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M.C. Dean, Inc. v. City of Miami Beach

Citations: 199 F. Supp. 3d 1349; 2016 WL 4179807; 2016 U.S. Dist. LEXIS 184589Docket: CASE NO. 16-21731-CIV-ALTONAGA/O’Sullivan

Court: District Court, S.D. Florida; August 8, 2016; Federal District Court

Narrative Opinion Summary

In this case, M.C. Dean, Inc., a subcontractor specializing in electrical design, filed a complaint against the City of Miami Beach and the International Brotherhood of Electrical Workers, Local 349, alleging trade secret misappropriation under the Defend Trade Secrets Act (DTSA) and the Florida Uniform Trade Secrets Act (FUTSA). M.C. Dean claimed that its payroll information, considered a trade secret, was disclosed by the City to Local 349 under the Florida Public Records Act, despite objections. The defendants moved to dismiss the complaint under Federal Rule of Civil Procedure 12(b)(6), arguing M.C. Dean failed to allege reasonable steps taken to protect its trade secrets and specific acts of misappropriation. The court granted the motion, agreeing that M.C. Dean did not sufficiently demonstrate efforts to maintain secrecy or improper acquisition by the defendants. The court allowed M.C. Dean the opportunity to amend its complaint by August 22, 2016, while reserving the decision on attorney's fees requested by the defendants until after any appeals. The ruling emphasized the necessity for plaintiffs to allege concrete protective measures and clear instances of misappropriation to survive a motion to dismiss under Rule 12(b)(6).

Legal Issues Addressed

Defend Trade Secrets Act (DTSA) and Florida Uniform Trade Secrets Act (FUTSA)

Application: The plaintiff alleged violations of both DTSA and FUTSA, but the court found insufficient factual allegations to support the claims of misappropriation and reasonable steps to maintain secrecy.

Reasoning: M.C. Dean alleges that the defendants caused misappropriation of its trade secrets and has taken steps to safeguard sensitive information, only disclosing payrolls to Clark and maintaining strict internal confidentiality regarding employee identities.

Misappropriation of Trade Secrets

Application: The court found that the plaintiff failed to sufficiently allege that the information was obtained through improper means or that the defendants had a duty to maintain its confidentiality.

Reasoning: M.C. Dean does not claim that the information was obtained through improper means like theft or bribery.

Motion to Dismiss under Federal Rule of Civil Procedure 12(b)(6)

Application: The court granted the defendants' motion to dismiss as the plaintiff failed to state a plausible claim for relief.

Reasoning: The Court reviewed the complaint, M.C. Dean's response, and the defendants' reply, ultimately granting the motion to dismiss.

Reasonable Measures to Maintain Trade Secret Secrecy

Application: The court determined that M.C. Dean did not take adequate steps to maintain the secrecy of its payroll information, undermining its claims under DTSA and FUTSA.

Reasoning: M.C. Dean allegedly provided the payroll information to Clark without imposing restrictions on its use.