State Court Can Hear Federal Defend Trade Secrets Act Claims

On August 4, 2023, Justice Chan of the New York County Commercial Division issued a decision in Restaurant Zone LLC v. Myers, 2023 NY Slip Op. 32751(U), holding that a state court can hear federal Defend Trade Secrets Act claims, explaining:

As a threshold issue, defendants posit that this court lacks subject matter jurisdiction over plaintiffs Defend Trade Secrets Act claim because this claim is a federal cause of action. Defendants are mistaken. In enacting the Defend Trade Secrets Act, 18 U.S.C. § 1836, Congress specifically chose not to limit the jurisdiction to hear claims under this Act solely to federal courts. Since Congress has not reserved jurisdiction over Defend Trade Secrets Act claims to exclusively federal district courts, this
court has concurrent jurisdiction over such claims.

(Internal citations omitted).

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