000453 Tyson-ConAgra Trial Ruled

Fayetteville, AR - A judge said that Tyson Foods' dispute with ConAgra over Tyson's formula for chicken feed should be heard by a judge or jury.

ConAgra, based in Omaha, Neb., maintains that the formula is not a trade secret because its components could be determined by chemical engineers and had asked a Washington County judge to dismiss the case.

Springdale-based Tyson Foods said that is not a valid argument, because Tyson uses its feed formula in its operations only - supplying it and poultry to its own growers - and does not market it.

Chancellor John Lineberger refused to grant ConAgra summary judgment and said a trial should be held. Still pending is whether a judge or jury will hear the case. Lineberger asked lawyers for both companies to suggest how they want to proceed.

Tyson, the nation's largest poultry producer, sued ConAgra last August, saying the food giant had exploited proprietary information by hiring four Tyson executives.

In January, Lineberger barred ConAgra from using three of the executives in poultry positions for one year. The remaining portion of the case involves how ConAgra came into possession of Tyson's feed formula.

The executives were dropped from the lawsuit, remaining involved only as ConAgra employees.

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