Erika Birg Published in Law360
“Jasco v. Dana – Back to Bankruptcy”

Erika Birg’s article, “Jasco v. Dana – Back to Bankruptcy,” was published in the August 21, 2009 issue of Law360. Erika’s article discusses a 56-page opinion from the U.S. Court of Appeals for the Second Circuit, which sent a long–pending trade secrets case, Jasco Tools Inc. v. Dana Corporation, back to the lower court for further proceeding because of the bankruptcy court’s failure to apply well-established summary judgment principles.

According to Erika’s article, Jasco Tools Inc. (Jasco) alleged that Dana Corporation (Dana) had conspired, among other things, with former Jasco employees to steal and use Jasco trade secrets. While the case was pending, Dana filed for bankruptcy. The bankruptcy court made several errors including not allowing Jasco to complete discovery, particularly deposition discovery, of Dana employees. The Second Circuit found that even without discovery of additional evidence, the record as it stands was sufficient to preclude the entry of summary judgment dismissing and expunging the Jasco claim and concluded that summary judgment principles were not properly applied by the bankruptcy court.

Erika concludes in her article that “limiting its discussion to Jasco’s claim of conspiracy to misappropriate trade secrets, the Second Circuit carefully and painstakingly analyzed applicable law as well as the direct and circumstantial evidence relating to Jasco’s claim, concluding that there were sufficient disputed issues of material fact on the conspiracy to misappropriate trade secrets claim that the case should have proceeded to a jury.”