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Business Law Supreme Court Opinions

by Oumano, Emily

 

SC20821, SC20823 - Dur-A-Flex, Inc. v. Dy (“These appeals arise from a dispute over whether the defendants misappropriated the trade secrets of the plaintiff, Dur-A-Flex, Inc., in violation of the Connecticut Uniform Trade Secrets Act (CUTSA), General Statutes § 35-50 et seq. After a bench trial, the trial court rendered judgment for the plaintiff on certain of its claims and for several defendants on other claims.” The plaintiff appeals from the judgment in favor of the defendants Indue Sales and Services, Inc. (Indue), Christopher Krone, Engineered Coatings, Inc. (ECI), and Merrifield Paint Company, Inc. (Merrifield). The defendants Steven Lipman, Durafloor Industrial Flooring & Coating, Inc. (Durafloor), and ProRez Performance Resins and Coatings, LLC (ProRez), appeal from the judgment against them in favor of the plaintiff. In turn, the plaintiff cross appeals, challenging a number of adverse rulings. We conclude that the trial court incorrectly determined that the plaintiff was not required to prove that Lipman and, through him, Durafloor and ProRez, had knowledge of the plaintiff’s trade secrets and used that knowledge in order to establish the elements of misappropriation under General Statutes § 35-51 (b) (2) (B) (iii). The case must therefore be remanded for a new trial limited to that issue. We further conclude that the trial court applied an incorrect standard when it crafted the monetary and injunctive relief as to Lipman, Durafloor, and ProRez. If the trial court determines on remand that those defendants had knowledge of and used the plaintiff’s trade secrets, it must then apply the correct standard. Finally, we conclude that the trial court incorrectly determined that the noncompete agreement between the plaintiff and the named defendant, Samet Dy (Samet), was unenforceable because continued employment can never constitute consideration for a noncompete agreement. The judgment as to the breach of the noncompete agreement claim must herefore be reversed, and the trial court must determine on remand whether there was sufficient consideration for the noncompete agreement and, if so, whether Samet breached the agreement. We affirm the judgment of the trial court in all other respects.”)

SC20822 - Dur-A-Flex, Inc. v. Dy (“This appeal arises from a dispute between the plaintiff, Dur-A-Flex, Inc., a manufacturer of resinous flooring systems, and the named defendant, Samet Dy, a former employee of the plaintiff, over whether the defendant misappropriated the plaintiff’s trade secrets in violation of the Connecticut Uniform Trade Secrets Act (CUTSA), General Statutes § 35-50 et seq. The plaintiff brought this action, claiming that the defendant had breached his noncompete agreement with the plaintiff, misappropriated the plaintiff’s trade secrets in violation of CUTSA, and breached his duty of confidentiality. The trial court granted the defendant’s motion for summary judgment on the breach of the noncompete agreement and breach of the duty of confidentiality claims. On appeal, the plaintiff claims that (1) the trial court improperly rendered judgment for the defendant on the breach of the noncompete agreement claim on the ground that it was unenforceable for lack of consideration, (2) even if the noncompete agreement was invalid, it became enforceable when the defendant orally reaffirmed his promise not to compete, and (3) the trial court improperly rendered judgment for the defendant on the breach of the duty of confidentiality claim on the ground that it was preempted by CUTSA. With respect to the plaintiff’s first claim, we conclude that the trial court incorrectly determined that the noncompete agreement was unenforceable as a matter of law and that the case must be remanded for further proceedings on that issue. We reject the plaintiff’s second and third claims. We therefore reverse in part and affirm in part the judgment of the trial court.”