Events Leading to the Case
Wilbur-Ellis, a California-based agricultural company, employed Cody Downing in Iowa as a Territory Seed Representative from September 2019 to August 2021. The company specializes in marketing and distributing agricultural products, including seeds, fertilizers, and related services. Its success relies on proprietary product formulations, pricing structures, and long-standing relationships with farmers and dealers.
Downing worked closely with customers and internal data. He accessed confidential information, including customer profiles, rebate structures, pricing margins, and supplier agreements. This information formed a key part of the company’s competitive advantage.
Cause
On August 13, 2021, Downing and fourteen other employees resigned from Wilbur-Ellis. Most were members of the seed team. They disclosed plans to join Simplot, a direct competitor.
Wilbur-Ellis suspected coordination. Downing, still on payroll until August 27, contacted customers, promoted Simplot’s offerings, and disparaged Wilbur-Ellis. He also attended secret meetings with other resigning employees. Forensic analysis of his company-issued laptop revealed he printed invoices and downloaded emails to a flash drive. He searched online for ways to transfer Outlook emails, actions Wilbur-Ellis viewed as intentional data theft.
The company alleged Downing began working for Simplot before officially resigning. During this period, he solicited customers, shared confidential data, and tried to recruit Wilbur-Ellis staff to defect.
Injury
Wilbur-Ellis lost client relationships. One customer informed them on August 23 that it would move business to Simplot, specifically to continue working with Downing. The company feared irreparable harm from Downing’s use of confidential data.
The company’s internal systems and customer trust were compromised. Downing’s actions allegedly violated internal policies and created uncertainty among dealers and partners.
Damages
Wilbur-Ellis sought damages exceeding $75,000. It claimed financial losses due to customer defection, reputational harm, and the cost of mitigating further misuse of confidential data. It also sought exemplary damages for willful misappropriation and attorneys’ fees.
The company argued Downing’s behavior endangered its trade secrets and business relationships and exposed it to ongoing competitive disadvantage.
Key Arguments and Proceedings
Legal Representation
Plaintiff: Wilbur-Ellis Company LLC
Counsel for Plaintiff: Susan K. Fitzke | Grant D. Goerke | Jeremy D. Sosna | Kyle Kennedy | Lauren Clements
Defendant: Cody Downing
Counsel for Defendant: Heidi A. Guttau | Grant K. Dugdale | Zachary Blake Busey
Expert Witness for Plaintiff: Jonathan Karchmer
Interested Party: J.R. Simplot Company
Counsel for Interested Party: Jeffrey D. Harty
Claims
Count I – Breach of Duty of Loyalty
Downing acted against Wilbur-Ellis while still employed, soliciting clients and employees and misusing sensitive information.
Count II – Violation of the Defend Trade Secrets Act (DTSA)
The company claimed Downing misappropriated trade secrets, including pricing data and customer information, in violation of federal law.
Count III – Violation of the Iowa Uniform Trade Secrets Act
Wilbur-Ellis alleged similar conduct violated Iowa’s state trade secrets protections.
Count IV – Tortious Interference with Business Relations
Downing allegedly disrupted existing business relationships and encouraged clients and coworkers to leave Wilbur-Ellis.
Defense
Cody Downing denied all allegations of wrongdoing asserted in the complaint. He contested claims that he misappropriated trade secrets, interfered with business relationships, or breached any duty of loyalty to Wilbur-Ellis. He also denied using or possessing any confidential or proprietary information belonging to the plaintiff after his resignation.
Downing argued that the complaint failed to meet the pleading standards under Rule 8 of the Federal Rules of Civil Procedure. He maintained that Wilbur-Ellis could not prove any protectable trade secret existed or that any such information was misused. Downing contended that the alleged information was publicly available, developed independently, or derived from his own skills and experience.
He asserted multiple affirmative defenses, including claim and issue preclusion, waiver, laches, estoppel, and unclean hands. He argued that any alleged damages were caused by third parties, customer decisions, or Wilbur-Ellis’s own conduct, including poor customer service or inferior products. Downing further claimed Wilbur-Ellis failed to mitigate its damages.
Downing invoked the doctrines of justification and competitor’s privilege, stating that lawful competition motivated his conduct. He also alleged the trade secret claims were made in bad faith and unsupported by actual confidential material.
He challenged the constitutionality and applicability of any punitive damages and reserved the right to assert additional defenses discovered during litigation. Finally, Downing requested that the court dismiss the complaint with prejudice and award him attorneys’ fees and other appropriate relief.
Jury Verdict
On April 24, 2025, the jury ruled in favor of Plaintiff Wilbur-Ellis Company LLC in its trade secret misappropriation lawsuit against Defendant Cody Downing. The jury found that Downing wilfully and maliciously misappropriated trade secrets belonging to the plaintiff. The jury awarded $132,000 in exemplary damages for wilful and malicious misappropriation under the Defend Trade Secrets Act.
The total damages awarded to Wilbur-Ellis reflected both the harm caused by the misappropriation and the egregious nature of the defendant’s conduct.
Court Documents
Court documents are available for purchase upon request at [email protected]
