ILNews

Court rules on discovery of trade secrets

Michael W. Hoskins
January 1, 2007
Keywords
Back to TopCommentsE-mailPrintBookmark and Share
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.
ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Joseph Buser, Montgomery County Chief Prosecutor, has been involved in both representing the State of Indiana as Prosecutor while filing as Representing Attorney on behalf of himself and the State of Indiana in Civil Proceedings for seized cash and merchandise using a Verified Complaint For Forfeiture of Motor Vehicle, Us Currency And Reimbursement Of Costs, as is evident in Montgomery County Circuit Court Case Number 54C01-1401-MI-000018, CCS below, seen before Judge Harry Siamas, and filed on 01/13/2014. Sheriff Mark Castille is also named. All three defendants named by summons have prior convictions under Mr. Buser, which as the Indiana Supreme Court, in the opinion of The Matter of Mark R. McKinney, No. 18S00-0905-DI-220, stated that McKinney created a conflict of interest by simultaneously prosecuting drug offender cases while pocketing assets seized from defendants in those cases. All moneys that come from forfeitures MUST go to the COMMON SCHOOL FUND.

  2. I was incarcerated at that time for driving while suspended I have no felonies...i was placed on P block I remember several girls and myself asking about voting that day..and wasn't given a answer or means of voting..we were told after the election who won that was it.

  3. The number one way to reduce suffering would be to ban the breeding of fighting dogs. Fighting dogs maim and kill victim dogs Fighting dogs are the most essential piece of dog fighting Dog fighting will continue as long as fighting dogs are struggling to reach each other and maul another fih.longaphernalia

  4. Oh, and you fail to mention that you deprived the father of far FAR more time than he ever did you, even requiring officers to escort the children back into his care. Please, can you see that you had a huge part in "starting the war?" Patricia, i can't understand how painfully heartbreak ithis ordeal must have been for you. I read the appellate case and was surprised to see both sides of the story because your actions were harmful to your child; more so than the fathers. The evidence wasn't re weighed. It was properly reviewed for abuse of discretion as the trial court didn't consider whether a change of circumstance occurred or follow and define the statutes that led to their decision. Allowing a child to call a boyfriend "daddy" and the father by his first name is unacceptable. The first time custody was reversed to father was for very good reason. Self reflection in how you ultimately lost primary custody is the only way you will be able heal and move forward. Forgiveness of yourself comes after recognition and I truly hope you can get past the hurt and pain to allow your child the stability and care you recognized yourself that the father provides.

  5. Patricia, i can't understand how painfully heartbreak ithis ordeal must have been for you. I read the appellate case and was surprised to see both sides of the story because your actions were harmful to your child; more so than the fathers. The evidence wasn't re weighed. It was properly reviewed for abuse of discretion as the trial court didn't consider whether a change of circumstance occurred or follow and define the statutes that led to their decision. Allowing a child to call a boyfriend "daddy" and the father by his first name is unacceptable. The first time custody was reversed to father was for very good reason. Self reflection in how you ultimately lost primary custody is the only way you will be able heal and move forward. Forgiveness of yourself comes after recognition and I truly hope you can get past the hurt and pain to allow your child the stability and care you recognized yourself that the father provides.

ADVERTISEMENT