Litigation

As Predicted, Arkansas Trade Secret Case Ends Where it Started in 2004

By H. William Allen et al.

The long-standing trade secret dispute between R.K. Enterprises and Pro-Comp Management (previously posted 1/10/07) has finally come to an end on the third appeal. True to form, it took two published opinions to end the case. See Pro-Comp Management, Inc. v. R.K. Enterprises, LLC, No. 07-648 (1/24/08) and R.K. Enterprises, LLC v. Pro-Comp Management, Inc., No. 07-741 (1/24/08).

Recap of the first two appeals

In 2004, the trial court let R.K. Enterprises choose if it wanted judgment on the conversion claim or trade secrets claim. They chose conversion, and the court awarded damages of $262,303. The supreme court reversed and said the Arkansas Trade Secrets Act (ATSA) is the exclusive remedy. On remand, the trial court ruled the damages were too speculative for the ATSA. The supreme court again reversed and said the trial court may consider the general law of unjust enrichment in awarding damages under the ATSA.

Trial court proceedings the third time around

With the case back for a third determination of damages, the trial court awarded damages of . . . wait for it . . . $262, 303. The trial court did not grant attorney's fees or prejudgment interest. Both parties appealed again.

And on appeal a final time

The supreme court affirmed the judgment in all respects. The amount of unjust enrichment was not definite so as to qualify for prejudgment interest, and R.K. Enterprises had already failed to obtain a ruling on its motion for attorney's fees prior to the second appeal. After 4 years of postjudgment litigation and 4 published opinions, the parties find themselves right where they started in 2004.

Full post as published by Arkansas Business Litigation Blog on January 24, 2008 (boomark / email).