Facts

Pine Valley Inc., developed recipes for, and provided, frozen fried rice products to grocery chain Trader Joe's. The defendants, two subsidiaries of Japanese company, Ajinomoto, in turn made the rice products for Pine Valley. Pine Valley sued defendants for breach of written contract, intentional interference with prospective economic advantage, fraud, negligent misrepresentation, unfair competition, breach of fiduciary duty, aiding and abetting breach of fiduciary duty, violation of California Uniform Trade Secrets Act, and misappropriation of confidential and/or proprietary information. Ajinomoto North America Inc. filed a cross-complaint against Pine Valley for breach of contract, account stated, and restitution for unjust enrichment.

PLAINTIFF'S CONTENTIONS:
Pine Valley Inc. contended that the Ajinomoto defendants stole plaintiff's trade secrets, violated a confidentiality agreement by wrongfully and unlawfully trying to compete directly with plaintiff and wrongfully took the business from plaintiff that it engaged with Trader Joe's, and that Trader Joe's, aware of the confidentiality agreement, encouraged and facilitated Ajinomoto's wrongful actions.

Result

The jury found that Ajinomoto Frozen Foods USA Inc. breached the written contract, and that both defendant subsidiaries of Ajinomoto intentionally interfered with prospective economic advantage, committed fraud, and violated the Uniform Trade Secrets Act. It also found that Ajinomoto willfully and maliciously misappropriated Pine Valley's trade secret, and awarded Pine Valley $2.8 million in damages.

Other Information

The court is to award punitive damages, an injunction, and attorney fees, to be determined. FILING DATE: July 9, 2014.