SCS Healthcare Marketing v. Allergan USA

September 6, 2012
State Court
New Jersey
Superior Court of New Jersey

The Superior Court of New Jersey, Chancery Division, considered the applicability of the New Jersey Trade Secrets Act (NJTSA). The act, recently passed by New Jersey, enacted the widely endorsed and adopted Uniform Trade Secrets Act (UTSA).

The issue in SCS Healthcare v. Allergan was one of first impression and considered whether the NJTSA “preempts common law causes of action which are based on the same set of operable facts.” The court held that the NJTSA does not preclude parties from seeking relief under both the NJTSA and the common law. The court cited the legislature’s intent regarding the provision and the final statutory language that stated the NJTSA supplemented, but did not displace, common law remedies. Accordingly, claimants may seek relief via the statute and traditional common law avenues. This decision makes New Jersey a particularly friendly forum for trade secret plaintiffs. Moreover, the courts interpretation affords misappropriated information that does not rise to the level of “trade secret” protection under common law.

SCS Healthcare Marketing, LLC
Allergan USA, Inc., Call, Inc. d/b/a MedForce
Uniform Trade Secrets Act