberry crops.”
“Produce Track took nearly 10 years to develop and its program consists of approximately 600,000 lines of code,” the suit states. “Highly specific” source code that could not be recreated “without unauthorized and unlawful copying of this product”
Reeves held a “position of trust” at MBG that gave her access, training and intimate knowledge of:
“MBG’s product strength and weaknesses in comparison to competitors’ offerings” including “grower pricing, budgets and margins; growers’ needs; the terms of grower contracts; growers contact and information; prospective grower information; market strategies; sales plans; sales forecasts, referral-source information; access to valuable reporting and yield data.”
Reeves “signed an agreement on Feb. 20. 2013” prohibiting her from “distributing proprietary software to any third party” without company authorization.
![True Blue Farms #3](https://upperpeninsulabreakingnews.wordpress.com/wp-content/uploads/2014/09/true-blue-farms-3.png?w=665&h=603)
Reeve’s “duty of loyalty to MBG” prohibited her from using proprietary and confidential information to aid in the pursuit of a competing business opportunity” and prohibits her from using MBG financial and business information “for her own benefit,” alleges the lawsuit.
In developing the “proprietary software program Produce Track,” Reeves had “access to confidential information concerning MBG growers, its highly confidential financial information including its contracts, pricing, profits, yields, margins, marketing and sales strategies,” the lawsuit states.
![The Blueberry People logo #2](https://upperpeninsulabreakingnews.wordpress.com/wp-content/uploads/2014/09/the-blueberry-people-logo-2.png?w=665)
Reeves was given a laptop computer on which was stored confidential and proprietary information owned by MBG, the suit alleges.
Reeves was “given a secure company email account and granted access to MBG’s password protected server” that contained “important and confidential” financial information including “grower contracts, (and) pricing information,” according to the lawsuit.
“MBG is a producer-owned blueberry cooperative engaged in the business of producing, marketing, shipping and storing of blueberries as well as the breeding and development of new proprietary blueberry varieties,” the law suits states.
MBG started suspecting Reeves “several months after” her resignation when MBG learned Reeves “may have been communicating” with defendant True Blue Entities prior to resigning.
MBG “initially attempted to conduct an internal forensic analysis” of Reeve’s computer, however she “had attempted to wipe the data from the computer.” In the spring of 2014, the computer was sent to “third party” ReNew Data for forensic analysis, the lawsuit says.
The suit alleges the forensic analysis by ReNew Data discovered:
Reeves corresponded on her “her personal Gmail account” between Sept. 4-13, 2014 “in relation to obtaining employment at one of the True Blue Entities.”
Immediately prior Reeves resigning on Sept. 13, 2013 “two external USB drives were attached” to her computer – and there was no “legitimate business reason” for the devices to be connected to her computer.
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“These storage devises were likely connected (by Reeves) for the purposes of copying data” despite signing an agreement that required her to get permission to attach the such devices and “Reeves never had written authorizations to copy, distribute or otherwise use this data.”
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“On September 13, 2013 at 2:08 p.m. several human resources network locations were accessed” and “these files included information related to salary, budgets, bonus allocations, and other human resources documents” and because Reeves “was not related to human resources”therefore “she had no legitimate business reason” related to her employment for accessing MBG files.
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Reeves allegedly “opened seven files related to MBG’s Produce Track program, a proprietary computer software program that is unparalleled in the industry” however, the “forensic analysis could not determine what, if any, files were copied to USB devises” that were “attached contemporaneously” without authorized access.
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“Eight files related to payroll maintenance, payroll allocations. Salary budgets, bonus allocations and compensation history” were “opened at the time the USB devices were attached” to Reeves’ computer.
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Gmail records between Reeves and True Blue Management, LLC Executive John Connor discussing an $80,000 per year job that includes medical/dental benefits, and tuition reimbursement. That acceptance was “awaiting approval” from Dennis and Shelly Hartmann.
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MBG sent a “cease and desist demand letter” to Reeves insisting she”cease and desist from any further use of MBG confidential and proprietary information” and “provide the two identified external storage devices for forensic analysis.”
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On April 4, 2014 in response to the cease and desist letter, Reeves offered to meet with MBG to remove “confidential or proprietary items on what she deemed her personal backup system” but later stated the device were turned over to her attorney – and that “she had not taken or used any MBG trade secrets or proprietary, confidential information. A series of letters between both sides led 14 months later (June 25, 2014) to Reeves’ attorney sending the devices for a third party analysis.
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MBG discovered Reeves’ allegedly “had accessed over 93,000 MBG files after she had left MBGs employment” including the Produce Track system and other confidential data – and there was “a mass uploading and/or deletion of files from Reeves’ USB devices,” the analysis revealed. Reeves allegedly “has downloaded and taken tens of thousands of MBG files including grower trade secrets information and Produce Track.
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MBG says it learned on August 18, 2014 that “confidential information” was being used by True Blue Entities to “contact a commercial builder about building a cold storage facility to directly compete with MBG” and allegedly were using an expensive MBG “feasibility study stored” in electronic files on Reeves’ computer “unlawfully taken by” Reeves “upon her resignation.”
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The study included “specifications and yields of blueberry crops” in Michigan. The use of the MBG study constitutes “and unfair competitive advantage” as True Blue Management, LLC won’t have to finance its own study – and that the stealing of trade secret information “has impaired MBG’s competitive edge” and the alleged theft of information “will irreparably harm MBG” unless an injunction is issue by a federal judge.
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MBG states it has been harmed by the alleged thefts and it is worried Reeves’ has spoiled evidence by deleting files “in an effort to hide her unlawful conduct.” The full extent of the harm against MBG isn’t known but “Reeves’ breach greatly exceeds $5,000” and includes loss of current and future blueberry growers, and loss of grower goodwill and market positions. MBG states True Blue Entities “knew or had reason to know” they were using stolen data that intentionally and willfully has lead to the loss of MBG profits and damaged its goodwill and economic relationships with growers.
MBG is being represented by Grand Rapids attorneys Katherine J. Van Dyke and Linda L. Ryan of Jackson Lewis P.C.
Tortious interference is a common law tort allowing a claim for damages against a defendant who wrongfully interferes with the plaintiff’s contractual or business
The suit indicates the state law violations will be fought in a similar lawsuit filed in state circuit court.
The 36-page federal lawsuit was filed on by the “Michigan Blueberry Growers Association” against Brenda Reeves; True Blueberry Management, LLC (John Connor, CEO); True Blue Custom Farm Management, LLC; True Blue Farms, LLC, True Blue Processing, LLC; True Blue Manufacturing, True Blue Fresh, LLC; True Blue Holdings, LLC; TBF A&L Farms, LLC; TBF A&L Packaging, LLC; TBF Heritage Farms, LLC; TBF Emmert Farms, LLC; TBF Midwest Farms, LLC; TBF North Farms, LLC; TBF North Packaging, LLC; and TBF Sales, Inc.
Related links:
Michigan Blueberry Growers Association
The Blueberry People™
Producer-owned blueberry cooperative
Grand Junction, MI
www.blueberries.com
www.blueberries.com/about.php
contact@blueberries.com
Robert Hawk, President/CEO
http://producenews.com/news-dep-menu/test-featured/8448-robert-e-hawk-set-to-lead-mbg-marketing
www.perishablenews.com/index.php?article=0023813
South Haven tribune story on Robert Hawk, MBG CEO 7-28-14
www.southhaventribune.net/all_about_business
Pat Goin, chair, MBG board of directors
Represented by Grand Rapids attorneys Katherine J. Van Dyke and Linda L. Ryan of Jackson Lewis P.C.
Sept. 2010 article about Michigan Blueberry Growers Association in Fruit Growers News by Managing Editor Matt Milkovich
http://fruitgrowersnews.com/index.php/magazine/article/blueberry-exposition-coming-to-grand-rapids
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True Blue Farms
Grand Junction, MI
269-434-6112
http://truebluefarms.com
http://truebluefarms.com/chickensoupstory.pdf
www.facebook.com/pages/True-Blue-Farms/111789088859711
www.pinterest.com/blueberrystore
www.mi.gov/documents/MDA_Hartmann_blueberry_70866_7.pdf
The Blueberry Store
877-654-2400
www.theblueberrystore.com
www.pinterest.com/blueberrystore
www.facebook.com/theblueberrystore
https://twitter.com/Blueberry_Store
www.youtube.com/user/TheBlueberryStore
https://plus.google.com/114773011314823921287/posts
Third generation Blueberry Grower Dennis Hartmann
http://research.msu.edu/stories/savoring-fruits-michigan-growers-labor
Shelly Hartmann
www.linkedin.com/pub/shelly-hartmann/a/953/ab8
Shelly Hartmann Interviewed on “Ask Your Neighbor“
www.youtube.com/watch?v=qEHuVoCBfY8
www.ewomennetwork.com/conf2007/speakers.html
www.southhavenmi.com/pages/TrueBlueTitleSponsor
Shelly Hartmann is listed as the secretary of the U.S. Highbush Blueberry Council
Brenda Reeves of Van Buren County, MI
True Blueberry Management
www.tb-bm.com
www.tb-bm.com/about-us
John Connor, CEO
True Blueberry Management, LLC
Grand Junction, Michigan
Connor is the former MBG director of formation technology
www.linkedin.com/pub/john-conner/0/507/289
June 2010 story about True Blue owners Dennis and Shelly Hartmann in Fruit Growers News by Managing Editor Matt Milkovich
http://fruitgrowersnews.com/index.php/magazine/article/michigan-blueberry-farm-stays-true-blue
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Michigan Blueberry Advisory Committee
www.mbbac.org
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North American Blueberry Council (NABC)
80 Iron Point Circle, Suite 114
Folsom, CA 95630
http://www.nabcblues.org/members/NABC%20Grower%20Members_2014.pdf
info@nabcblues.org
Contact Form
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U.S. Highbush Blueberry Council
http://www.blueberry.org
http://www.blueberry.org/ushbc.htm
http://www.ams.usda.gov/AMSv1.0/ams.fetchTemplateData.do?template=TemplateN&page=FVResearchandPromotionCultivatedBlueberries
—
Brenda Reeves
Director of IT at True Blue Berry Management
Kalamazoo, Michigan
Marketing and Advertising
Previous employment:
MBG Marketing
Kalamazoo Flower Group
Blockbuster
Education:
Kalamazoo Valley Community College
www.linkedin.com/pub/brenda-reeves/58/253/7a5
Director of IT
True Blue Berry Management
September 2013 – Present (1 year 1 month)
South Haven, MI
Manager of IT
MBG Marketing
June 2013 – September 2013 (4 months)
Grand Junction, MI
Manager of IT Development
MBG Marketing
January 2012 – June 2013 (1 year 6 months)
Senior Programmer/Analyst
MBG Marketing
March 2008 – January 2012 (3 years 11 months)
Grand Junction, MI
Programmer/Analyst
MBG Marketing
February 2000 – February 2008 (8 years 1 month)
Grand Junction, MI
Kalamazoo Flower Group
IT Manager
Kalamazoo Flower Group
July 2004 – September 2006 (2 years 3 months)
Kalamazoo, Michigan Area
Acted as IT Manager under contract via MBG.
Blockbuster
October 1999 – February 2000 (5 months)
Santa Monica, CA
Programmer/Analyst
MBG Marketing
March 1999 – September 1999 (7 months)
Grand Junction, MI
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DOL in Action
DOL Finds Multiple Violations at Michigan Blueberry Farms
http://www.dol.gov/_sec/newsletter/2010/20101209.htm
Labor Department investigators have assessed $78,040 in civil money penalties against 17 blueberry growers and nine farm labor contractors in several Western Michigan counties for migrant housing and child labor law violations.
Additionally, the growers were ordered to pay $27,874 in back wages to hand-harvest workers for wage and overtime violations.
“Some of the migrant housing conditions we found during our investigations were deplorable,” said James Smith, district director of the Wage and Hour Division’s Detroit office.
“Among the violations were dilapidated building structures, overcrowding, lack of hot water for bathing and rooms infested by insects. These conditions certainly violated the law, as well as common decency.”
ABC News Investigation: The Blueberry Children
Oct. 30, 2009
By Avni Patel, Angela M. Hill, Asa Eslocker and Brian Ross
Brian Ross Investigative Unit
https://twitter.com/BrianRoss
http://abcnews.go.com/author/brian_ross
ABC News Chief Investigative Correspondent via Nightline
http://abcnews.go.com/Blotter/young-children-working-blueberry-fields-walmart-severs-ties/story?id=8951044
http://abcnews.go.com/Blotter/slideshow?id=8953113&imageid=8953030
www.freshplaza.com/article/98435/US-First-Pick-marks-the-start-of-the-Michigan-blueberry-harvest-season
www.varnumlaw.com/blogs/environmental-law-update/comment-period-extended-for-proposed-epa-rule-substantially-expanding-feder/
http://dockets.justia.com/docket/michigan/miwdce/1:2014cv00910/78726
The 36-page nine-count federal lawsuit Filed 8-26-14 MI by Blueberry Growers Assoc. #1
Blueberry trade secrets suit #2
![Story on MBG in Fruit Growers News](https://upperpeninsulabreakingnews.wordpress.com/wp-content/uploads/2014/09/story-on-mbg-in-fruit-growers-news.png?w=665)
![Blueberry graphic photo by Greg Peterson](https://upperpeninsulabreakingnews.wordpress.com/wp-content/uploads/2014/09/blueberry-graphic.png?w=665)
Blueberry graphic photo by Greg Peterson
![Blueberries Covington, MI by Greg Peterson 8-5-10](https://upperpeninsulabreakingnews.wordpress.com/wp-content/uploads/2014/09/blueberries-covington-area-8-5-10-70.jpg?w=665)
Blueberries Covington, MI by Greg Peterson 8-5-10
![Blueberries Covington, MI by Greg Peterson 8-5-10](https://upperpeninsulabreakingnews.wordpress.com/wp-content/uploads/2014/09/blueberries-covington-area-8-5-10-68.jpg?w=665)
Blueberries Covington, MI by Greg Peterson 8-5-10
![Blueberries Covington, MI by Greg Peterson 8-5-10](https://upperpeninsulabreakingnews.wordpress.com/wp-content/uploads/2014/09/blueberries-covington-area-8-5-10-59.jpg?w=665)
Blueberries Covington, MI by Greg Peterson 8-5-10
![Blueberries Covington, MI by Greg Peterson 8-5-10](https://upperpeninsulabreakingnews.wordpress.com/wp-content/uploads/2014/09/blueberries-covington-area-8-5-10-58.jpg?w=665)
Blueberries Covington, MI by Greg Peterson 8-5-10
![Blueberries Covington, MI by Greg Peterson 8-5-10](https://upperpeninsulabreakingnews.wordpress.com/wp-content/uploads/2014/09/blueberries-covington-area-8-5-10-57.jpg?w=665)
Blueberries Covington, MI by Greg Peterson 8-5-10
![Blueberries Covington, MI by Greg Peterson 8-5-10](https://upperpeninsulabreakingnews.wordpress.com/wp-content/uploads/2014/09/blueberries-covington-area-8-5-10-16.jpg?w=665)
Blueberries Covington, MI by Greg Peterson 8-5-10
![Blueberries near Covington, MI by Greg Peterson 8-5-10](https://upperpeninsulabreakingnews.wordpress.com/wp-content/uploads/2014/09/blueberries-covington-area-8-5-10-15.jpg?w=665)
Blueberries near Covington, MI by Greg Peterson 8-5-10
![MBG Berry Ad 2](https://upperpeninsulabreakingnews.wordpress.com/wp-content/uploads/2014/09/mbg-berry-ad-2.jpg?w=665)
![The Blueberry People logo #3](https://upperpeninsulabreakingnews.wordpress.com/wp-content/uploads/2014/09/the-blueberry-people-logo-3.png?w=665)
![True Blue Farms #4](https://upperpeninsulabreakingnews.wordpress.com/wp-content/uploads/2014/09/true-blue-farms-4.png?w=665)