Federal Appellate Court Finds Motion To Enjoin Disclosure Of Confidential Information Should Not Be Denied Merely Because The Same Information Could Have Been Acquired Lawfully

The United States Court of Appeals for the Fifth Circuit, reversing a trial court’s refusal to enter an order enjoining disclosure of confidential information, recently held that the lower court erred when it (a) ruled that the moving party must satisfy all six trade secret balancing test factors, (b) rejected a party’s request for an evidentiary hearing with respect to a key factual dispute as to which the parties submitted conflicting affidavits, and (c) applied federal rather than state law in determining that the moving party’s potential injury from the alleged misappropriation could be adequately compensated with money.

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