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Premier Lab Supply, Inc. v. Chemplex Industries, Inc.
94 So. 3d 640
Fla. Dist. Ct. App.
2012
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Background

  • 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)
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Case Details

Case Name: Premier Lab Supply, Inc. v. Chemplex Industries, Inc.
Court Name: District Court of Appeal of Florida
Date Published: Jul 18, 2012
Citation: 94 So. 3d 640
Docket Number: No. 4D10-2045
Court Abbreviation: Fla. Dist. Ct. App.