From Casetext: Smarter Legal Research

Howard Berger Co. v. Ye

Appellate Division of the Supreme Court of New York, Second Department
May 15, 2000
272 A.D.2d 445 (N.Y. App. Div. 2000)

Opinion

Argued April 7, 2000.

May 15, 2000.

In an action, inter alia, to permanently enjoin the defendants from using trade secrets and confidential information, the plaintiff appeals from an order of the Supreme Court, Kings County (Vaughan, J.), dated July 8, 1999, which granted the separate motions of the defendants Leoapold Ye and Milton Cohen and the defendant Reiss Wholesale Hardware Co., for summary judgment dismissing the complaint insofar as asserted against them.

Robert M. Simels, P.C., New York, N.Y., for appellant.

Lynch Rowin Novack Burnbaum Crystal, P.C., New York, N Y (Howard C. Crystal and Mark Silberblatt of counsel), for respondents Leoapold Ye and Milton Cohen.

Sessler Sessler, LLP, New York, N.Y. (Jennifer R. Sessler of counsel), for respondent Reiss Wholesale Hardware Co., Inc.

WILLIAM D. FRIEDMANN, J.P., GABRIEL M. KRAUSMAN, DANIEL F. LUCIANO, ROBERT W. SCHMIDT, JJ.


DECISION ORDER

ORDERED that the order is reversed, on the law, with one bill of costs payable by the respondents appearing separately and filing separate briefs, the motions are denied, and the complaint is reinstated.

The plaintiff commenced this action, inter alia, to permanently enjoin the defendants from using its trade secrets. The Supreme Court granted the defendants' separate motions for summary judgment dismissing the complaint. We reverse.

Although there is no generally accepted definition of a trade secret, one which has been cited with approval by the Court of Appeals states that a trade secret is "`any formula, pattern, device or compilation of information which is used in one's business, and which gives [one] an opportunity to obtain an advantage over competitors who do not know or use it'" (Ashland Mgt., Inc. v. Janien, 82 N.Y.2d 395, 407, quoting Restatement of Torts § 757, comment b). In the instant case, there are triable issues of fact as to whether the plaintiff's suppliers in China were "not known in the trade or [were] discoverable only by extraordinary efforts", and whether the plaintiff's relationship with these suppliers was "secured by years of effort and advertising effected by the expenditure of substantial time and money", such that the lists at issue constitute a trade secret (Leo Silfen, Inc. v. Cream, 29 N.Y.2d 387, 392-393; Laro Maintenance Corp. v. Culkin, ___ A.D.2d ___ [2d Dept., Dec. 27, 1999]).

Additionally, a triable issue of fact exists as to whether Ye breached a duty of good faith and fair dealing while employed by the plaintiff (see, Lamdin v. Broadway Surface Adv. Corp., 272 N.Y. 133, 138; Maritime Fish Prods., Inc. v. World-Wide Fish Prods., 100 A.D.2d 81, 88).

FRIEDMANN, J.P., KRAUSMAN, LUCIANO and SCHMIDT, JJ., concur.


Summaries of

Howard Berger Co. v. Ye

Appellate Division of the Supreme Court of New York, Second Department
May 15, 2000
272 A.D.2d 445 (N.Y. App. Div. 2000)
Case details for

Howard Berger Co. v. Ye

Case Details

Full title:HOWARD BERGER COMPANY, INC., appellant, v. LEOAPOLD YE, etc., et al.…

Court:Appellate Division of the Supreme Court of New York, Second Department

Date published: May 15, 2000

Citations

272 A.D.2d 445 (N.Y. App. Div. 2000)
708 N.Y.S.2d 310

Citing Cases

Medtech Products Inc. v. Ranir, LLC

Lehman v. Dow Jones Co., 783 F.2d 285, 298 (2d Cir. 1986). Although certain aspects of a product that would…

Long Is. Women's Health Care v. Haselkorn-Lomasky

Defendants' contentions to the contrary, as well as their claims that they did not, in fact, utilize Health…