Package MacHinery Co. v. HAYSSEN MANUFACTURING CO.

164 F. Supp. 904, 1 Fed. R. Serv. 2d 251, 118 U.S.P.Q. (BNA) 505, 1958 U.S. Dist. LEXIS 3910
CourtDistrict Court, E.D. Wisconsin
DecidedAugust 25, 1958
Docket55-C-15
StatusPublished
Cited by8 cases

This text of 164 F. Supp. 904 (Package MacHinery Co. v. HAYSSEN MANUFACTURING CO.) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Package MacHinery Co. v. HAYSSEN MANUFACTURING CO., 164 F. Supp. 904, 1 Fed. R. Serv. 2d 251, 118 U.S.P.Q. (BNA) 505, 1958 U.S. Dist. LEXIS 3910 (E.D. Wis. 1958).

Opinion

GRUBB, District Judge.

This is an action, commenced January 20, 1955, grounded upon alleged unfair competition.

In April 1954, plaintiff purchased from its predecessor, Transparent-Wrap Machine Corporation, hereinafter referred to as Transwrap, its assets and business of manufacturing automatic packaging machines which operate to form individual, sealed packages, each filled with a measured quantity of a product.

About the time of the sale of Trans-wrap to plaintiff, Henry Knoechel, Alfred Gausman, Ludwig Feurstein and John Nosal gave notice of their termination of employment with Transwrap and entered into the employment of the Hays-sen Manufacturing Company, hereinafter referred to as Hayssen Co.

Plaintiff asserts defendants Hayssen Co. and William Hayssen wrongfully induced Henry Knoechel, Alfred Gausman, Ludwig Feurstein and John Nosal to terminate their employment with plaintiff and to disclose to defendant Hayssen Co. Transwrap’s trade secrets, and that defendants obtained and utilized those secrets.

Plaintiff demanded $150,000 damages, and that defendants Hayssen Co., William Hayssen, Henry Knoechel and Alfred Gausman be enjoined from utilizing the trade secrets and confidential information, and that the Hayssen Co. be enjoined from ' using the ' services of Knoechel and Gausman further.

Hayssen Co., Hayssen, Knoechel and Gausman raise the following defenses, among others: ,,

That Knoechel, Gausman, Feurstein and Nosal were not induced to leave plaintiff by the Hayssen Co., but that when Transwrap was sold to plaintiff, they found they could not obtain desirable employment conditions with plaintiff, and thus they sought employment elsewhere; that the skills Hayssen Co. received from these men were not trade secrets, but were matters of mechanical skill; that any such knowledge retained by these men had also been publicly circulated, had been disclosed in previously expired patents and in the machines of plaintiff and other manufacturers on the market; that Alfred Gausman’s skill in the area was acquired before he was employed by Transwrap.

September 6, 1955, defendants moved for a more definite statement asking, among other things, for a more specific statement of what the trade secrets were that they were allegedly utilizing.

February 24, 1956, plaintiff filed a motion for a temporary injunction to restrain defendants from utilizing plaintiff’s trade secrets. In support of its motion, plaintiff filed an affidavit of Walter Zwoyer, which was somewhat more specific in naming trade secrets, but in the main was very general. It was conceded at the time of the hearing on the motion for a temporary injunction that if granted, this injunction would throw a large number of men out of employment, as well as disrupt and close down a very large part of the business of Hayssen Co.

In a hearing on May 28, 1956, the court denied defendants’ motion for a more definite statement, but indicated that the alleged trade secrets were not sufficiently specific; that before the case would be tried, the alleged trade secrets were to he pin-pointed at the pre-trial conference. (Tr. pp. 161-163)

*906 The court having considered plaintiff’s motion for a temporary injunction on the same date, and having denied the same, in a letter dated June 20, 1956, plaintiff’s counsel requested that this ease be given priority for an early trial date.

In spite of the fact that immediately before plaintiff’s counsel made his request for an early trial date, the court had indicated that plaintiff would have to make its allegations of trade secrets more specific at the pre-trial conference, nine months later, at the time of the pre-trial conference, plaintiff was not prepared to state what the alleged trade secrets were.

Plaintiff, both before and after the pre-trial conference, and prior to the various motions requiring plaintiff to specify the trade secrets it claimed were pirated, held extensive discovery proceedings. In addition to regular depositions, it examined drawings, blueprints, models and equipment at defendant Hayssen Co.’s plant in detail.

March 6, 1957 the court entered a pre-trial order requiring the plaintiff to file a “bill of particulars” on or before April 15, 1957, specifying the trade secrets plaintiff claimed were pirated by Hayssen Co. or by any of the other defendants or former employees of Trans-wrap.

April 15, 1957 plaintiff filed a “bill of particulars” purporting to set forth such trade secrets as it claimed were involved.

July 26, 1957, at a hearing on defendants’ motion to require compliance with the court’s pre-trial order, and more particularly to obtain more specificity from plaintiff in its claims of alleged trade secrets wrongfully pirated, the court considered in detail each paragraph of plaintiff’s “bill of particulars”. At this hearing, seventeen months after plaintiff asked the court to enjoin the defendants from utilizing its trade secrets, and thirteen months after plaintiff asked for an early trial, the court found 22 of plaintiff’s 24 statements of claimed trade secrets too general for the court or defendants’ counsel to be able to determine what the issues of fact would be; what alleged trade secrets plaintiff claimed were pirated.

The discussion of paragraphs F and G of plaintiff’s “bill of particulars” at the July 1957 hearing, demonstrates the further need for specificity, even at that late date, two and one-half years after the suit was commenced.

Paragraph F of plaintiff’s “bill of particulars” claimed: “The types of feeds and modifications of the same used in packaging the various types of products for such Transwrap customers.” At the hearing counsel and the court discussed this claim as follows:

“Mr. Morsell: My suggestion on that — if I may interrupt — is that much, for instance, is very general, relating to types of feeds, and modifications, used in packaging. Transwrap customers might have packaged a thousand different products, and by admissions in this case there are innumerable types of feeds and modifications. All we are asking for is that they specify specifically the feeds and modifications they are complaining about.
“The Court: Why shouldn’t that be done?
“Mr. Churchill: If your honor please, the feeds took quite a few forms. There were auger feeds, there were scale feeds, there were volumetric feeds, and there are modifications of those feeds for handling different types of films and for handling different types of products, so that one of the fundamental points in this whole case which the plaintiff is going to make as proof of theft of trade secrets is that by hiring these men, and only by virtue of hiring these men, the defendant, Hayssen Manufacturing Company, was able to know how this basic machine — Transwrap machine — can be modified in a hundred different ways by utilizing sometimes an auger *907 feed, other times a scale feed, sometimes using cellophane, other times using pliofilm, sometimes using electronic sealing.
“The Court: How many types of feeds are there?
“Mr. Churchill: There are four basic feeds.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
164 F. Supp. 904, 1 Fed. R. Serv. 2d 251, 118 U.S.P.Q. (BNA) 505, 1958 U.S. Dist. LEXIS 3910, Counsel Stack Legal Research, https://law.counselstack.com/opinion/package-machinery-co-v-hayssen-manufacturing-co-wied-1958.