Warren Terzian LLP

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Suing for trade secrets theft or suing for something else [<em>Manchester v. GMBH</em>]

If you’re suing someone for trade secret theft, that and breach of contract are usually the only two claims you got. Because the California Uniform Trade Secrets Act preempts everything else — even if the confidential information you’re suing over turns out not to be a trade secret.

For this reason, you can dismiss these other claims at the outset. Scores of courts recognize this, including Judge Alsup in Waymo v. Uber.

Yet there’s always an exception. And Manchester v. GMBH recognizes it.

That court agrees that there are two viable claims founded upon trade secrets: trade secret misappropriation and breach of contract. But unlike Waymo, it concludes that the Act does not preempt claims founded upon confidential information that isn’t a trade secret.

Manchester also recognizes a low pleading bar for trade secrets to survive a motion to dismiss.

No action items here. Just reporting.