Civil Practice – Preliminary Injunction – Trade Secrets

While they still worked for plaintiff Red Valve, Inc., but were forming the defendant-competitor Titan Valve, Inc., defendants Payne and Aedo misappropriated Red Valve’s trade secrets. Defendants’ use of Red Valve’s trade secrets (price data, customer database, design documents, and some of its manufacturing processes) would damage plaintiffs’ business, adversely affect Red Valve’s market position, and dull its competitive advantage. Red Valve should not be required to submit to such injury.

Defendants and all other persons in active concert with them are preliminarily enjoined from using or disclosing plaintiffs’ trade secrets.

However, plaintiffs have failed to show defendants’ actual or threatened misappropriation of Red Valve’s vendor lists. The only evidence plaintiffs offer is Titan’s order of parts from two vendors that Red Valve uses. However, the services these two vendors provide are public knowledge. Plaintiffs have failed to show a likelihood of success on their claim for misappropriation of Red Valve’s vendor lists at this time.

Red Valve, Inc. v. Titan Valve, Inc. (Lawyers Weekly No. 020-030-18, 35 pp.) (Louis Bledsoe III, J.) David Allen and Benjamin Chesson for plaintiffs; Michael Carpenter, Marshall Walker, and Christopher Welchel for defendants. 2018 NCBC 31