Branson Ultrasonics Corp. v. Stratman

921 F. Supp. 909, 1996 WL 173022
CourtDistrict Court, D. Connecticut
DecidedFebruary 28, 1996
Docket3:96CV229 (RNC)
StatusPublished
Cited by7 cases

This text of 921 F. Supp. 909 (Branson Ultrasonics Corp. v. Stratman) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Branson Ultrasonics Corp. v. Stratman, 921 F. Supp. 909, 1996 WL 173022 (D. Conn. 1996).

Opinion

RULING AND ORDER ON PLAINTIFF’S MOTION FOR PRELIMINARY INJUNCTION

CHATIGNY, District Judge.

Plaintiff Branson Ultrasonics Corporation seeks a preliminary injunction against defendant Kenneth R. Stratman, Branson’s former Director, Electronic Design and Development, to prevent him from violating his Covenant Not To Compete and Confidentiality Agreement (“the Agreement”). Stratman recently resigned from Branson to take a position with Dukane Corporation, Branson’s principal competitor. The Agreement provides that Stratman may not work for one of Branson’s competitors for a period of one year following the termination of his employment with Branson. Branson wants an injunction preventing Stratman from continuing to work at Dukane until the one year period has expired.

Branson filed this action in Connecticut Superior Court and sought a temporary re *911 training order, which was denied on the papers. Stratman was ordered to show cause why a preliminary injunction should not be granted. Stratman then removed the case based on diversity of citizenship.

Branson filed its motion for a preliminary injunction along with a supporting memorandum and affidavits on February 20. Stratman filed papers in opposition on February 26. An evidentiary hearing was held on February 27.

After careful consideration of the evidence and the parties’ oral and written submissions, I believe that a preliminary injunction is necessary and appropriate to protect against Stratman’s use and disclosure of Branson’s trade secrets and other confidential information. In accordance with Fed.R.Civ.P. 52(a), this ruling contains findings of fact and conclusions of law.

I. Findings of Fact

1. Branson is a Delaware corporation with its principal place of business in Dan-bury, Connecticut.

2. Branson is in the business of designing, engineering, manufacturing and selling a line of products that use ultrasonics to join plasties and other materials in a wide variety of industrial applications. Ultrasonics is the use of high energy vibration to cause friction, which in turn produces heat to create a weld. Today, this process is controlled by sophisticated computer hardware and software.

3. Branson sells ultrasonic joining equipment to end-users. It also sells components to manufacturers of ultrasonic joining equipment. One of its customers is Amteeh, a major manufacturer of metal welding equipment. Branson sells components to Amteeh and also acts as a distributor for Amteeh. Branson has customers in the United States, Europe, and Asia and faces competition in all those areas.

4. Stratman is a citizen of the State of Illinois. He is an electrical engineer who has worked in ultrasonics since 1980. Stratman was employed by Branson from August 22, 1994 until January 12,1996 as Director, Electronic Design and Development. Prior to that time, he worked for Dukane for approximately 13 years.

5. Dukane is in the same business as Branson. Dukane is Branson’s chief competitor in the United States and also competes with Branson in Europe and Asia. Dukane seeks to replace Branson as the world’s largest manufacturer and supplier of ultrasonic plastics joining equipment. Like Branson, Dukane sells to end-users as well as to manufacturers of ultrasonics welding equipment. One of its customers is Ultex Corporation, a manufacturer of metal welding systems in Japan. Dukane sells components to Ultex and also acts as a distributor of Ultex’s product line.

6. On January 9, 1996, Stratman informed Branson that he was resigning from his employment with Branson and returning to Dukane.

7. Stratman went to work for Branson pursuant to a written offer of employment, which is in the record as Plaintiffs Exhibit 1. The offer letter informed Stratman that “[b]y virtue of your job responsibilities, you will have access to highly confidential information and trade secrets which could cause irreparable injury to the corporation if released to competitors or others in related businesses.” Stratman signed the offer letter on August 11,1994.

8. As a condition of its offer of employment, Branson required Stratman to sign a Covenant Not To Compete and Confidentiality Agreement (“the Agreement”), which is in the record as Plaintiffs Exhibit 2. Stratman read the Agreement before signing it on August 11,1994.

9. In paragraph II of the Agreement, Stratman agreed that during the period of his employment at Branson and for one year following termination of his employment (for any reason other than involuntary layoff), he would not enter the employ of any corporation engaged in, or desiring to enter, the business of designing, engineering, manufacturing, marketing or selling:

a. Plastics joining equipment;
b. Industrial ultrasonic and vapor degreasing cleaning equipment and related products;
*912 c. Commercial ultrasonic cleaning equipment;
d. Ultrasonic cell disruptor equipment; and
e. Ultrasonic machine tooling equipment.

10. Before starting with Branson, Stratman also read and signed Branson’s policy on confidential information, which is in the record as Plaintiff’s Exhibit 3.

11. In his capacity as Branson’s Director of Electronic Design and Development, Stratman was one of the leaders of a team responsible for developing a new product line of ultrasonics joining equipment known as the 1000 series. More specifically, he was the engineering leader responsible for developing new computerized controls for the 1000 series.

12. Branson has invested millions of dollars in developing the 1000 series and intends to introduce the new product line to the market later this year. Branson regards this project as its highest priority in positioning itself to compete with Dukane.

13. In the course of his employment at Branson, Stratman had access to and became familiar with confidential information concerning the 1000 series, including the core technology of the 1000 series and Branson’s plans for marketing the 1000 series.

14. In his new position at Dukane, Stratman reports to Frank Link, who is president of Dukane’s Ultrasonics Division. Link hired Stratman because of Stratman’s engineering ability, high level of performance during his previous employment with Dukane and familiarity with Dukane’s personnel, products and customers.

15. In hiring Stratman, Link knew that Stratman had signed the Agreement with Branson. Link believes that the Agreement reasonably prohibits Stratman from working for Dukane in the area of plastics joining equipment and has instructed Stratman that he is to have no direct contact with Dukane’s engineers, all of whom have responsibility for developing plastics joining equipment.

16. In his new position at Dukane, Stratman is responsible for developing a market for Dukane’s products in the area of metal welding. To that end, Stratman has already visited Ultex in Japan.

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921 F. Supp. 909, 1996 WL 173022, Counsel Stack Legal Research, https://law.counselstack.com/opinion/branson-ultrasonics-corp-v-stratman-ctd-1996.