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Justia Daily Opinion Summaries

US Court of Appeals for the Third Circuit
May 1, 2020

Table of Contents

Advanced Fluid Systems Inc v. Huber

Business Law, Intellectual Property

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US Court of Appeals for the Third Circuit Opinions

Advanced Fluid Systems Inc v. Huber

Docket: 19-1722

Opinion Date: April 30, 2020

Judge: Jordan

Areas of Law: Business Law, Intellectual Property

Huber stole confidential information from his employer AFS (a manufacturer of hydraulic systems) for an AFS competitor, Livingston, and later for a company he created, INSYSMA, to compete against both AFS and Livingston. AFS eventually sued, alleging trade secret misappropriation claims under the Pennsylvania Uniform Trade Secrets Act. On summary judgment, the district court held as a matter of law that Huber and INSYSMA were liable under the Trade Secrets Act for misappropriating AFS’s trade secrets. Following a bench trial, the court held Livingston and two of its employees jointly and severally liable with Huber and INSYSMA for that misappropriation, and held all defendants except a Livingston employee and INSYSMA liable for breach of fiduciary duty or aiding and abetting that breach, and awarded compensatory damages, exemplary damages, and punitive damages from various defendants. The Third Circuit affirmed, rejecting arguments that AFS does not “own” the purported trade secrets at issue; that the claimed trade secrets are not actually protectable under the Trade Secrets Act, that the Livingston Parties were prejudiced by their counsel’s conduct at and following the trial, and that the damages awards were unwarranted. The Act only requires that a plaintiff lawfully possess the trade secrets it wishes to vindicate.

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