FLORIDA POWER AND LIGHT CO., APPELLANT, CROSS-APPELLEE,
v.
UTILITIES SERVICES OF AMERICA, INC., APPELLEE, CROSS-APPELLANT
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Florida Power and Light Co. appeals a $5.1 million judgment in favor of Utilities Services of America for civil theft of trade secrets, unauthorized disclosure, and breach of a confidentiality agreement. The appellate court affirms the trebled damages for trade secret theft but reverses an award for breach of an alleged oral contract, finding that the existence of a separate contract would negate the civil theft claim.
The court affirms that substantial competent evidence supports the jury's finding of civil theft of trade secrets and the $1.6 million compensatory damages award (trebled to $4.8 million under Chapter 812). The court reverses the $300,000 compensatory damages award for breach of the alleged oral contract, finding no substantial competent evidence of such a contract and holding that the existence of a contractual relationship would negate the civil theft claim.
[1] A jury verdict awarding compensatory damages for civil theft of trade secrets is supported by substantial competent evidence when the defendant appropriated the plaintiff…
[2] Statutory trebling of damages for civil theft of trade secrets is permissible when no contractual relationship exists between the parties.
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Join FLexlaw to unlock all legal intelligence“It is the non-existence of the contractual relationship, in fact, which allows the civil theft award to stand.”
Establishes the fundamental principle that statutory civil theft damages can only be awarded where no contractual relationship exists between the parties
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Join FLexlaw to unlock all legal intelligenceUSA claims FPL misappropriated USA's trade secrets related to bird discouragers and disclosed them to a competitor, Haverfield Helicopters. FPL awarde…
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PER CURIAM.
In this trade secrets case, defendant Florida Power and Light Co. (FPL) appeals a $5.1 million Final Judgment entered upon a jury verdict in favor of plaintiff Utilities Services of America, Inc. (USA). That jury verdict awarded USA $1.6 million in compensatory damages as a result of the jury finding that FPL committed a civil theft of USA’s trade secrets, made an unauthorized disclosure of USA’s trade secrets to a third party, and breached a written contract with USA entitled “Confidentiality Arrangements”. Pursuant to the provision of Chapter 812 of the Florida Statutes, the $1.6 million damage award was trebled to a total of $4.8 million. The jury also found that USA was entitled to recover an additional $300,000.00 in compensatory damages in connection with the jury’s finding that FPL breached an oral agreement to award the Andytown-Midway Bird Dis-courager project to USA. In addition, USA cross-appeals that portion of the Final Judgment in which the trial court eliminated the jury’s $1 million punitive damages award that also was rendered in connection with the jury’s finding that FPL had made an unauthorized disclosure of USA's trade secrets to a third party. We affirm in part and reverse in part.
We find that there is substantial competent evidence to support both the jury’s finding that FPL committed a civil theft of USA’s trade secret and the jury’s award of $1.6 million, which was statutorily trebled to $4.8 million, that the jury returned in connection with that finding. We also conclude that the trial court was eminently correct, for the reasons stated in its order, in striking the jury’s award of punitive damages.
We are not persuaded, however, by USA’s argument that there also existed a separate oral contract between USA and FPL to award the Andytown contract, and, furthermore, that this contract was breached by the granting of the Andytown contract to USA’s competitor, Haverfield Helicopters (Haverfield). We find that there was not substantial competent evidence to support the jury’s finding of such a contract, particularly in view of the fact that FPL’s award of the Andytown contract to Haverfield, together with the resulting damages claimed by USA in connection therewith, is all part of the proof of FPL’s appropriation of USA's trade secret, and is thus inextricably part of the events which gave rise to the tort action, the $1.6 million verdict thereupon, and the trebling of that verdict. See John Brown Automation, Inc. v. Nobles, 537 So. 2d 614 (Fla. 2d DCA 1988). It is the non-existence of the contractual relationship, in fact, which allows the civil theft award to stand. See Kal-man v. Morris-North American, Inc., 531 So. 2d 394 (Fla. 3d DCA 1988) (no statutory civil theft where contractual relationship exists between parties), rev. denied, 539 So. 2d 475 (Fla.1989); Futch v. Head, 511 So. 2d 314 (Fla. 1st DCA) (existence of contract negated trebling of damages under, Anti-Fencing Act), rev. denied, 518 So. 2d 1275 (Fla.1987); Rosen v. Marlin, 486 So. 2d 623 (Fla. 3d DCA) (trebling of damages warranted only where no contractual relationship exists between the parties), rev. denied, 494 So. 2d 1151 (Fla.1986). Accordingly, we reverse the $300,000.00 compensatory damage award rendered in favor of USA in connection with its “lost profits” claim.
Affirmed in part, reversed in part.
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New Lenox Indus., Inc. v. Fenton, 510 F. Supp. 2d 893 (M.D. Fla. 2007)…§ 553.84). 71 . Fla. Stat. § 812.081. 72 . Fla. Stat. § 772.11 (1988). 73 . Id. 74 . Fla. Stat. § 812.014(1)(a)-(b). 75 . See, e.g. Florida Power and Light Co. v. Utilities Services of America, Inc., 550 So.2d 13, 14 (Fla.Dist.Ct.App.1989)(affirming judgment entered on jury verdict for civil theft of trade secret); Information Technology & Engineering Corp., v. Reno, 813 So.2d 1053 (Fla.Dist.Ct.App.2002)(referring suit for civil theft of trade secrets…
Authorities Cited
- Murray Rosen v. Marlin, 486 So. 2d 623 (Fla. 3d DCA 1986)
- Futch v. Head, 511 So. 2d 314 (Fla. 1st DCA 1987)
- John Brown Automation, Inc. v. Nobles, 537 So. 2d 614 (Fla. 2d DCA 1988)
- Kalman v. Morris-North Am., Inc., 531 So. 2d 394 (Fla. 3d DCA 1988)