Ninth Circuit Reverses Dismissal of Trade Secrets Case Where Statute of Limitations May Have Been Tolled

The Ninth Circuit has reversed the dismissal of a misappropriation of trade secrets case, finding that it would be premature to resolve the issue of whether a plaintiff's claim is barred by the statute of limitations because a factual dispute existed as to whether the plaintiff's competitor concealed its misappropriation.

The court found that evidence from judicially noticeable court records existed that Plaintiff's competitor may have hidden any misappropriation by denying certain allegations at the relevant time. If that were the case, the Plaintiff would have been entitled to rely on the misrepresentations, which may have obscured the cause of action. Thus, the court concluded that it was premature to rule on the issue at the motion to dismiss stage because the plaintiff “may be able to prove a set of facts under which this action would be timely.”

The case is RA Medical Systems, Inc. v. Photomedix, Inc., Case No. No. 08-56477 (9th Cir. 2010).