Opinion ID: 1924519
Heading Depth: 1
Heading Rank: 3

Heading: the action

Text: On September 26, 1980, about six weeks after Mahoney's resignation, ECC sued CMI and Mahoney (hereinafter referred to together as CMI) claiming that CMI misappropriated ECC's trade secrets. On October 1, 1980, Judge William Posten issued an order which enjoined CMI from accepting orders from ECC's principal Customer (not named in the complaint but later shown to be IBM) with respect to brushless motors. After a preliminary hearing Judge Lindsay Arthur of the Hennepin County District Court granted a temporary injunction in favor of ECC on April 16, 1981. CMI was enjoined by this order, pending decision at trial, from directly or indirectly selling or soliciting sales of any low inertia, DC, electric servo motor for which any component not available on the open market has dimensions closer than 10% to Plaintiff's 1125 motor. It was later established that CMI had continued to produce and sell electric motors after April 16, 1981. On July 9, 1981, Judge Arthur issued an order holding CMI in civil contempt for violating the temporary injunction. CMI was ordered to pay ECC $50.00 damages for each offending motor which CMI had sold since April 16, 1981, plus the premiums on ECC's cost bond. The $50.00 per motor damages were later rescinded for lack of evidentiary foundation, but CMI remained liable for the bond premiums. A trial was held before Judge Arthur, without a jury, from June 15, 1981 to July 7, 1981. By order of October 19, 1981, Judge Arthur found that CMI had misappropriated ECC's trade secrets and enjoined CMI from producing or selling any brushless or low inertia electric motor or tachometer with dimensions within 10% of the dimensions of ECC's 1125 motor or ECC's brushless motor produced for IBM. The injunction was to be in effect for 12 months after the expiration of the last stay of execution of the order. The court also awarded ECC $50.00 in exemplary damages (but no compensatory damages) for each offending motor sold. CMI appealed separately from (1) the temporary injunction order of April 16 and the contempt order of July 9 (No. C7-81-894) and (2) the final order of October 19 (No. C0-81-1188). ECC filed a notice of review of the district court's final order, seeking compensatory damages, attorney fees, and further injunctive relief, and seeking recovery against John Mahoney individually. The appeals have been consolidated for consideration.