Delaware Supreme Court Affirms De Minimis Damages Award in Trade Secret Misappropriation Dispute

Brown Rudnick represented the founders, directors and officers of Kamine Development Corporation (KDC) in proceedings culminating in the Delaware Supreme Court’s affirmation of a de minimis damages award in a trade secret misappropriation dispute. The dispute began when California Safe Soil (CSS) sued licensee KDC and the individual defendants alleging trade secret misappropriation, tortious interference, civil conspiracy, and unjust enrichment. The litigation forced KDC into bankruptcy and, while KDC was in liquidation, Brown Rudnick was retained in late 2023 to assume the defense of the individual defendants approximately 2.5 months before trial. Delaware Vice Chancellor Morgan Zurn found in favor of CSS on trade secret misappropriation but rejected all of CSS’s other claims and declined CSS’s requests for trebling of damages, exemplary damages, and attorneys’ fees, concluding the individuals’ conduct did not warrant such relief. After criticizing CSS’s damages expert and theories, the Court of Chancery awarded CSS $1.6 million, a figure the court described as substantially lower than the amount CSS sought—more than $600 million. CSS appealed the damages award to the Supreme Court of Delaware. Michael Winograd of Brown Rudnick argued the appeal for the appellees, and on October 2, 2025, the Supreme Court summarily affirmed the Court of Chancery’s ruling just two weeks after argument. Brown Rudnick represented the founders, directors and officers of Kamine Development Corporation (KDC) with a team composed by: partner Michael Winograd; partner Merri C. Moken; counsel Josh Whitehill; associate Katherine C. Dearing; and associate W. Lydell Benson Jr.

Delaware Supreme Court Affirms De Minimis Damages Award in Trade Secret Misappropriation Dispute

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