Benchslaps

Benchslap Trifecta -- Courting A Judge's Ire

That is certainly one way to handle discovery -- the wrong way, mind you, but a way.

By  
on

By now, everyone knows the first rule of Fight Club, but do you know the first rule of a successful trade secret claim?

According to a benchslap coming to us from Judge Thomas C. Wheeler of the United States Court of Federal Claims, the first rule is name your trade secret. While I’ve never really practiced in this area of the law, frankly it seems pretty damn intuitive. Which is why, after two years of discovery, Judge Wheeler is pretty frustrated that plaintiff Demodulation Inc. cannot adequately name the trade secret they allege the U.S. government is infringing upon.

To this day, Demodulation’s responses to the Government’s request remain entirely inadequate. It is Plaintiff who is asserting the trade secret claims in this litigation and it should know what those trade secrets are. Demodulation cannot put the burden on the Government to find the trade secrets simply by pointing out where they can be found.

D’oh! Well that is certainly one way to handle discovery — the wrong way, mind you, but a way. Especially when the court has issued three orders to identify the trade secrets.

At the very least, this method is a way to have your claims dismissed — you know, the exact opposite of what you should be trying to accomplish.

Because Demodulation has been unable to describe its trade secret claims with any sufficient detail, the Court concludes that Plaintiff has no trade secrets to be protected, and thus, the Government could not have misappropriated any of Plaintiff’s trade secrets. The Court also finds that it would be unfair to the Government to allow such claims to go forward. By not identifying its trade secrets, the Government is unable to determine which, if any, trade secret has been misappropriated, and accordingly, cannot develop an adequate defense.

When you rile up a judge like this, you can’t be surprised when they decide you’ve acted in bad faith.

Sponsored

Here, the Court finds that [former plaintiff’s counsel Mr. Benjamin D.] Light’s conduct rises to the level of bad faith. By not identifying any trade secret claims, it suggests to the Court that Plaintiff has no trade secrets to be protected. Thus, without any trade secrets, its claims for misappropriation of trade secrets were entirely frivolous. Id. The continued maintenance of the frivolous trade secret claims and the failure to respond adequately to discovery requests unreasonably and vexatiously multiplied the proceedings in the case. Such conduct cannot be condoned.

Vexatious, frivolous, and bad faith. That’s the official trifecta of a benchslap.

The full benchslap can be read on the next page.

Sponsored

1 2Next »

Topics

, , , , , ,