Appian Corporation v. Pegasystems

Holding

In an appeal from a judgment of the Court of Appeals reversing a jury verdict awarding over \$2 billion in damages in favor of a software company against a competitor based on its claims for misappropriation of trade secrets under the Virginia Uniform Trade Secrets Act (“VUTSA”), Code § 59.1-336 et seq., the evidence presented at trial was sufficient to support the plaintiff’s claim that the competitor misappropriated its trade secrets, and thus the Court of Appeals correctly concluded that the circuit court did not err by denying the competitor’s motions to strike and set aside the verdict. However, the Court of Appeals correctly concluded that the circuit court erred by instructing the jury that the competitor bore any burden of proof regarding the plaintiff’s damages claim and that the number of people with access to a purported trade secret is not relevant. The Court of Appeals also correctly determined that the circuit court abused its discretion in how it enforced its interpretation of the defendant’s response to a particular interrogatory because certain information the defendant sought to introduce did not contradict that response and the circuit court’s resolution effectively denied the defendant’s ability to put on its damages defense; and erred in precluding the defendant from attempting to authenticate and possibly introduce as evidence relevant versions of its software at trial. The judgment of the Court of Appeals is affirmed, and the matter is remanded for further proceedings consistent with this opinion.