USA Power, LLC v. PacifiCorp

2016 UT 20, 372 P.3d 629, 2016 WL 2866139
CourtUtah Supreme Court
DecidedMay 16, 2016
DocketCase No. 20130442
StatusPublished
Cited by81 cases

This text of 2016 UT 20 (USA Power, LLC v. PacifiCorp) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
USA Power, LLC v. PacifiCorp, 2016 UT 20, 372 P.3d 629, 2016 WL 2866139 (Utah 2016).

Opinion

Chief Justice DURRANT,

opinion of the Court:

Introduction

T1 This case concerns a dispute about proprietary plans to develop a power plant. USA Power, LLC engaged in extensive work to research and develop a power plant project in Mona, Utah-its Spring Canyon "vision." It claims that this vision is a trade secret, that PacifiCorp misappropriated it, and that PacifiCorp also breached a confidentiality agreement between the parties. USA Power further claims that its water attorney, Jody L. Williams, and her law firm, Holme Roberts & Owen, LLC (HRO), (collectively, Ms. Williams) breached their fiduciary duties by working for PacifiCorp to acquire water rights on a competing power plant proposal.

12 USA Power's Spring Canyon vision took two years, thousands of work-hours, and close to $1 million to develop. To advance its proposed power plant project, it made several public disclosures to regulatory bodies. These disclosures included such information as the plant's proposed location, technological specifications, fuel type, water use, and generating capacity, Other information about the proposed plant, such as USA Power's economic and feasibility studies, was not publicly disclosed.

¶ 3 Meanwhile, PacifiGorp had identified a quickly approaching need for energy and was working to meet this demand. As part of its response to its upcoming power needs, Pacifi-Corp approached USA. Power and entered into negotiations to purchase USA Power's Spring Canyon assets. As part of these negotiations, USA Power required PacifiCorp to sign a Confidentiality and Non-Disclosure Agreement before it would divulge its entire Spring Canyon vision, ie., a compilation of both the already disclosed information and the portions of its vision that had not yet been publicly disclosed. PacifiCorp did so, and USA Power provided PacifiCorp details on its entire project, including the non-public backup studies that validated its public disclosures.

{4 Eventually PacifiCorp terminated the negotiations over the sale and decided to issue a Request for Proposal (RFP) to obtain bids for power sufficient to cover its needs. USA Power submitted its Spring Canyon project in response to PacifiGorp's RFP, Pa-cifiCorp submitted its own competing proposal, however, to build a power plant in Mona-its Currant Creek project. PacifiGorp's project was very similar to the Spring Canyon project proposed by USA Power, PacifiCorp also retained Ms. Williams, USA Power's former attorney, to help it obtain water rights for its Currant Creek project. Pacifi-Corp selected its own bid over USA Power's bid and, soon after, began construction on its project. -

T5 USA Power then brought suit against Ms. Williams asserting malpractice claims based on an alleged breach of her fiduciary duties of confidentiality and loyalty. USA Power later amended its complaint to include PacifiCorp as a defendant, asserting that Pa-cifiGorp had misappropriated USA Power's trade secrets-its "vision" for a plant in Mona, Utah and various components of this vision, which were themselves trade secrets. This case first came to the court in 2010, *639 after the trial court granted summary judgment to both Defendants. 1

T6 In USA Power I, we reversed the grant of summary judgment, holding that issues of material fact existed and summary judgment was inappropriate. 2 We also clarified that a compilation of publicly available information could, in some cireumstances, constitute a trade secret. After USA Power I, a five-week jury trial was held. Both parties moved for a directed verdict on all of USA Power's claims. The court denied these motions except as to USA Power's claim against Ms. Williams for punitive damages. The jury returned a special verdict against PacifiCorp and Ms. Williams, both of whom filed a rule 50 judgment notwithstanding the verdiet (JNOV) motion and a rule 59 motion for new trial, The trial court denied PacifiCorp's motions, except to reduce the unjust enrichment award against PacifiCorp, granted Ms. Williams's JNOV motion for lack of evidence related to causation, and determined that USA Power was entitled to attorney fees. The court also denied USA Power's request for exemplary damages and prejudgment interest. The parties appealed all adverse rulings." -

T7 We uphold the trial court on all claims. First, we uphold the trial court's denial of PacifiGorp's JNOV on the trade secret issue. As discussed below, under our deferential standard of review, there was a sufficient basis in the evidence from which the jury could reasonably conclude that certain components of USA Power's vision were not generally known or readily ascertainable. It is important to note that PacifiCorp appealed only the issue of whether a trade secret existed, conceding for purposes of appeal that if there was a trade secret, it was misappropriated. Second, as to USA Power's cross-appeal challenging various aspects of the damages award, we affirm the trial court's rulings, holding that the trial court applied the correct standards and did not abuse its discretion. Finally, regarding USA Power's direct appeal of the JNOV granted in favor of Ms. Williams, we affirm the trial court because there is no competent evidence demonstrating that Ms. Williams caused USA Power's damages or that USA Power would have benefitted if Ms. Williams had not breached her fiduciary duties. Accordingly, we affirm the trial court's ruling as to each issue presented on appeal.

Background

«8 This dispute focuses on USA Power's preliminary design of a power plant in Mona, Utah-its Spring Canyon vision-and PacifiCorp's alleged use of that plan to build its own power plant projects. 3 The preliminary design phase for a power plant involves site specific economic and technological feasibility studies. These studies are necessary for the financing and permitting of the plant. Preliminary design generally costs one to two percent of the plant's total cost and takes between eighteen and twenty-four months if the company starts from seratch. f

T9 USA Power claims that PacifiCorp misappropriated its trade secrets, which consisted of its Spring Canyon vision generally as well as the following:

. (1) technical information about the size, location, configuration, economics, engineering, and assets of [the Spring Canyon project]; (2) business strategies, goals, and plans including proformas describing cost and profitability; and (8) [USA Power's] first-to- market advantage-i.e., the abfllty to obtain financing and get to the market first and block potentzal competitors.

USA Power claims it disclosed these trade secrets to PacifiCorp mainly through three volumes of confidential information it provided PacifiCorp pursuant to the Confidentiality and Non-Disclosure Agreement, though it also disclosed some information related to its vision in emails and other communications between the parties, USA Power expended significant resources conducting preliminary *640 design work for Spring Canyon, including two years, thousands of work-hours, and close to $1 million,

10 USA Power publicly disclosed various pieces of information about its Spring Canyon proposal on three occasions.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

State v. Hunt
2025 UT 54 (Utah Supreme Court, 2025)
Fleming v. Dullanty
2025 UT App 128 (Court of Appeals of Utah, 2025)
Herzog v. Vail Resorts
2025 UT App 69 (Court of Appeals of Utah, 2025)
Rodriguez v. Diede
2025 UT App 68 (Court of Appeals of Utah, 2025)
Smart Tech Development v. Pink Water Harvesting
2025 UT App 18 (Court of Appeals of Utah, 2025)
Krajeski v. Krajeski
2025 UT App 19 (Court of Appeals of Utah, 2025)
Winn v. McKinlay
2025 UT App 16 (Court of Appeals of Utah, 2025)
Magleby v. Schnibbe
2024 UT 43 (Utah Supreme Court, 2024)
Pegasystems Inc. v. Appian Corporation
Court of Appeals of Virginia, 2024
Wakefield v. Gutzman
2024 UT App 76 (Court of Appeals of Utah, 2024)
Ole Mexican Foods v. J and W Distribution
2024 UT App 67 (Court of Appeals of Utah, 2024)
Invasix v. Hayes
D. Utah, 2023
Farm Bureau v. Weston
2023 UT App 136 (Court of Appeals of Utah, 2023)
In re Harding Trust
2023 UT App 81 (Court of Appeals of Utah, 2023)
Hanks v. Anderson
D. Utah, 2023
Magleby v. Schnibbe
2023 UT App 54 (Court of Appeals of Utah, 2023)
Short v. Short
D. Utah, 2023

Cite This Page — Counsel Stack

Bluebook (online)
2016 UT 20, 372 P.3d 629, 2016 WL 2866139, Counsel Stack Legal Research, https://law.counselstack.com/opinion/usa-power-llc-v-pacificorp-utah-2016.