R.K. Enterprises, LLC v. Pro-Comp Management, Inc., 372 Ark. 199

Summary

The Supreme Court of Arkansas affirmed a $262,303 unjust-enrichment judgment arising from the misappropriation of trade secrets. The court held that the law-of-the-case doctrine barred renewed challenges to subject-matter jurisdiction and that the fair market value of the misappropriated trade secrets was an appropriate measure of unjust-enrichment damages.

Holdings

1. The law-of-the-case doctrine barred Nationwide from relitigating its argument that the court lacked jurisdiction to remand in R.K. I because the same jurisdictional argument had been raised and rejected in R.K. II.
2. The fair market value of misappropriated trade secrets may be used as the measure of unjust-enrichment damages when it represents the benefit received by the defendant from using the trade secrets without paying for them.
3. The circuit court did not clearly err by including the value and development and labor costs of the misappropriated software, lists, and databases in the unjust-enrichment award.
4. Nationwide's possession of the trade secrets for approximately one month did not preclude an award based on their full fair market value.

Questions Presented

1. Whether the law-of-the-case doctrine barred Nationwide from again arguing that the Supreme Court lacked subject-matter jurisdiction in R.K. I to remand for a determination of damages under the Trade Secrets Act.
2. Whether the fair market value of misappropriated trade secrets was an appropriate measure of unjust-enrichment damages.
3. Whether the circuit court clearly erred by including the value and development costs of the software, lists, and databases in the unjust-enrichment award.
4. Whether Nationwide's possession of the trade secrets for only approximately one month precluded an award based on their full fair market value.

Disposition

affirmed