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. OK, now do something about this preverted anacronism

  2. William Hartley prosecutor of Wabash county constantly violates people rights. Withholds statement's, is bias towards certain people. His actions have ruined lives and families. In this county you question him or go out of town for a lawyer,he finds a way to make things worse for you. Unfair,biased and crooked.

  3. why is the State trying to play GOD? Automatic sealing of a record is immoral. People should have the right to decide how to handle a record. the state is playing GOD. I have searched for decades, then you want me to pay someone a huge price to contact my son. THIS is extortion and gestapo control. OPEN THE RECORDS NOW. OPEN THE RECORDS NOW. OPEN THE RECORDS NOW.

  4. I haven't made some of the best choices in the last two years I have been to marion county jail 1 and two on three different occasions each time of release dates I've spent 48 to 72 hours after date of release losing a job being denied my freedom after ordered please help

  5. Out here in Kansas, where I now work as a government attorney, we are nearing the end of a process that could have relevance in this matter: "Senate Bill 45 would allow any adult otherwise able to possess a handgun under state and federal laws to carry that gun concealed as a matter of course without a permit. This move, commonly called constitutional carry, would elevate the state to the same club that Vermont, Arizona, Alaska and Wyoming have joined in the past generation." More reading here: http://www.guns.com/2015/03/18/kansas-house-panel-goes-all-in-on-constitutional-carry-measure/ Time to man up, Hoosiers. (And I do not mean that in a sexist way.)

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