Trade Secret Claim Dismissed: Key Takeaways from Vertical Bridge REIT v. Everest Infrastructure Partners

July 10, 2024

TRADE SECRET CLAIM DISMISSED: KEY TAKEAWAYS FROM VERTICAL BRIDGE REIT V. EVEREST INFRASTRUCTURE PARTNERS

On May 23, 2024, the U.S. District Court for the Western District of Pennsylvania dismissed a trade secret misappropriation claim in Vertical Bridge REIT, LLC v. Everest Infrastructure Partners, Inc. This case highlights the stringent requirements courts impose on plaintiffs to demonstrate the existence and confidentiality of trade secrets, serving as a reminder for companies to implement strong measures to safeguard their proprietary information.

In this case, the plaintiff, Vertical Bridge (VB), which owns and operates telecommunications towers leased to cell phone companies and TV stations, alleged that Everest, a competitor, used confidential lease pricing information to outbid VB and increase rent payments, violating the Defend Trade Secrets Act (DTSA) and the Pennsylvania Uniform Trade Secrets Act (PUTSA).

The court found that VB did not sufficiently identify a trade secret, noting that the lease pricing might not be confidential if disclosed in prior contracts or to third parties without non-disclosure agreements. The court dismissed the complaint without prejudice and expressed doubt about VB’s claims, highlighting the necessity for plaintiffs to clearly define and safeguard their trade secrets in such cases.

To read more about the Court’s opinion in Vertical Bridge REIT, LLC v. Everest Infrastructure Partners, Inc, click here.

To read how CASTAYBERT PLLC can assist you with Trade Secret matters, click here.