Del Monte Fresh Produce Co. v. Dole Food Co., Inc.

148 F. Supp. 2d 1322, 59 U.S.P.Q. 2d (BNA) 1734, 2001 U.S. Dist. LEXIS 8117, 2001 WL 687515
District Court, S.D. Florida·Decided May 21, 2001·No. 00-1171-CIV-GOLD·Published·Cited by 11 cases

Opinion

ORDER GRANTING MOTION TO COMPEL

GOLD, District Judge.

THIS CAUSE is before the court upon the motion to compel (DE # 212) filed by Dr. Daniel W. Funk (“Dr.Funk”). Dr. Funk requests that Del Monte disclose the nature of its claimed “trade secrets” with reasonable particularity. In response, Del Monte argues that it has met its burden of specifying the nature of its trade secrets. *1323 On March 29, 2001, the court heard arguments of counsel on Dr. Funk’s motion to compel. For the reasons discussed herein, Dr. Funk’s motion is granted.

I. The Parties’ Arguments

Dr. Funk claims that, in the past, Del Monte has permitted its witnesses to disclose the purported trade secrets with “reasonable particularity” because the information at issue is shielded by a protective order. According to Dr. .Funk, Del Monte now has changed its position and is instructing its witnesses, particularly Hans Sauter, not to disclose the trade secrets. This, in turn, allegedly prevents Dr. Funk from defending against Del Monte’s claim, which is for violations of Florida’s Uniform Trade Secrets Act, Fla. Stat. § 688.003.

Del Monte’s principal argument in opposition to Dr. Funk’s motion is that it has identified the trade secrets at issue with sufficient particularity. It states that the only information Sauter has refused to disclose is: (1) the exact method of land preparation for cultivating MD-2 pineapple and (2) the names of the waxes that comprise the fruit coat formula.

II. The Applicable Law

The parties’ papers do not thoroughly discuss whether California or Florida law applies to this case. The court has conducted an independent inquiry into this issue, and, as discussed in the accompanying order on Del Monte’s motion for a preliminary injunction, has concluded that there is no true conflict between the states’ trade secret laws. As discussed below, the same is true for California’s and Florida’s positions regarding the production of trade secrets in trade secret misappropriation cases.

A. California Law

In his motion to compel, Dr. Funk relies on California trade secret law. According to § 2019(d) of California’s Civil Procedure Code, “In any action alleging the misappropriation of a trade secret under the Uniform Trade Secrets Act ... before commencing discovery relating to the trade secret, the party alleging the misappropriation shall identify the trade secret with reasonable particularity subject to any orders that may be appropriate.... ” In effect, California requires that, in a trade secret misappropriation case, discovery be postponed until a plaintiff identifies its trade secrets. See Computer Econ., Inc. v. Gartner Group, Inc., 50 F.Supp.2d 980, 988 (S.D.Cal.1999) (discussing California statute and listing its purposes); see also Imax Corp. v. Cinema Tech, Inc., 152 F.3d 1161, 1166-67 (9th Cir.1998) (requiring plaintiff to identify precise numerical dimensions of object allegedly constituting trade secret). Under California law, Del Monte clearly must produce the information at issue in this case.

B. Florida Law

No other state has codified a rule similar to California Civil Procedure Code § 2019(d). This does not mean, however, that Florida would not require Del Monte to identify with reasonable particularity the trade secrets it claims Dr. Funk has misappropriated. In fact, the opposite is true.

A party who resists production of trade secrets in Florida usually does so under the state’s statutory trade secret privilege, Fla. Stat. § 90.506. 1 See, e.g., Auto Owners *1324 Ins. Co. v. Totaltape, Inc., 135 F.R.D. 199, 203 (M.D.Fla.1990) (applying Florida statute); Solicit Health Care, Inc. v. Spunberg, 722 So.2d 944, 946 (Fla. 4th DCA 1998) (discussing statute). Under Florida law, when the trade secret privilege is asserted as a basis for resisting production, the court must determine whether the information constitutes a trade secret. If it does, the court must require the party seeking production to show reasonable necessity for the requested materials. The party resisting discovery has the burden to show “good cause” for protecting discovery by showing that the information sought is a trade secret and that disclosure may be harmful. See American Express Travel Related Svcs., Inc. v. Cruz, 761 So.2d 1206, 1209 (Fla. 4th DCA 2000) (discussing and applying test); Sheridan Healthcorp, Inc. v. Total Health Choice, Inc., 770 So.2d 221, 222 (Fla. 3d DCA 2000) (same). Although Del Monte does not specifically invoke the trade secret privilege, it relies on trade secret case law in its opposition to Dr. Funk’s motion. These cases suggest that an in camera proceeding is necessary before a court orders that a trade secret be revealed or described with reasonable particularity. 2

A closer look at the cases discussing Florida’s trade secret privilege reveals that these cases are not applicable to this situation because none involves a claim under Florida’s Uniform Trade Secrets Act. See American Express Travel Related Svcs., 761 So.2d at 1207 (recovery of unpaid account charges); Sheridan Healthcorp., 770 So.2d at 221 (hospital services rendered); Salick Health Care, 722 So.2d at 945 (breach of contract); Beck v. Dumas, 709 So.2d 601, 602 (Fla. 4th DCA 1998) (breach of contract). The common factor in all of the trade secret privilege cases is that the parties opposing production have asserted the privilege because they claim that trade secrets are not at issue in their cases. In the instant case, the opposite is true-the trade secrets are the ultimate issue to be decided by the court. By bringing a claim under the Uniform Trade Secrets Act, and thereby placing the trade secrets at issue, Del Monte essentially has waived its right to assert the trade secret privilege. See Haney v. Mizell Mem. Hosp., 744 F.2d 1467, 1476 (11th Cir.1984) (finding that plaintiff waived psychotherapist-patient privilege by claiming damages for mental anguish); In re Hillsborough Holdings Corp., 176 B.R. 223, 238-39 (M.D.Fla.1994) (stating that the law regarding waiver prevents a party from placing some privileged information into evidence for his own benefit and then arguing against disclosure). As a result, Florida’s (and California’s) trade secret privilege does not prevent disclosure of the information sought by Dr. Funk.

Although Florida has not enacted a statute like California’s that compels disclosure of trade secrets, the same result is achieved under Florida’s case law.

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Del Monte Fresh Produce Co. v. Dole Food Co., Inc., 148 F. Supp. 2d 1322, 59 U.S.P.Q. 2d (BNA) 1734, 2001 U.S. Dist. LEXIS 8117, 2001 WL 687515 (S.D. Fla. 2001).

148 F. Supp. 2d 1322 (Del Monte Fresh Produce Co. v. Dole Food Co., Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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