Opinion ID: 696583
Heading Depth: 2
Heading Rank: 2

Heading: Omission of the Word Use

Text: 12 Under N.C.Gen.Stat. Sec. 66-152(1), misappropriation of a trade secret is defined as the acquisition, disclosure, or use of a trade secret of another without express or implied authority or consent, unless the secret was derived independently, by reverse engineering, or from a person with the authority to disclose it. At trial, the court both read and submitted to the jury a number of interrogatories. Of these, interrogatories 2a, 3a, and 4a all asked of the jury the following question with regard to each of the three defendants respectively: 13 Did the defendant ... know or should have known [sic] of AG Systems' trade secrets and disclose or sell AG Systems' trade secrets without the express or implied authority or consent of AG Systems? (emphasis added). 14 The jury answered No to questions 2a, 3a, and 4a, and the district court accordingly found that defendants did not misappropriate AG Systems' trade secrets. Although at trial AG Systems failed to object to interrogatories 2a, 3a, and 4a, it now argues that the magistrate committed plain error in formulating jury instructions that were contrary to section 66-152(1). 15 Initially, we are of opinion that in this circuit, there is no plain-error exception to a party's failure to object to the form of special interrogatories, and thus that AG Systems has waived this challenge on appeal. Deadwyler v. Volkswagen of America, Inc., 884 F.2d 779, 782 (4th Cir.1989), cert. denied, 493 U.S. 1078, 110 S.Ct. 1131, 107 L.Ed.2d 1037 (1990), so held:  '[A] party who fails to object to the form of special interrogatories cannot complain for the first time on appeal.'  (quoting J.C. Motor Lines, Inc. v. Trailways Bus Sys., 689 F.2d 599, 603 (5th Cir.1982)). 16 Not only is there no plain-error exception for failure to object to the form of the questions in a special verdict, just such a situation as is before us now is contemplated by F.R.Civ.P. 49(a). That rule provides in pertinent part that 17 If ... the court omits any issue of fact raised by the pleadings or by the evidence, each party waives the right to a trial by jury of the issue so omitted unless before the jury retires the party demands its submission to the jury. As to any issue omitted without such demand the court may make a finding; or, if it fails to do so, it shall be deemed to have made a finding in accord with the judgment on the special verdict. 18 There is no doubt that the issue now argued on appeal was omitted without a demand that the court make a finding with respect to it. So AG Systems failed to make the demand as contemplated by the rule. When the district court entered its judgment on the special verdict against AG Systems and in favor of defendants, under Rule 49(a) that was a finding in favor of defendants authorized by the rule to be made by the court because the issue was omitted from those issues submitted to the jury. Hyde v. Land-of-Sky Regional Council, 572 F.2d 988, 992 (4th Cir.1978); see also 9A Wright & Miller, Federal Practice & Procedure, Civil Sec. 2507 (1995). Thus, we consider on appeal any omission of the word use from the questions asked to the jury in the special verdict form only as it may have been properly raised in any question as to the correctness of the failure of the district court to enter judgment for AG Systems as a matter of law. See infra Part IV. 19