Opinion ID: 1496190
Heading Depth: 1
Heading Rank: 2

Heading: Competitive advantage

Text: The Chancellor found that using the information in conjunction with other available information would give valuable information to a competitor. There was evidence before her that a competitor could use the information sought to gain an advantage enabling it to determine whether it would be worthwhile to target a particular wholesaler for competition. The Commissioner argues that release of the stamp deputy allowance information alone would not give a competitive advantage to McLane. We disagree and affirm the Chancellor's finding that release of the information would confer advantage on a competitor. We review chancery cases de novo but will not reverse the findings of fact by the Chancellor unless they are clearly erroneous. Brasel v. Brasel, 313 Ark. 337, 854 S.W.2d 346 (1993). We give due regard to the superior position of the Chancellor to judge the credibility of the witnesses. Ark. R.Civ.P. 52(a); Brasel v. Brasel, supra . We consider the evidence in the light most favorable to the appellee. Guaranty Nat'l Ins. v. Denver Roller, Inc., 313 Ark. 128, 854 S.W.2d 312 (1993). The burden is upon the appellant to show that the findings are erroneous. Burson v. Day, 284 Ark. 515, 683 S.W.2d 917 (1985). Bob Douglas, an Arkansas wholesaler, testified that McLane is a large, strong company in the business of wholesaling cigarettes. The profit margin on cigarettes is small and thus dependent on volume. The stamp deputy allowance information could be used by McLane in conjunction with other reports to determine the market share of a wholesaler in a particular area. By a process of extrapolation McLane could learn the share of a wholesaler's gross profits attributable to cigarette sales. Having that information, McLane could know the extent of a wholesaler's business attributable to other items such as candy and thus know what it would take to undercut prices on those other items sufficiently to take away customers or run the wholesaler out of business. Mr. Douglas's testimony was not refuted by any other witnesses, and we hold it sufficient to support the Chancellor's decision. Affirmed.