Department of Public Utilities v. Freedom of Information Commission

739 A.2d 328, 55 Conn. App. 527, 1999 Conn. App. LEXIS 415
CourtConnecticut Appellate Court
DecidedNovember 2, 1999
DocketAC 18549
StatusPublished
Cited by9 cases

This text of 739 A.2d 328 (Department of Public Utilities v. Freedom of Information Commission) is published on Counsel Stack Legal Research, covering Connecticut Appellate Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Department of Public Utilities v. Freedom of Information Commission, 739 A.2d 328, 55 Conn. App. 527, 1999 Conn. App. LEXIS 415 (Colo. Ct. App. 1999).

Opinion

Opinion

HENNESSY, J.

The plaintiff department of public utilities of the city of Norwich (Norwich) appeals from the judgment of the trial court upholding an order of the defendant freedom of information commission (commission)1 requiring the plaintiff to disclose a study concerning the cost of serving a particular customer (study). Norwich specifically claims that the court improperly held that the study is not exempt from disclosure as a trade secret2 pursuant to General Statutes (Rev. to 1997) § 1-19 (b) (5), now § 1-210 (b) (5).3 We affirm the judgment of the trial court.

[529]*529The following facts are relevant to this appeal. Yankee Gas Services Company (Yankee) supplies natural gas to the Tribal Utility Authority of the Mashantucket Pequot Tribe (Tribal Utility). Norwich, a supplier of natural gas and a competitor of Yankee, had entered into an agreement with Tribal Utility to provide it with natural gas by building a pipeline. Yankee thereafter requested a copy of the agreement between Norwich and Tribal Utility, but was provided only a copy without the portion that contained the study. The study is a fifteen to twenty page document that reflects a specific formula to allocate costs to deliver a volume of product at a determined rate. Norwich claims that the study contains confidential and proprietary information, as well as feasibility estimates and evaluations describing the cost of providing the contracted gas service to the Mashantucket Pequot Reservation. Norwich further claims that such information is not readily available from other sources, and disclosure would give its competitors, including Yankee, an unfair business advantage in knowing the methodology used to adjust the cost of the contracted gas service.

The defendant attorney Joseph J. Cassidy, representing Yankee, complained to the commission, which ordered the disclosure of the study. Norwich appealed from that order to the Superior Court, which affirmed the order of the commission. Norwich now appeals to this court.

Norwich claims that the study is a trade secret and, as such, is exempt from disclosure pursuant to § 1-19 (b) (5). Norwich relies on the reasoning of our Supreme Court in Triangle Sheet Metal Works, Inc. v. Silver, 154 Conn. 116, 125-26, 222 A.2d 220 (1966), which held that a corporation’s costs, pricing and bidding procedures [530]*530constitute confidential “trade secrets.” Norwich also cites Town & Country House & Homes Service, Inc. v. Evans, 150 Conn. 314, 318-19, 189 A.2d 390 (1963), in which the court adopted the definition of trade secrets set forth in 4 Restatement, Torts § 757, comment (b), pp. 5-6 (1939), which provides in relevant part: “A trade secret may consist of any formula, pattern, device or compilation of information which is used in one’s business, and which gives him an opportunity to obtain an advantage over competitors who do not know or use it. . . . Some factors to be considered in determining whether given information is one’s trade secret are (1) the extent to which the information is known outside of his business; (2) the extent to which it is known by employees and others involved in his business; (3) the extent of measures taken by him to guard the secrecy of the information; (4) the value of the information to him and to his competitors; (5) the amount of effort or money expended by him in developing the information; [and] (6) the ease or difficulty with which the information could be properly acquired or duplicated by others.” Norwich agrees that the court properly relied on Town & Country House & Homes Service, Inc. v. Evans, supra, 314, in determining the meaning of “trade secret,” but with respect to the element of secrecy, claims that the court went beyond the ruling in Town & Country House & Homes Service, Inc., in apparently requiring a formal confidentiality agreement to demonstrate secrecy.

Applying the criteria set forth in Town & Country House & Homes Service, Inc., the trial court found that “(1) cost of service studies are routinely viewed as confidential by [the department of public utility control]; (2) the agreement is available to [Norwich’s] personnel, the Norwich utility commissioner, the tribal personnel and the [United States] Bureau of Indian Affairs; (3) no evidence of confidentiality agreements [531]*531or internal controls is in the record. There is testimony that it would not generally be available to the public; (4) the cost of service study was paid for by [Norwich] at a cost of thousands of dollars and is desired by a competitor, Yankee Gas; (5) the cost of the consultant was incurred by [Norwich]; (6) the information is available to various members of the Mashantucket tribe, [Norwich’s] employees, the Norwich Utility Commission and the Bureau of Indian Affairs.”

On the basis of these findings, the court concluded that “[t]he evidence of dissemination of the study and the absence of any confidentiality agreement or any steps taken to limit its dissemination defeat the claim of secrecy or confidentiality essential to the definition of ‘trade secret.’ [Norwich] failed to meet its burden of establishing the application of the exemption.”

General Statutes § l-21i (d), now § 1-206 (d), provides that “appeals from the decisions of the commission are taken pursuant to the Uniform Administrative Procedure Act (UAPA). General Statutes §§ 4-166 through 4-189. . . . This court is required to defer to the subordinate facts found by the commission, if there is substantial evidence to support those findings. Dufraine v. Commission on Human Rights & Opportunities, 236 Conn. 250, 259, 673 A.2d 101 (1996); Newtown v. Keeney, 234 Conn. 312, 319-20, 661 A.2d 589 (1995).” (Citations omitted; internal quotation marks omitted.) Furhman v. Freedom of Information Commission, 243 Conn. 427, 430-31, 703 A.2d 624 (1997). In the present case, the subordinate facts are not in dispute. Rather, it is the meaning of the statute that is disputed. “The determination of the meaning of a statute presents a question of law, which is within the province of the trial court and of this court.” Id., 431.

The court found, and Norwich agrees, that the definition of trade secrets adopted by our Supreme Court in [532]*532Town & Country House & Homes Service, Inc. v. Evans, supra, 150 Conn. 318-19, is applicable. Norwich’s claim turns, however, on the interpretation of the secrecy or confidentiality portion of the term “trade secrets.”

“[I]t is well established that the general rule under the Freedom of Information Act [FOIA] is disclosure, and any exception to that rule will be narrowly construed in light of the ‘general policy of openness expressed in the FOIA legislation.’ Board of Education v. Freedom of Information Commission, [208 Conn.

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739 A.2d 328, 55 Conn. App. 527, 1999 Conn. App. LEXIS 415, Counsel Stack Legal Research, https://law.counselstack.com/opinion/department-of-public-utilities-v-freedom-of-information-commission-connappct-1999.