Clorox Co. v. S. C. Johnson & Son

627 F. Supp. 2d 954 (2009)

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Clorox Co. v. S. C. Johnson & Son

United States District Court for the Eastern District of Wisconsin
627 F. Supp. 2d 954 (2009)

RW

Facts

Both Clorox Company (plaintiff) and its archrival, S. C. Johnson & Son, Inc. (Johnson) (defendant), were developing so-called green, i.e., plant-based, cleaning products. Clorox protected its trade secrets through internal confidentiality, data-security policies, and confidentiality agreements with its employees. Timothy Bailey, a Clorox executive with extensive access to Clorox trade secrets, left Clorox under suspicious circumstances and went to work for Johnson. Clorox sued Johnson for misappropriation of trade secrets under California’s version of the Uniform Trade Secrets Act (UTSA). Clorox petitioned the federal district court for a preliminary injunction and temporary restraining order (TRO) blocking Johnson from availing itself of Bailey’s services. Clorox pleaded that Bailey and Johnson had knowingly used, disclosed, or threatened to use or disclose wrongfully obtained trade secrets pertaining to Clorox’s upcoming launch of a line of green products. Clorox argued that Bailey would inevitably disclose Clorox’s green-product plans to Johnson if he had not done so already. Johnson moved to dismiss the case.

Rule of Law

Issue

Holding and Reasoning (Stadtmueller, J.)

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