Not-so inevitable disclosure

The plaintiff in Global Supply Chain Solutions LLC v. Riverwood Solutions, Inc, a trade-secrets dispute, argued “the inevitable disclosure doctrine applies to provide evidence raising a fact issue on damages.” The Fifth Court observed that Texas has adopted the Unitorm Trade Secrets Act, which allows injunctive relief in connection with “threatened misappropriation” of trade secrets. But under Fifth Court precedent, temporary-injunction proceedings about trade secrets do not put the “ultimate merits” at issue; accordingly, “a threatened misappropriation for purposes of a temporary injunction is not a substitute for evidence of the ‘actual loss caused by misappropriation and the unjust enrichment caused by misappropriation that is not taken into account in computing actual loss’ to raise a fact issue on damages in response to a motion for summary judgment.” No. 05-18-00188-CV (Aug. 16, 2019) (mem. op.)