Pope v. Alberto-Culver Co.

694 N.E.2d 615, 296 Ill. App. 3d 512, 230 Ill. Dec. 646, 1998 Ill. App. LEXIS 267
CourtAppellate Court of Illinois
DecidedApril 27, 1998
Docket1-97-0202
StatusPublished
Cited by35 cases

This text of 694 N.E.2d 615 (Pope v. Alberto-Culver Co.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pope v. Alberto-Culver Co., 694 N.E.2d 615, 296 Ill. App. 3d 512, 230 Ill. Dec. 646, 1998 Ill. App. LEXIS 267 (Ill. Ct. App. 1998).

Opinion

JUSTICE O’HARA FROSSARD

delivered the opinion of the court:

On May 27, 1995, plaintiff H. Maie Pope filed a complaint against defendant Alberto-Culver Company for trade secret misappropriation in violation of the Illinois Trade Secrets Act (765 ILCS 1065/1 et seq. (West 1994)), breach of contract and unjust enrichment. Plaintiff alleges defendant misappropriated a proposal she submitted to the company which involved the dispensing of lye-based hair relaxer in a squeezable tube, using the tube to apply the product. She contends defendant misappropriated her proposal by introducing a similar product line after the company rejected her proposal. The trial court bifurcated the liability and damage issues for separate trials, and after discovery on the liability issues, defendant moved for summary judgment. The trial court granted defendant’s motion for summary judgment on December 11, 1996. It is from this order that plaintiff appeals.

I. FACTS

Plaintiff approached defendant in May of 1990 with a proposal in which a plastic tube is used to contain and apply lye-based hair relaxer. Defendant has developed and marketed product lines that include both lye-based and non-lye-based hair relaxers since the 1980s. Within the industry at large, non-lye-based hair relaxers are sold in tubes almost identical to those in plaintiff’s proposal, while lye-based hair relaxers are sold primarily in plastic jars or tubs, though at least one company has sold a lye-based hair relaxer in a plastic, squeezable bottle.

After conducting research in the public library, plaintiff constructed crude models and made drawings of her proposal. Her proposal included prototypes of the dispenser and instructions for its use. She and defendant executed a confidential and nondisclosure agreement in which defendant agreed not to disclose or misappropriate any trade secrets or confidential information contained in the proposal.

Defendant rejected plaintiffs proposal in February 1991. In April of 1993, defendant introduced a line of hair care products under the name “Motions,” which included a lye-based hair relaxer in a tube. In her complaint, plaintiff contends the idea for the “Motions” tube was taken directly from her proposal. Defendant denies that plaintiffs proposal led to the creation of the “Motions” tube and asserts the idea was independently originated by an employee who had experience with lye-based relaxers in tubes as early as the 1970s.

II. ANALYSIS

1. Standard of Review

The appellate review of a grant of summary judgment is de novo. USG Corp. v. Sterling Plumbing Group, Inc., 247 Ill. App. 3d 316, 318, 617 N.E.2d 69 (1993). Summary judgment is proper only when there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. 735 ILCS 5/2 — 1005(c) (West 1994). The function of the appellate court in reviewing the grant of summary judgment is not to decide disputed issues of fact but rather to determine whether a factual dispute exists. Kerr v. Illinois Central R.R. Co., 283 Ill. App. 3d 574, 583, 670 N.E.2d 759 (1996). The court must construe the evidence strictly against the movant and liberally in favor of the opponent. Quality Lighting, Inc. v. Benjamin, 227 Ill. App. 3d 880, 884, 592 N.E.2d 377 (1992).

2. The Illinois Trade Secrets Act

Plaintiff first asserts that defendant misappropriated her trade secret under the Illinois Trade Secrets Act (Act) (765 ILCS 1065/1 et seq. (West 1994)). Before addressing the issue of misappropriation under the Act, however, we must determine whether plaintiffs proposal is entitled to trade secret protection as a matter of law.

Under the Act, a trade secret is defined as follows:

“[[Information, including but not limited to, technical or nontechnical data, a formula, pattern^ compilation, program, device, method, technique, drawing, process, financial data, or list of actual or potential customers or suppliers, that:
(1) is sufficiently secret to derive economic value, actual or potential, from not being generally known to other persons who can obtain economic value from its disclosure or use; and
(2) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy or confidentiality.” 765 ILCS 1065/2 (West 1994).

Under the Act, whether the information sought to be protected qualifies as a trade secret focuses fundamentally on the secrecy of such information. Thermodyne Food Service Products, Inc. v. McDonald’s Corp., 940 F. Supp. 1300 (N.D. Ill. 1996). Under the first statutory requirement, the information at issue must be substantially secret to impart economic value to both its owner and its competitors because of its relative secrecy. Mangren Research & Development Corp. v. National Chemical Co., 87 F.3d 937, 942 (7th Cir. 1996), quoting George S. May International Co. v. International Profit Ass’n, 256 Ill. App. 3d 779, 628 N.E.2d 647 (1993). This requirement precludes trade secret protection for information generally known or understood within an industry even if not to the public at large. Mangren, 87 F.3d at 941; see also M. Jaeger, Trade Secrets Law § 3.04, at 3 — 34 (1988).

It is well established that a product or service that is within the realm of general skills and knowledge in the industry cannot be a trade secret. Web Communications Group, Inc. v. Gateway 2000, Inc., 889 F. Supp. 316, 319 (N.D. Ill. 1995), citing Service Centers of Chicago, Inc. v. Minogue, 180 Ill. App. 3d 447, 535 N.E.2d 1132 (1989).

The Web case involved a multipage, stepped advertising insert that plaintiff Web designed to be incorporated into a bound magazine. Though such inserts had been used in the printing industry before, Web’s was the first to be utilized in a bound magazine. Though Web discussed using the advertisements with defendant Gateway 2000, the final arrangements for the work were never made. Instead, Gateway hired another company to create similar advertising inserts which appeared in bound magazines. Web filed an action against Gateway for, among other things, misappropriation of a trade secret under the Illinois Trade Secrets Act.

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Bluebook (online)
694 N.E.2d 615, 296 Ill. App. 3d 512, 230 Ill. Dec. 646, 1998 Ill. App. LEXIS 267, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pope-v-alberto-culver-co-illappct-1998.