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Buffets, Inc. v. Klinke

Citations: 73 F.3d 965; 1996 WL 12834Docket: No. 94-36222

Court: Court of Appeals for the Ninth Circuit; January 16, 1996; Federal Appellate Court

Narrative Opinion Summary

In the case involving Buffets Inc. (operating as Old Country Buffets), the appellant pursued claims against Paul Klinke and others for misappropriation of trade secrets and violation of the Washington Consumer Protection Act. Buffets Inc. alleged that the defendants unlawfully used its recipes and training manuals to establish a rival buffet restaurant. The district court ruled in favor of the defendants, granting summary judgment on the Consumer Protection Act claim and finding for them on the remaining claims post-bench trial. The court concluded that the recipes and manuals did not constitute trade secrets as they were not novel and were readily ascertainable. Furthermore, the court determined that Buffets Inc. failed to take reasonable measures to maintain the secrecy of its materials, referencing the Uniform Trade Secrets Act. Additionally, under the Washington Consumer Protection Act, the court found no evidence of the defendants' conduct affecting public interest, thus affirming summary judgment. The appellate court upheld the district court's decisions, emphasizing the absence of a competitive advantage derived from the alleged trade secrets and the lack of public interest impact in the defendants' actions.

Legal Issues Addressed

Novelty Requirement for Trade Secrets

Application: OCB's argument that novelty isn’t required contradicts Washington law, which mandates that trade secrets must possess some level of novelty.

Reasoning: OCB's argument that novelty isn’t required contradicts Washington law, which mandates that trade secrets must possess some level of novelty.

Reasonable Efforts to Maintain Secrecy

Application: OCB's failure to adequately protect its job manuals and recipes from disclosure meant they did not qualify as trade secrets.

Reasoning: OCB's allowance for employees to retain job manuals undermined its claim, referencing the Uniform Trade Secrets Act, which requires reasonable measures to protect trade secrets.

Standard for Reviewing Bench Trial Findings

Application: The appellate court respects the trial court's findings unless clearly erroneous, especially concerning witness credibility.

Reasoning: Following a bench trial, a judge's findings of fact are upheld unless clearly erroneous, with deference given to the trial court's assessment of witness credibility.

Trade Secret Definition under RCW 19.108.010(4)

Application: The court determined that OCB's recipes and manuals did not qualify as trade secrets because they were not novel and were readily ascertainable.

Reasoning: The court determined that the Klinkes’ conduct did not violate public interest under the Consumer Protection Act and concluded that the recipes and manuals did not qualify as trade secrets.

Washington Consumer Protection Act Application

Application: The court found that the Klinkes' conduct did not meet the criteria for public interest impact, affirming summary judgment for the defendants.

Reasoning: The district court granted the Klinkes summary judgment because there was no evidence of conduct likely to harm others or a legislative public interest declaration.