Riess v. Sanford

The plaintiff had a judgment against defendant Sanford restraining him from manufacturing or selling cactus phonograph needles made of and from cactus spines of the species, type and character manufactured by the plaintiff. Damages for the unlawful manufacture and sale of such needles were awarded plaintiff against this defendant in the sum of $2792. Judgment also went against the co-defendant granting similar injunctive relief and damages in the sum of $1500. This defendant did not appeal and the judgment against it has become final. The defendant Sanford has appealed on a typewritten record.

The trial court found that the plaintiff had established a valuable business throughout the United States in the manufacture and sale of cactus phonograph needles under the trade name of “Kaeti”; that in connection with said business he became the owner of certain trade or business secrets consisting of information as to the type of material used in the manufacture of said needles and the source of said material. The defendant, who Imew nothing about the business, entered the employment of the plaintiff and during a period of three years in the course of his employment became acquainted with and familiar with all the secrets of his employer wdth the secret intention of gathering such information for the purpose of using it in future competition with plaintiff. During such employment he secretly entered into a contract with his co-defendant, a competitor of the plaintiff in the manufacture and sale of phonograph needles, under which he undertook to make use of these trade secrets to learn the species of cacti used in the manufacture of said needles and the source of supply where such spines could be obtained, and to use such information in the manufacture of such needles and their sale to his co-defendant. Before entering into this contract the defendant learned from his employer that his co-defendant had unsuccessfully endeavored to obtain from plaintiff the exclusive right of distribution and sale of the phonograph needles manufactured by the plaintiff.

The evidence fully supports the findings. The needles manufactured and sold by the plaintiff were made from a

In their briefs each party states four questions which represent his views as to the questions involved on the appeal, and both devote the greater part of their briefs to a discussion of the evidence. We disregard the points stated as well as the discussion of the evidence because whatever conflict there may be in the testimony of the witnesses the undisputed evidence amply supports the findings of the trial court, and that disposes of the question of the sufficiency of the evidence to support the findings.

The controlling point of law involved is the accepted doctrine that no agent or employee having been intrusted in the course of his employment with secret and valuable information known only to his employer may thereafter utilize this secret knowledge against the interests or to the prejudice of his employer. (14 Cal. Jur. 198, 199.) This principle is well stated in 28 Am. Jur. 304, as follows: “The disclosure by an employee of trade secrets and other confidential information obtained by him in the course of his employment is a breach of trust, and it is well settled that a court of equity will restrain any threatened disclosure or use thereof to the detriment of the employer. The character of the secrets, if peculiar and important to the business, is not material. They may be secrets of trade, secrets of title, secrets of process of manufacture, or any other secrets of the employer

The judgment is affirmed.

Spence, J., and Dooling, J. pro tern., concurred.