California Appellate Court Affirms Sanctions Award Against Attorney and Her Clients Who Allegedly Violated The Protective Order in a Trade Secret Matter

The recent decision of California’s Third Appellate District in Wallis v. PHL Associates, Inc. underscores the importance of following the terms of a protective order in trade secret litigation and acting cautiously when handling materials that arguably may be protected under a protective order.

In Wallis, the trial court imposed sanctions of $43,678.42 against an attorney and her clients. The sanctions arose out of alleged conduct by the attorney and her clients in response to a declaration and accompanying documents that opposing counsel attempted to filed under seal pursuant to a protective order, but which inadvertently ended up in the court’s public file.

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