Opinion ID: 563800
Heading Depth: 2
Heading Rank: 2

Heading: The Merits of AFA's Trade Secrets Claims

Text: 44 Finally, even if Whitchurch were correct in his contention that the court dismissed AFA's trade secrets claims on the merits rather than for lack of jurisdiction, the dismissal could not stand. The question of whether or not a customer list is a trade secret is generally a question of fact. See, e.g., Chevron U.S.A., Inc. v. Roxen Service, Inc., 813 F.2d 26, 29-30 (2d Cir.1987); Defiance Button Machine Co. v. C & C Metal Products Corp., 759 F.2d 1053, 1063 (2d Cir.), cert. denied, 474 U.S. 844, 106 S.Ct. 131, 88 L.Ed.2d 108 (1985); see also 1 Milgrim Sec. 2.03, at 2-47 to 2-49 (1990) (existence of a trade secret is a question of fact for the determination of the trier of fact, secrecy being a basic element). The answer depends in part on the subsidiary fact questions of whether or not the owner took reasonable measures to protect [the] secrecy of the list, see, e.g., id. Sec. 2.04, at 2-55; Defiance Button Machine Co. v. C & C Metal Products Corp., 759 F.2d at 1063; and the ease or difficulty with which the information could properly be obtained from other sources, see, e.g., id.; Restatement of Torts Sec. 757, comment b (1939). The mere fact that an employee has access to information the employer regards as confidential is not inconsistent with treatment of the information as a trade secret. The employer must, however, take appropriate precautions to alert the employee to the need to maintain the confidentiality. 1 Milgrim Sec. 2.04, at 2-75 to 2-76. 45 In assessing the record to determine whether there is a genuine issue as to any material fact, the court is required to resolve all ambiguities and draw all factual inferences in favor of the party against whom summary judgment is sought. See, e.g., Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 255, 106 S.Ct. 2505, 2513-14, 91 L.Ed.2d 202 (1986). As set forth in Part I above, in opposition to Whitchurch's motion for summary judgment, AFA submitted several affidavits describing both the efforts it had made to develop a customer list that was not available from any other source, and efforts it had made to prevent dissemination of the names on that list except to persons actually participating in the tours and persons who needed to know those names in order to service the AFA tours. Drawing all permissible fact inferences in favor of AFA, the court could not have concluded that as a matter of law the list was not confidential or was unworthy of protection. The record as it stands on this question is rife with genuine issues of fact.