Victor Chemical Works v. Iliff

132 N.E. 806, 299 Ill. 532
CourtIllinois Supreme Court
DecidedOctober 22, 1921
DocketNo. 13606
StatusPublished
Cited by44 cases

This text of 132 N.E. 806 (Victor Chemical Works v. Iliff) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Victor Chemical Works v. Iliff, 132 N.E. 806, 299 Ill. 532 (Ill. 1921).

Opinion

Mr. Justice Duncan

delivered the opinion of the court:

The defendant in error, the Victor Chemical Works, filed in the superior court of Cook county its bill praying the court to enjoin the plaintiffs in error, Ellsworth Iliff, C. M. Bruff, John Flaig and the Iliff-Bruff Chemical Company, from in any manner, directly or indirectly, disclosing to any person or corporation, or using for their own benefit, any knowledge or information relating to the plant, machinery, appliances, methods, processes, formulae or business of the complainant pertaining to the manufacture and sale of phosphates, and from engaging in or becoming interested, directly or indirectly, as individuals, partners, stockholders, shareholders, directors, officers, clerks, principals, agents, employees, trustees, lenders of money, bondholders, or in any other relation or capacity whatsoever, in or about the business, other than that of complainant, of buying, manufacturing or selling phosphates within the United States or Canada. It was alleged in the bill that Iliff, while in the employ of the complainant and under contract with it of January 26, 1903, not to disclose anything in regard to the plant or processes of the complainant, had joined with C. M. Bruff and John Flaig in organizing the Iliff-Bruff Chemical Company and establishing at Hoopeston, Illinois, a competitive business. The contract is set out in the bill in hcec verbaand recites that complainant desires to employ Iliff and that he desires to take employment as foreman with complainant, and the covenants therein are in these words:

“First—The party of the first part hereby so employs the party of the second part, and agrees to pay him seventy-five (75) dollars per month on the last day of each calendar month, such employment to continue subject to termination by either party upon reasonable notice.
“Second—The party of the second part agrees at all times to devote his whole time and attention to the business of the party of the first part; to discharge faithfully the duties of said employment; to do his best to perfect and improve on the processes, machinery, tools and appliances used in the business; to fully disclose to and inform, the proper representative, and him only, of the party of the first part of all improvements or discoveries made by him, or which he thinks by further investigation or experiment might be made, relating to or which might be useful in connection with the business of the party of the first .part, and on request to sign any and all papers which the party of the first part may by counsel be advised are necessary or proper to assure and secure to the party of the first part the full and exclusive right to such improvements, discoveries or inventions, and also not at any time, either during or subsequent to such employment, directly or indirectly, to give any person any information in regard to the whole or any part of the plant or processes of the party of the first part, and not to aid or do anything which might injure,- by competition or otherwise, the party of the first part, its successors or assigns, in its said business, but, on the contrary, at all times to do all he can to prevent other persons from obtaining information of the whole or any part of the said plant or processes.”

Complainant also alleged, in substance, that during the time Iliff was employed by it, it discovered at very great expense, and became and is the owner' of, original and secret formulse, methods, processes and appliances only known and used by it and certain of its employees in the manufacture of phosphates; that during Iliff’s employment, and while relying on his agreement to guard and protect the interests and property of complainant, he was allowed by it free access to the whole plant, the records of the research work and experiments, and was given information and knowledge of the new and secret discoveries, re-actions, methods, processes and appliances so that he might use the same as employee and for the benefit of complainant; that by reason of such knowledge he became skilled in the manufacture of phosphates and the other products of complainant; that all of such information was imparted and‘ confided to Iliff on the faith and reliance aforesaid and was and is secret and confidential and was at all times so understood by him,.and that irreparable injury will be suffered by complainant if he be permitted to disclose or use such knowledge as a competitor or for a competitor of complainant. The answer denied the existence of any such secret processes owned, held or used by complainant, and there was a hearing in private, behind locked doors, before the chancellor, who dismissed the bill for want of equity. Upon appeal to the Appellate Court for the First District that court in its decision held complainant was not entitled to an injunction against defendants restraining them from engaging or becoming interested in the business of buying, manufacturing or selling phosphates but was entitled to the other relief prayed, and reversed the decree, with directions to proceed in harmony with the views so expressed. A writ of certiorari was granted by this court for a review of the record on error.

The bill did not specify or describe any particulár method, process or appliance owned or used by defendant in error. On the hearing it introduced in evidence a paper marked exhibit 6, entitled, “The lime process for neutralizing free phosphoric acid.” The exhibit describes that process in this language :

“Two-thousand pounds of concentrated hot phosphatic liquor containing a substantial per cent of free phosphoric acid are run into a suitable mixing machine. In order to obtain the best results the temperature of the phosphatic liquor used should be at least 70 degrees C. If the liquor is weaker than 48 degrees Be., or an amount of free phosphoric acid is below forty-three per cent, we do not get as good a redaction between the liquor and lime, which results in much less evaporation of water or steam and consequently a wetter batch. If substantially all the phosphoric content in the liquor is in the form of free phosphoric acid (H3P04) and of a Be. of approximately 48 to 55 degrees, it is not necessary to use a hot liquor but good re-action will be obtained by using a cold liquor. To this hot liquor (cold under the circumstances last named) add slowly about 250 pounds, more or less, as required, of freshly-burned unslaked lime, (CaO,) or the liquor may be added to the lime if desired. The amount of lime necessary is arrived at by determining the percentage of free phosphoric acid in the liquor and then calculating the amount of lime required to neutralize the free phosphoric acid in the 2000 pounds of this liquor. As soon as they are brought together in the mixer there results a vigorous re-action between the caustic lime and the phosphoric acid, which re-action results in a great deal of heat. This heat serves to convert into steam a large percentage of the free water present in the batch, thus leaving the batch at the conclusion of the reaction in a much drier condition than by the use of any other re-agent. The lime used is preferably broken up to the size of a large walnut or small egg and should be of a high degree of purity in order to facilitate a more ready re-action with the phosphoric acid. Not over three or four per cent of slaked lime (Ca02H2) should be present, as a higher amount than this reduces the heat accompanying the re-action, thus cutting down considerably the water evaporation and not producing as dry a batch.

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Bluebook (online)
132 N.E. 806, 299 Ill. 532, Counsel Stack Legal Research, https://law.counselstack.com/opinion/victor-chemical-works-v-iliff-ill-1921.