5 minute read | October.02.2013
Trade secrets cases often involve intrigue and juicy facts, like departing employees downloading thousands of computer files under cover of darkness. But given that such claims often turn on disputed facts, we wondered: How successful are summary judgment motions in trade secrets cases?
For the non-lawyers out there, a motion for summary judgment is basically a request that a court throw out a case before trial on the theory that no reasonable jury could find in favor of the other party. Are these types of requests worth the often significant time and cost needed to prepare and decide them? We’ve seen some courts say “No,” and refuse to entertain any summary judgment procedure at all.
While each case is unique, Trade Secrets Watch sifted through publicly-available judicial opinions for trends. We reviewed 40 of the most recent state and federal trial court orders in California, one of the states with the most trade secret litigation. And we were specifically looking at motions for summary judgment and/or summary adjudication (MSJs) of claims for trade secret misappropriation. Based on our review, we found:
SUCCESS RATE = 30-40% |
Motions for summary judgment in trade secrets cases tend to be granted about 40 percent of the time. This trend applies equally at the state and federal level. However, the success rate drops to about 30 percent when you exclude motions based on the statute of limitations and the focus is on the merits. |
MOST LIKELY TO BE GRANTED |
Motions for summary judgment tend to be granted based on three types of arguments:
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LEAST LIKELY TO BE GRANTED |
Motions for summary judgment tended to be denied in three types of situations:
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