Unreasonable Delay in Prosecution May Warrant Dismissal of Trade Secrets Case

Fox v. Millman, No. A-5905-07T3 (App. Div., July 15, 2010) – In a trade secrets case, the Appellate Division recently held it was appropriate to submit the defense of laches to a jury, even though the statute of limitations had not yet expired. The employee’s former employer brought claims against her current employer for unlawfully plundering confidential and proprietary information and trade secrets. The court determined that the former employer was aware of its potential claims at least four years before it sued, but failed to put the current employer on notice, thereby restricting the current employer’s ability to reduce or eliminate its potential liability. Accordingly, the current employer was entitled to submit the defense of laches to the jury. The court reiterated that the defense is only available to a party who has acted in good faith.