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ARTICLE · 25 JULY 2019

Trade Secret Claims Tanked Based Upon Delay

Recently, the Eighth Circuit Court of Appeals considered the three-year statute of limitations provisions of the Defend Trade Secret Act (DTSA) and Iowa Trade Secrets Act (UTSA).

United StatesIntellectual Property

Steven Jedlinski is a Partner in our Chicago office.

Recently, the Eighth Circuit Court of Appeals considered the three-year statute of limitations provisions of the Defend Trade Secret Act (DTSA) and Iowa Trade Secrets Act (UTSA). In the underlying district court action, CMI Roadbuilding, Inc. brought a number of claims against Iowa Parts, Inc., related to a trade secret dispute over engineering drawings and parts for fabrication machinery in the asphalt industry. The district court disposed the entire case on summary judgment finding that the CMI's claims were timed barred.

On appeal, CMI argued that that the ruling was contrary to the discovery rule — which tolls the statute of limitations until the date that harm is or reasonably should have been discovered. The discovery rule is written into both the DTSA and UTSA 18 U.S.C. § 1836(d); Iowa Code § 550.8. The appellate court rejected the argument and confirmed that the statute of limitations clock for CMI's

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