AAA Air Support Inc. v. Sealey; Aerotech Alloys, LLC
Published: Feb. 4, 2012 | Result Date: Jan. 12, 2012 | Filing Date: Jan. 1, 1900 |Case number: YC060523 Arbitration – Defense
Facts
AAA Air Support ("AAA") sued its former employee for alleged violation of the Uniform Trade Secrets Act, breach of fiduciary duty, intentional interference with prospective economic advantage, and injunctive relief. Plaintiff later added the employee's new employer to the intentional interference and injunctive relief claims.
Contentions
PLAINTIFF'S CONTENTIONS:
AAA claimed that its former employee used AAA's trade secrets to advance his own commercial interests after he left AAA and conspired to divert AAA's prospective business.
DEFENDANT'S CONTENTIONS:
Defense claimed that AAA's trade secrets did not qualify for protection because the information was generally known to the public and other persons in the industry and was never the subject of efforts to maintain secrecy, and also on grounds that as an employee he was not a fiduciary of his employer. Defendants showed that they were legally competing with AAA and had not solicited business away from AAA.
Result
Defense verdict and an award of $32,353 for costs incurred.
Other Information
Arbitrator found that claimant failed to establish the elemental/threshold requirement for having a trade secret, failed to show that it took adequate steps to protect its alleged trade secrets, and failed to show that there was a fiduciary relationship. Plaintiff filed an appeal based on the improper award of costs. The parties thereafter resolved all claims. FILING DATE: Aug. 27, 2009.
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