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Hertz v. Luzenac Group

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Before KELLY, HOLLOWAY, and HOLMES, Circuit Judges.

This appeal arises from a series of claims and counterclaims between Luzenac America, Inc. (“Luzenac”) and two of its former employees, Sanford Lee Hertz and Lane Lighthart. In response to Mr. Hertz’s complaint, Luzenac alleged that Mr. Hertz and Mr. Lighthart misappropriated the company’s trade secrets related to the production and marketing of vinyl silane-coated talc. Luzenac also brought related claims for breach of contract and conspiracy. Mr. Hertz, in turn, filed claims against Luzenac for tortious interference with contract and with prospective business advantage; he also sought to amend his complaint to add a claim for abuse of process, but the district court denied this request. The district court found that the information that Mr. Hertz and Mr. Lighthart allegedly misappropriated was not a trade secret. It therefore granted Mr. Hertz summary judgment on that claim as well as the breach of contract and conspiracy claims. Additionally, the district court dismissed Mr. Hertz’s claims for tortious interference.

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