Lyn-Flex West, Inc. v. Dieckhaus

24 S.W.3d 693 (1999)

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Lyn-Flex West, Inc. v. Dieckhaus

Missouri Court of Appeals
24 S.W.3d 693 (1999)

Rich Walter headshot
  • Written by Rich Walter, JD

Facts

Lyn-Flex West, Inc. (Lyn-Flex) (plaintiff) compiled and maintained years’ worth of confidential customer sales records in its so-called price book. Lyn-Flex employees regularly relied on price-book records to make business decisions. Lyn-Flex sued Walk Easy Manufacturing Company, Inc. (Walk Easy) and Dick Dieckhaus (defendants) for violating Missouri’s version of the Uniform Trade Secrets Act (UTSA). Lyn-Flex alleged that Dieckhaus, a former Lyn-Flex executive, took a copy of the price book with him when he left Lyn-Flex to set up Walk Easy as a rival manufacturer of shoe insoles, and that Dieckhaus used the price book to strengthen Walk Easy’s competitive position at Lyn-Flex’s expense. The trial judge ruled that the evidence failed to establish that the price book constituted a trade secret. The judge reasoned that Lyn-Flex did not take measures commonly used to protect the secrecy of confidential materials, such as marking the price book confidential or making Lyn-Flex employees sign confidentiality or noncompete agreements. The judge directed the jury’s verdict for Dieckhaus and Walk Easy. Lyn-Flex appealed to the Missouri Court of Appeals.

Rule of Law

Issue

Holding and Reasoning (Simon, J.)

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Casebooks

Intellectual Property

Key Terms

  • Directed VerdictAlso known as an instructed verdict, a verdict directed by the judge after finding that a party has not satisfied its burden of proof. To direct a verdict, the judge must find that there is no legally sufficient evidentiary basis from which a reasonable jury could reach any other conclusion.
  • Fiduciary DutyAn individual’s obligation to act in the best interests of another party with whom a special relationship exists.
  • Trade SecretA formula, method, program, device, or other business material that is kept confidential and whose competitive value is enhanced by the maintenance of such confidentiality.
  • RestatementA highly persuasive treatise issued by the American Law Institute that explains a particular area of law.
  • Uniform Trade Secrets ActA template first published by the Uniform Law Commission in 1979 for state laws intended to protect information that derives its economic value from its not being generally known or ascertainable by unauthorized persons.

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