One Sixty Over Ninety, LLC v. Board of Regents of the University System of Georgia

830 S.E.2d 503, 351 Ga. App. 133
CourtCourt of Appeals of Georgia
DecidedJune 27, 2019
DocketA19A0006; A19A0007
StatusPublished
Cited by6 cases

This text of 830 S.E.2d 503 (One Sixty Over Ninety, LLC v. Board of Regents of the University System of Georgia) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
One Sixty Over Ninety, LLC v. Board of Regents of the University System of Georgia, 830 S.E.2d 503, 351 Ga. App. 133 (Ga. Ct. App. 2019).

Opinion

Hodges, Judge.

*133 In these interrelated appeals arising from a procurement, we must decide whether a claim under the Georgia Trade Secrets Act of 1990 ( OCGA § 10-1-760 et seq. ) is available against a state entity under either that statute or the Georgia Tort Claims Act ( OCGA § 50-21-20 et seq. ) or whether such a claim is barred by sovereign immunity. If a claim is allowed, we must then decide if One Sixty Over Ninety, LLC's ("One Sixty") claim can survive a motion to dismiss filed by the Board of Regents of the University System of Georgia (the "Board"). See OCGA § 9-11-12 (b) (6).

One Sixty sued the Board for a violation of the Trade Secrets Act after an employee of the University of Georgia distributed certain of One Sixty's materials, submitted to UGA in response to a request for proposal, to a competitor. The Board moved to dismiss One Sixty's complaint, arguing that the complaint was barred by sovereign immunity and, alternatively, that One Sixty failed to state a claim for relief because the materials distributed by UGA were not "trade secrets" as defined by the Trade Secrets Act.

The Superior Court of Clarke County denied the Board's motion, finding that a litigant may bring an action for a violation of the Trade Secrets Act under the Tort Claims Act, through which the state waived its sovereign immunity, and that it could not find as a matter of law that One Sixty's materials were not trade secrets. The trial court issued a certificate of immediate review, and we granted the Board's application for interlocutory appeal. One Sixty then filed a cross-appeal in which it argued that the trial court erred in finding that there was no express or implied waiver of sovereign immunity in the Trade Secrets Act. We have consolidated these cases for decision on appeal and, for the following reasons, we affirm the trial court's judgment in both cases.

As a threshold matter, "[t]he trial court's ruling on [a] motion to dismiss on sovereign immunity grounds is reviewed de novo, while *134 factual findings are sustained if there is evidence supporting them." (Citation omitted.) Ambati v. Bd. of Regents of the Univ. System of Ga. , 313 Ga. App. 282 , n. 3, 721 S.E.2d 148 (2011) ; see also OCGA § 9-11-12 (b) (1). Similarly, "[w]e review de novo a trial court's determination that a pleading fails to state a claim upon which relief can be granted, construing the pleadings in the light most favorable to the plaintiff and with any doubts resolved in the plaintiff's favor." (Citation *506 and punctuation omitted.) Babalola v. HSBC Bank USA, N.A. , 324 Ga. App. 750 , 751 S.E.2d 545 (2013) ; see also OCGA § 9-11-12 (b) (6).

So viewed, One Sixty's verified complaint 1 alleged that it is a creative services agency that provides branding, strategy, design, public relations, and other services to a variety of clients, including institutions of higher education. Between June and December 2015, representatives of UGA and One Sixty corresponded concerning an upcoming request for proposal for a branding initiative. During the course of these communications, UGA's representative asked One Sixty for information to assist it in the preparation of the request for proposal and confirmed that One Sixty's responsive information would remain confidential. Finally, in December 2015, UGA asked One Sixty to present a webcast to UGA's Strategic Brand Initiative Committee (the "Committee"). UGA notified One Sixty that the webcast would be recorded so that Committee members who could not be physically present for the meeting would be able to view the presentation. In January 2016, One Sixty made a presentation to the Committee by webcast.

Thereafter, UGA sent One Sixty a request for proposal for the "Strategic Brand Initiative for a Comprehensive Capital Campaign" (the "RFP" or the "Capital Campaign"). One Sixty provided its written proposal in response to the RFP, marked "Confidential & Proprietary," in February 2016. According to One Sixty, its proposal included "confidential information concerning [One Sixty's] proprietary methods, approach, personnel structuring, and pricing." One Sixty also made a live on-campus presentation to the Committee, which was recorded for the benefit of members of the Committee who could not be present. In addition to the confidential information included in its proposal, One Sixty's live presentation contained "creative samples, which disclose [One Sixty's] proprietary method of deploying such sample." One Sixty alleged that it agreed to the recording of its presentation "based on the assurances by UGA that *135 the video would be used solely to show [One Sixty's] presentation to absent Committee members." There is no allegation in One Sixty's complaint that its initial webcast presentation or its recorded on-campus presentation were initially identified as confidential or as trade secrets.

Ultimately, UGA selected Ologie, LLC, a direct competitor with One Sixty in the higher education community, as the creative services agency for the Capital Campaign. In March 2016, One Sixty learned that UGA shared with Ologie One Sixty's initial webcast presentation, recorded on-campus presentation, "and a curated selection of [One Sixty's] creative work samples in a proprietary new business format" as "examples of work from other vendors[.]" (Punctuation omitted.) One Sixty alleged that Ologie used One Sixty's confidential information in other proposals for which the two companies competed, resulting in losses to One Sixty. 2 After it learned UGA shared the presentations, One Sixty "had multiple discussions with UGA regarding the extent to which the [confidential] [i]nformation was disclosed and the need to maintain its confidentiality as a trade secret." One Sixty also then "submitted an affidavit to UGA in accordance with OCGA § 50-18-72 attesting to the trade secret nature of the [condfidential] [i]nformation to prevent its possible disclosure in response to an open records request." 3

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Bluebook (online)
830 S.E.2d 503, 351 Ga. App. 133, Counsel Stack Legal Research, https://law.counselstack.com/opinion/one-sixty-over-ninety-llc-v-board-of-regents-of-the-university-system-of-gactapp-2019.