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Trade Secrets - Why Federal Court is not Always the Way to Go

Reading Court rejects Invista trade secrets case vs DuPont made me think of the limitations of federal court. Federal courts have jurisdiction limited to diversity or federal questions. Obviously, no federal question here:

The lawsuit made various claims that are not within the jurisdiction of a federal court, U.S. District Judge Barbara Jones in Manhattan said in a written ruling

Invista, the Koch subsidiary that brought the lawsuit, "has failed to assert a cognizable federal claim," the judge wrote. The court "lacks subject matter jurisdiction and dismisses Invista's complaint."

She gave Invista the option, however, of refiling portions of its case in a different form.

A spokeswoman for Invista was not immediately available to comment on the ruling.

Koch bought Invista from DuPont for more than $4 billion in 2004.

In the lawsuit, filed in August, Invista had sought to block DuPont and Rhodia from using and disclosing its technology for producing adiponitrile (ADN), a chemical used in the manufacture of nylon. Invista contended it bought the ADN technology from DuPont as part of the 2004 transaction.

Full post as published by Indiana Civil & Business Lawyer on November 04, 2008 (boomark / email).