Savor, Inc. v. FMR Corp. and UPromise, Inc.

812 A.2d 894 (Del. 2002) · Supreme Court of Delaware · December 18, 2002 · No. No. 192, 2002

Summary

The Supreme Court of Delaware held that Savor, Inc.'s complaint adequately pleaded a claim for misappropriation of trade secrets under liberal notice-pleading standards. The court concluded that a unique combination of marketing strategies and processes could constitute a trade secret, and that issues concerning secrecy, economic value, and misappropriation could not be resolved on a motion to dismiss. The court reversed dismissal of the third amended complaint but affirmed dismissal of the common-law unfair competition and conspiracy claims as displaced by Delaware's Uniform Trade Secrets Act.

Holdings

  1. The Third Amended Complaint adequately stated a claim for misappropriation of trade secrets because it identified the alleged trade secret as a unique combination of marketing strategies and processes, and alleged economic value, secrecy, confidentiality efforts, and misappropriation sufficiently to provide notice.
  2. The Superior Court correctly dismissed Savor's unfair-competition and conspiracy claims because they sought civil remedies based solely on the alleged misappropriation of a trade secret and were therefore displaced by the Uniform Trade Secrets Act.

Questions Presented

  1. Whether Savor's Third Amended Complaint adequately pleaded a protectable trade secret and misappropriation claim under Delaware's liberal notice-pleading standard.
  2. Whether the alleged combination of generally known marketing components could constitute a trade secret.
  3. Whether Delaware's Uniform Trade Secrets Act displaced Savor's common-law unfair-competition and conspiracy claims based on the same alleged misappropriation.

Disposition

other

Cases Cited (6)

  • Precision Air v. Standard Chlorine of Del., 654 A.2d 403, 406 (Del. 1995)(followed)
  • Ramunno v. Cawley, 705 A.2d 1029, 1034 (Del. 1998)(followed)
  • Kofron v. Amoco Chems. Corp., 441 A.2d 226, 227 (Del. 1982)(followed)
  • Merck & Co. v. SmithKline Beecham Pharmaceuticals Co., 1999 WL 669354, at *15 (Del. Ch. 1999), aff'd, 766 A.2d 442 (Del. 2000)(followed)
  • SmithKline Beecham Pharmaceuticals Co. v. Merck & Co., 766 A.2d 442, 448 (Del. 2000)(followed)
  • Savor v. FMR Corp., Del. Super., C.A. No. 00C-10-249-JRS, 2001 WL 541484 (Apr. 24, 2001)(reviewed)

Cited In (0)

No citing cases on record yet.

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