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Current Developments in the Commercial Divisions of the
New York State Courts
Posted: June 30, 2017

Court of Appeals Accepts Certified Questions Regarding Calculation of Damages and Prejudgment Interest in Trade Secret Cases

On June 27, 2017, the Court of Appeals accepted two certified questions from the Second Circuit in E.J. Brooks Co. v. Cambridge Sec. Seals, 2017 NY Slip Op 78277:

1. “[W]hether, under New York law, a plaintiff asserting claims of misappropriation of a trade secret, unfair competition, and unjust enrichment can recover damages that are measured by the costs the defendant avoided due to its unlawful activity”; and

2. “if the answer to the first questions is, ‘yes,’ whether prejudgment interest under CPLR § 5001(a) is mandatory where a plaintiff recovers damages as measured by the defendant’s avoided costs.”

The Second Circuit’s decision is available here.

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