Zoecon Industries v. American Stockman Tag Co. - United States Court of Appeals for the Fifth Circuit

Zoecon Industries v. American Stockman Tag Co.

By United States Court of Appeals for the Fifth Circuit

  • Release Date: 1983-09-09
  • Genre: Law
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Zoecon Industries v. American Stockman Tag Co. United States Court of Appeals for the Fifth Circuit Book Review Score: ★★★★★ 5/5 stars

In this diversity case the issue the appeal raises is whether a memorandum containing the names, addresses, and purchasing characteristics of a businesss customers is a trade secret under Texas law. The defendants, Carolyn Reed, Nelda Poncik, and the American Stockman Tag Company, appeal from a judgment permanently enjoining them from (1) using certain stamping equipment identical with that used by Temple Tag Company, (2) disclosing the modifications made to that type of equipment by Temple Tag, and (3) using or disclosing the contents of a customer list obtained from Temple Tag. The court also awarded actual and exemplary damages to the plaintiff, Zoecon Industries. The district court found that Reed and Poncik breached a confidential relationship by misappropriating the trade secrets of their former employer, Temple Tag Company, a Zoecon subsidiary. The district court also found that Reed, assisted by Poncik, breached a non-competition agreement she had entered into with Zoecon by forming American Stockman, a competing business.

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