Buffets, Inc. v. Klinke - 73 F.3d 965 (9th Cir. 1996)

Rule:

In order for a private individual to initiate an action under the Washington Consumer Protection Act, Wash. Rev. Code § 19.86.020, the conduct complained of must: (1) be unfair or deceptive; (2) be within the sphere of trade or commerce, and (3) impact the public interest.

Facts:

Plaintiff Buffets Inc., doing business as Old Country Buffets ("OCB"), brought the present action against Defendant Paul Klinke, et al., ("The Klinkes"), for misappropriation of trade secrets and violation of Washington's Consumer Protection Act. OCB alleged that the Klinkes misappropriated its recipes and its job training manuals, both of which it claimed were trade secrets, in order to open a buffet restaurant. The district court granted summary judgment for the Klinkes on the Consumer Protection Act claim and following a bench trial, entered judgment in favor of the Klinkes on the remaining claims. Plaintiff challenged the decision. 

Issue:

By allegedly misappropriating plaintiff’s recipes and job training manuals, did the defendant misappropriate “trade secrets” in violation of Washington's Consumer Protection Act? 

Answer:

No.

Conclusion:

The court affirmed judgment for defendants on plaintiff's claims for misappropriation of trade secrets under Wash. Rev. Code § 19.108.010(4), and violation of the Washington Consumer Protection Act (WCPA), Wash. Rev. Code § 19.86.020, in an action involving plaintiff's restaurant recipes and job manuals. The court held that the district court did not err in concluding that plaintiff's recipes were not entitled to trade secret protection because they were readily ascertainable, lacked the requisite novelty, and had no independent economic value. In addition, plaintiff's restaurant job manuals were not trade secrets because they were not the subject of reasonable efforts to maintain their secrecy and had little economic value, notwithstanding the fact that defendants obtained them illegally. The court also affirmed judgment on plaintiff's claim under the WCPA because defendants' conduct did not impact the public interest, a prerequisite for maintaining a private cause of action under the WCPA.