Eastman Co. v. Reichenbach

20 N.Y.S. 110
New York Supreme Court·Decided May 15, 1892·Published·Cited by 4 cases

Opinion

Adams, J.

This case is invested with questions so interesting, and with consequences so important to all the parties interested, as to fully justify the large expenditure of time and labor which has characterized the trial and submission of the same; and, as introductory to" any discussion of the facts or law, the court desires to acknowledge its obligations to counsel for the very elaborate and careful briefs which have been submitted, and which in their arrangement of facts and reference to precedents have been helpful beyond measure. It would seem that an orderly and intelligent disposition of the case can best be accomplished by a review of the several questions of fact involved, in substantially the same connection as they are presented by the pleadings; and therefore the one which demands consideration at the outset relates to the matter of valuable secrets of trade, which the plaintiff claims to be the owner of. Did the plaintiff possess such secrets, processes, and appliances, and were the same discovered or invented by the defendants, or either of them, or imparted to them, while occupying confidential relations with the plaintiff? That this proposition must be met with an affirmative answer is practically admitted by the defendants, for the very specific alie[112] gations upon this branch of the case which are contained in the plaintiff’s complaint are put in issue but partially, if at all, by the somewhat evasive denial that “all of the inventions made by the defendants, or either of them, belong to or are the exclusive property of the plaintiff. ” But, aside from this concession, the very nature of the business in which the plaintiff is engaged suggests processes, appliances, substances, and methods which must, of necessity, depend for their successful use and operation upon the enforcement of the utmost secrecy; and the fact that this plaintiff has established and is now conducting this extensive and remunerative business is of itself evidence so strong as almost to require the court to take judicial notice that discoveries and inventions unknown to the public at large constitute the foundation upon which that business rests. It would be useless to indulge in further expenditure of time upon a proposition so self-evident, and it must be assumed, therefore, that the plaintiff is, and was at the time defendants were in its employ, the owner of inventions, discoveries, and secrets, which were its own special property, and to which' great value attached. That these inventions or discoveries were (some of them, at least) made by two of the defendants is, as has just been shown, also a conceded fact, and that these same defendants possessed knowledge as to all of them, which was regarded as confidential in its nature, is abundantly established by the evidence in the case. As illustrative of this proposition may be cited those portions of the testimony which show the care and pains which were taken by the defendants to conceal from a curious public, and even from the knowledge of their coemployes, the several processes employed to obtain certain results. Again, men employed in one department were not allowed to go into another department. Ingredients employed in compounding certain mixtures were guarded by lock and key, and the various formulae were only given to those whose business it was to use them. It would be absurd to claim that defendants could have been conscious of the precautions thus taken to hedge in the plaintiff’s business affairs without understanding very clearly the meaning of it all, and no conclusion, consistent with sound reason, can be indulged in, other than that which is contendedor by the plaintiff, viz., that it was the possessor of certain valuable trade secrets, which were confidentially known by or disclosed to the defendants Beichenbach and Passavant.

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Eastman Co. v. Reichenbach, 20 N.Y.S. 110 (N.Y. Super. Ct. 1892).

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