Monovis, Inc. v. Aquino

905 F. Supp. 1205, 1994 U.S. Dist. LEXIS 20742, 1994 WL 860797
CourtDistrict Court, W.D. New York
DecidedMarch 21, 1994
Docket89-CV-0316E
StatusPublished
Cited by18 cases

This text of 905 F. Supp. 1205 (Monovis, Inc. v. Aquino) is published on Counsel Stack Legal Research, covering District Court, W.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Monovis, Inc. v. Aquino, 905 F. Supp. 1205, 1994 U.S. Dist. LEXIS 20742, 1994 WL 860797 (W.D.N.Y. 1994).

Opinion

FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER

ELFVIN, District Judge.

This is an action seeking equitable and non-monetary redress for a wrongful misappropriation of “trade secrets” allegedly belonging to plaintiff Zimmern and pertaining to the design and manufacture of single-screw compressors. 1 Zimmern had licensed his accumulated knowledge of single-screw compressors to companies in various parts of the world. Plaintiff Monovis, Inc. (“Monovis”) is Zimmem’s exclusive licensee in the United States and it, in turn, has entered into sublicense agreements with companies in this country. Defendant Aquino was an employee of such a sublicensee company and, through his employment, was exposed to and worked with Zimmern’s claimed trade secrets and, allegedly, is subject to a continuing duty not to disclose them. Aquino and another — Ewan Choroszylow — formed defendant Aurora Technology Corporation (“ATC”) in 1987 and have endeavored to engage in the business of designing, manu-factoring and selling single-screw compressors and their parts.

The Complaint for trade secret misappropriation and for breach of the duty of nondisclosure was answered by the defendants who asserted counterclaims sounding in unfair competition and antitrust and have moved for summary judgment under Rule 56 of the Federal Rules of Civil Procedure. Such motion was based in part on Aquino’s sworn affidavit that he had designed a single-screw compressor prior to the time that his then employer, the Worthington Group, a division of McGraw-Edison Company (“Wor-thington” or “McGraw-Edison”), had received any of Zimmern’s alleged proprietary trade secrets. 2 After the serving and filing of said motion Dresser-Rand Company (“Dresser-Rand”), a successor in title and in interest to Worthington, moved to intervene, arguing that any invention or innovation devised by Aquino during his employment by Worthington and Dresser-Rand is the property of Dresser-Rand by virtue of assignments he had executed. Over the defendants’ opposition, Dresser-Rand was granted leave to intervene.

This Court, after the case had been reassigned, issued an Order consolidating the hearing of a motion by the plaintiffs for a preliminary injunction with the trial on the merits of the prayer for a permanent injunction. 3 The trial was lengthy and oft-interrupted and was followed by proposed findings of fact and proposed conclusions of law and supporting briefs 4 and oral argument.

*1208 The United States Navy (“the Navy”) became interested in obtaining single-screw compressor capabilities for its underwater craft and began discussing the possibility of Worthington’s providing such technology and product. According to John Brown, formerly a Vice-President of Engineering at Wor-thington, that company had begun discussing such machinery with the Navy in late 1980 or early 1981. Brown (9/11/91) 11. 5 He testified that the Navy then was in the process of evaluating and comparing five or six different types of “positive displacement compressors” to determine which was best-suited for its future needs and that the decision was made at Worthington to have someone learn about “this technology” to facilitate further discussions with the Navy. Id. at 11-12. Brown stated that, “somewhere in that general time frame” (1980-1981), there were indications that the Navy would issue a request for proposals from companies interested in developing a single-screw compressor technology. He selected Aquino, then a Worthington employee, for such task and responsibility. 6 Ibid. Aquino performed some preliminary work and evaluations of such machines. Among such endeavors, he undertook and accomplished a technical evaluation of Zim-mern’s single-screw compressor.” 7 Aquino recommended that Worthington rely on Zim-mern’s single-screw expertise.

Worthington was awarded a single-screw compressor contract by the Navy in November of 1983 and Aquino was named the manager for the project, known as “the Star Project.” 8 Worthington eventually entered into a sublicense agreement with Monovis. Worthington and its employees (including Aquino) who were to be exposed to Zim-mern’s information agreed to hold it in confidence. Zimmern’s advice and knowledge were received by Worthington in due course and as work on the Star Project proceeded. Numerous meetings were held from 1983 through 1986 at which Zimmern and/or his representatives discussed all aspects of single-screw technology with Worthington’s employees; Aquino was often present at such meetings.

Worthington’s Buffalo plant closed in 1987 and work on the Star Project was transferred to a facility of the new owner Dresser-Rand in Painted Post, N.Y.

Choroszylow, a Worthington employee and Aquino’s associate-to-be in ATC, resigned from employment with Dresser-Rand August 24, 1987 (effective as of September 4th). Plaintiffs Exh. 302. Ten days earlier and while Aquino was still associated with Dresser-Rand, Aquino and Choroszylow however had travelled to Cooper Industries’s Gardner-Denver Industrial Machinery Division in Quincy, Ill. (“Cooper”) to discuss the possibility of their providing single-screw technology to Cooper. Following his resignation from Dresser-Rand, Choroszylow began setting up ATC which was formally incorporated that October. He commenced actively marketing the new company’s claimed expertise in single-screw compressor technology and capability. Such marketing efforts were directed toward Cooper and numerous other companies.

Aquino was offered a job at Dresser-Rand in Painted Post when the Buffalo plant closed, but he rejected the offer. Aquino *1209 (3/27/91) 565-567. Instead, Aquino entered into a “Consultant Agreement” 9 with Dresser-Rand in early June of 1987 for the purpose of inculcating its engineers with his own accumulated knowledge of the Star Project. See Plaintiffs’ Exhs. 28, 29. 10 Aquino was considered “the expert” on single-screw compressors in the company. Aquino (3/25/91) 156-157. The Consultant Agreement contains an assignment-of-inventions clause, pursuant to which Aquino agreed to assign to Dresser-Rand any inventions he conceived which related to his duties thereunder. 11

Aquino worked as a consultant for Dresser-Rand through October 1987. Aquino (3/29/91) 879.

Within a month of the announcement of the Worthington plant’s closing, Brown had secured a position as Director of Engineering at Cooper. 12

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Cite This Page — Counsel Stack

Bluebook (online)
905 F. Supp. 1205, 1994 U.S. Dist. LEXIS 20742, 1994 WL 860797, Counsel Stack Legal Research, https://law.counselstack.com/opinion/monovis-inc-v-aquino-nywd-1994.