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ARTICLE · 04 APRIL 2014

Properly Analyzing Breach Of A NDA

McDermott Will & Emery
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It is inappropriate to apply the test for the tort of misappropriation of trade secrets when the issue is the alleged violation of a non-compete clause in an NDA.

United StatesIntellectual Property
Zachary Getzelman
Zachary Getzelman
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Loftness Specialized Farm Equip., Inc. v. Twiestmeyer

The U.S. Court of Appeals for the Eighth Circuit has explained that under Minnesota law it is inappropriate to apply the test for the tort of misappropriation of trade secrets and confidential information when the issue is the alleged violation of a non-compete clause in a non-disclosure agreement (NDA).  The Court vacated and remanded the lower court's grant of summary judgment. Loftness Specialized Farm Equip., Inc. v. Twiestmeyer, Case No. 12-4049 (8th Cir., Feb. 11, 2014) (Gruender, J.).

In June 2011, Loftness Specialized Farm Equipment (Loftness) brought a declaratory judgment action against Terry Twiestmeyer, Steven Hood and Twiestmeyer & Associates (T&A), who asserted counterclaims against Loftness for unjust enrichment and two breach of contract claims.

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