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Valco Cincinnati, Inc. v. N & D Machining Service, Inc.

24 Ohio St. 3d 41 (1986)

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Valco Cincinnati, Inc. v. N & D Machining Service, Inc.

Ohio Supreme Court

24 Ohio St. 3d 41 (1986)

Facts

Valco Cincinnati, Inc. (plaintiff) manufactured equipment, including heads and valves used by machines in applying glue to certain cardboard boxes. Valco hired James Draginoff (defendant) in 1976 as a machinist and later promoted him to production manager. Draginoff had no prior experience in commercial glue application. During his employment, Draginoff obtained permission to operate a machine shop in his brother’s garage. Draginoff and two brothers formed N & D Machining Service, Inc. (defendant). Valco loaned N & D a special tool to make applicator heads and contracted to purchase applicator heads and related parts from N & D. Valco supplied detailed drawings, sketches, and specifications for the applicator heads. After Draginoff resigned from Valco in 1980, Valco learned that N & D was using Valco’s information to make products for one of Valco’s competitors. Valco sued N & D and Draginoff, alleging wrongful appropriation of trade secrets. Valco sought, among other things, a permanent injunction against N & D and Draginoff using Valco’s trade secrets. The trial court granted Valco’s request and entered a permanent injunction. N & D and Draginoff appealed.

Rule of Law

Issue

Holding and Reasoning (Holmes, J.)

Concurrence/Dissent (Wright, J.)

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