Premier Lab Supply, Inc. v. Chemplex Industries, Inc.
94 So. 3d 640
Fla. Dist. Ct. App.2012Background
- Plaintiff-appellee claimed defendant misappropriated appellee's trade secret spooling machine design in 1999.
- Damages trial included actual losses and unjust enrichment, with separate accounting period instructions for unjust enrichment.
- Appellant sought a head-start period limiting actual losses to the time the trade secret remained a secret.
- Appellant ceased using the spooling machine on August 8, 2007, replacing it with a publicly available label machine.
- Jury found $196,500 in actual losses (1999–2007) and $100,000 in unjust enrichment (1999–2003).
- Trial court allowed comparable machines evidence for unjust enrichment but not to reduce actual losses.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether head-start period applies to actual losses | Appellant argued head-start period should cap actual losses. | Appellee argued no such cap is required for actual losses. | No abuse; actual loss not limited to head-start period. |
| Whether the court properly instructed on accounting period and responses to jury questions | appellant urged guidance on trade-secret status and head-start limits. | appellee contends proper instructions already provided. | Court did not err; responses consistent with statute and definitions. |
Key Cases Cited
- CardioVention, Inc. v. Medtronic, Inc., 483 F.Supp.2d 830 (D. Minn. 2007) (actual loss can be measured by the value of the loss of the secret)
- Univ. Computing Co. v. Lykes-Youngstown Corp., 504 F.2d 518 (5th Cir. 1974) (lost sales may be a helpful approach to show injury)
- Jet Spray Cooler, Inc. v. Crampton, 377 Mass. 159 (1979) (head-start rule improper for damages in some contexts)
- Russo v. Ballard Med. Prods., 550 F.3d 1004 (10th Cir. 2008) (no reversible error in applying head-start concept to unjust enrichment)
- RRK Holding Co. v. Sears, Roebuck & Co., 563 F.Supp.2d 832 (N.D. Ill. 2008) (injunctive head-start vs. damages distinction)
