PSD wins summary judgment for client on trade secret and related claims
In a 21-page opinion, the Superior Court of Connecticut in New London granted summary judgment on the claims against a defendant in LBI, Inc. v. Sparks, et al. PSD argued that the claims were barred by res judicata, agreement of the parties, and by accord and satisfaction. The plaintiff argued that the parties had agreed only on a scope of injunctive relief in a Consent Order to which the parties agreed on the eve of a preliminary injunction hearing. The court ruled that the terms of the Consent Order favored treating it as a final judgment barring monetary claims as well. In part, the court explained that the action involved sophisticated parties represented by counsel who could have used more explicit language if trying to preserve monetary claims. PSD had removed the case to federal court, where the Consent Order had been entered. Plaintiff later attempted but failed to vacate the Consent Order in federal court, which rejected the plaintiff’s efforts as untimely. During an appeal, the Second Circuit remanded the case to state court over plaintiff’s objection.