ILNews

Court rules on discovery of trade secrets

Michael W. Hoskins
January 1, 2007
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A tire making formula is considered a trade secret and doesn't have to be disclosed in discovery, the Indiana Supreme Court ruled today.

The unanimous 11-page ruling comes in a much-anticipated first impression case of Bridgestone Americas Holding, Inc. v. Violet Mayberry, et al., No. 48A02-0504-CV-368, which stemmed from a fatal August 2001 accident in which a woman lost control of her vehicle on Interstate 69 after one of the tires came apart. Her family sued the tire maker; during discovery they asked for certain documents that included the skim stock formula to determine what contributed to the tire tread coming apart and, ultimately, Harmony B. Wigley's death.

Madison Superior Judge Thomas Newman ultimately issued a protective order compelling Bridgestone to disclose its skim stock formula, and the tire maker appealed. The Court of Appeals affirmed the decision in August 2006, and the Supreme Court took the case earlier this year.

In accepting the case, justices considered how closely trade secrets should be guarded when it comes to discovery and whether certain information should be disclosed at all.

"We encounter here a question of first impression: how should an Indiana court analyze a request to protect a trade secret from pre-trial discovery?" Chief Justice Randall T. Shepard wrote. "We conclude that the test prevailing in other jurisdictions is suitable for application under Indiana Trial Rule 26(C). In this case, the demanding party did not demonstrate the necessity of disclosing the secret."

The chief justice wrote that the application of Rule 26 to trade secrets should be informed by Indiana's adoption of the Uniform Trade Secrets Act (UTSA), which has been adopted in all but five states and provides a common legal framework for protecting trade secrets from misappropriation.

In turning to the UTSA, the court focuses on a three-part balancing test as the proper analysis for determining whether "good cause" has been shown to protect a trade secret.

Justices agree that happened here, that Bridgestone showed the formula was a trade secret, and the family didn't show why it was necessary. But the court also issued a word of caution:

"Of course, trade secrets may be valuable during the course of litigation not involving misappropriation claims, and there are moments when justice requires disclosure," Chief Justice Shepard wrote. "Still, courts must proceed with care when supervising the discovery of trade secrets, lest the judiciary be used to achieve misappropriation or mere leverage."

Today's ruling reverses the trial court's protective order directing disclosure of Bridgestone's skim stock formula and remands the case for further proceedings on the merits.
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  1. Call it unauthorized law if you must, a regulatory wrong, but it was fraud and theft well beyond that, a seeming crime! "In three specific cases, the hearing officer found that Westerfield did little to no work for her clients but only issued a partial refund or no refund at all." That is theft by deception, folks. "In its decision to suspend Westerfield, the Supreme Court noted that she already had a long disciplinary history dating back to 1996 and had previously been suspended in 2004 and indefinitely suspended in 2005. She was reinstated in 2009 after finally giving the commission a response to the grievance for which she was suspended in 2004." WOW -- was the Indiana Supreme Court complicit in her fraud? Talk about being on notice of a real bad actor .... "Further, the justices noted that during her testimony, Westerfield was “disingenuous and evasive” about her relationship with Tope and attempted to distance herself from him. They also wrote that other aggravating factors existed in Westerfield’s case, such as her lack of remorse." WOW, and yet she only got 18 months on the bench, and if she shows up and cries for them in a year and a half, and pays money to JLAP for group therapy ... back in to ride roughshod over hapless clients (or are they "marks") once again! Aint Hoosier lawyering a great money making adventure!!! Just live for the bucks, even if filthy lucre, and come out a-ok. ME on the other hand??? Lifetime banishment for blowing the whistle on unconstitutional governance. Yes, had I ripped off clients or had ANY disciplinary history for doing that I would have fared better, most likely, as that it would have revealed me motivated by Mammon and not Faith. Check it out if you doubt my reading of this, compare and contrast the above 18 months with my lifetime banishment from court, see appendix for Bar Examiners report which the ISC adopted without substantive review: https://www.scribd.com/doc/299040839/2016Petitionforcert-to-SCOTUS

  2. Wow, over a quarter million dollars? That is a a lot of commissary money! Over what time frame? Years I would guess. Anyone ever try to blow the whistle? Probably not, since most Hoosiers who take notice of such things realize that Hoosier whistleblowers are almost always pilloried. If someone did blow the whistle, they were likely fired. The persecution of whistleblowers is a sure sign of far too much government corruption. Details of my own personal experience at the top of Hoosier governance available upon request ... maybe a "fake news" media outlet will have the courage to tell the stories of Hoosier whistleblowers that the "real" Hoosier media (cough) will not deign to touch. (They are part of the problem.)

  3. So if I am reading it right, only if and when African American college students agree to receive checks labeling them as "Negroes" do they receive aid from the UNCF or the Quaker's Educational Fund? In other words, to borrow from the Indiana Appellate Court, "the [nonprofit] supposed to be [their] advocate, refers to [students] in a racially offensive manner. While there is no evidence that [the nonprofits] intended harm to [African American students], the harm was nonetheless inflicted. [Black students are] presented to [academia and future employers] in a racially offensive manner. For these reasons, [such] performance [is] deficient and also prejudice[ial]." Maybe even DEPLORABLE???

  4. I'm the poor soul who spent over 10 years in prison with many many other prisoners trying to kill me for being charged with a sex offense THAT I DID NOT COMMIT i was in jail for a battery charge for helping a friend leave a boyfriend who beat her I've been saying for over 28 years that i did not and would never hurt a child like that mine or anybody's child but NOBODY wants to believe that i might not be guilty of this horrible crime or think that when i say that ALL the paperwork concerning my conviction has strangely DISAPPEARED or even when the long beach judge re-sentenced me over 14 months on a already filed plea bargain out of another districts court then had it filed under a fake name so i could not find while trying to fight my conviction on appeal in a nut shell people are ALWAYS quick to believe the worst about some one well I DID NOT HURT ANY CHILD EVER IN MY LIFE AND HAVE SAID THIS FOR ALMOST 30 YEARS please if anybody can me get some kind of justice it would be greatly appreciated respectfully written wrongly accused Brian Valenti

  5. A high ranking Indiana supreme Court operative caught red handed leading a group using the uber offensive N word! She must denounce or be denounced! (Or not since she is an insider ... rules do not apply to them). Evidence here: http://m.indianacompanies.us/friends-educational-fund-for-negroes.364110.company.v2#top_info

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