Inevitability of Inevitable Disclosure Under Florida's Uniform Trade Secrets Act
Co-Written By Mr John M. Guard
On July 20, 2001, a Florida state trial court judge relied on the doctrine of
inevitable disclosure to enjoin a former employee from aiding or assisting a
competitor against his former employer. At stake in the case was whether a
long-time engineering employee could, days after leaving the employment of FMC
Corporation, establish a relationship with a rival competitor, which
manufactured a clone of FMC's juice extractor machine (the extractor). During
his 10 years of employment, the employee had been involved in the engineering
and design of components for the extractor, research and development relating to
the extractor, and knew specific customer information including pricing and
strategy information.
Florida is one of 40 states, including the District of Columbia, that have
adopted the Uniform Trade Secrets Act. The statute provides that "actual or
threatened misappropriation may be enjoined." Fla. Stat. 688.003(1)
(emphasis supplied). The language of the statute itself does not clearly define
what constitutes "threatened misappropriation," and Florida courts
have not precisely defined the term. Courts in approximately 10 other states
have adopted the doctrine of "inevitable disclosure." Under this
doctrine, courts have found a threatened misappropriation when an employee takes
a position with a new employer that will necessarily require the employee to use
his or her former employer's trade secrets. Florida courts have commented that
it is not necessary for an employer to "let the cat out of the bag"
before an injunction can be issued.1
In Fountain, the plaintiff/employer was engaged in the sale of
polyurethane products throughout the United States. The defendant/former
employee had worked as the chief production supervisor for the plaintiff and had
signed as a condition of his employment both a nondisclosure and a noncompete
agreement. The defendant left the plaintiff and began working for a competitor.
The trial court, under both the nondisclosure and noncompete agreements
temporarily enjoined the defendant from disclosing trade secrets and working for
the competitor. The Third District Court of Appeal, upholding the decision,
stated "[i]n short, we think that his knowledge of trade secrets would be
"so intertwined" with his employment as to render ineffective an
injunction directed only toward a prevention of disclosure."2
In the FMC case, Judge Maloney relied on Fountain along with Pepsico
v. Redman...
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