Glue-Fold, Inc. v. Slautterback Corp.
Opinion
Opinion
Poche, J.
The only issues presented on this appeal from a summary judgment concern whether three different statutes of limitation have ran on what are essentially three causes of action for the same wrong—misappropriation of a trade secret. The primary issue—and one of first impression for a California court—concerns the construction of the limitation period provided by the Uniform Trade Secrets Act (Uniform Act) which California has adopted (Civ. Code, §§ 3426-3426.11). We conclude that the actual discovery of an act of misappropriating a trade secret commences the limitation period of three years, which is not tolled by subsequent inactivity by the misappropriator. We further conclude that the limitation period is also not tolled if such inactivity is followed by what the Uniform Act calls a “continuing misappropriation.”
With respect to the causes of action for breach of contract and violation of the Unfair Trade Practices Act (Bus. & Prof. Code, § 17000 et seq.), we conclude that the party opposing summary judgment failed to produce sufficient evidence to satisfy the “discovery” rale and thereby toll the running of the other statutes of limitation.