LYN-FLEX WEST, INC., Plaintiff/Appellant, v. WAYNE DIECKHAUS, et al., Defendants/Respondents., 24 S.W.3d 693

Summary

Plaintiff manufactured shoe insoles. Defendant individuals were former officers of plaintiff corporation. After death of plaintiff's sole stockholder, plaintiff was operated by trustee of his estate. Defendant individuals attempted to buy plaintiff, but after efforts proved unsuccessful, defendant individuals resigned and formed defendant corporation. They then began to compete directly with plaintiff. Plaintiff sued defendants, alleging they misappropriated trade secrets in violation of the Uniform Trade Secrets Act and tortious interference with a business expectancy. The trial court granted a directed verdict for defendant, finding that the price book was not a trade secret. The court of appeals reversed since plaintiff established facts sufficient to support a finding that price book was a trade secret, and that individual defendants misappropriated trade secrets by taking the price book and using it for the benefit of defendant corporation.