Opinion ID: 544777
Heading Depth: 2
Heading Rank: 3

Heading: Liability of Merieux

Text: 37 Appellants contend that liability should not be imputed to Merieux because appellee did not prove that Merieux conspired with Hildebrand and Berg or that Merieux knew of a breach of obligation by Salsbury's two former employees. Appellee avers, however, that appellants waived the right to raise this issue because they failed to present it to the district court in the context of the misappropriation claim. 38 Whether or not appellants waived this claim, it is without merit. The undisputed evidence fully supports the trial court's findings of required facts to hold Merieux liable. Before Merieux hired Hildebrand, Hildebrand sent a letter to a Dr. Gaudry, the Product Manager at Rhone-Merieux and a vice-president of Merieux, detailing Hildebrand's background. The letter informed Dr. Gaudry that Hildebrand directed the research, development and licensing of MG-BAC at Salsbury. According to Hildebrand's testimony, he informed Dr. Gaudry that he was personally involved in the direction of the research and product development and licensing of two especially innovative as well as commercially successful products, one of which was an avian MG bacterin (MG-BAC). Rec.Vol. 8 at 19. After writing the letter, Hildebrand met with both Dr. Gaudry and a Mr. Mahler, who is the President of Rhone-Merieux and of Merieux. 39 It is clear from the record that Merieux was fully aware of Hildebrand's role in the development, production and licensing of MG-BAC at Salsbury, that Salsbury was the only company in the United States commercially producing an inactivated MG bacterin at that time, and that Merieux began development of a competing vaccine only after Hildebrand was hired. The relation between Merieux and Hildebrand, who was hired as general manager, was such that the company knew of and had an interest in the circumstances surrounding the work Hildebrand and Berg performed at Salsbury and subsequently at Merieux. See Outside Carpets, 228 Ga. at 269, 185 S.E.2d at 68-69. 40 When Hildebrand contacted Berg in October 1985 about Berg's joining Merieux, Hildebrand was an officer at Merieux and represented the company's interests. He was authorized by the Board of Directors to fill the position. Hildebrand obviously knew that Berg had worked on MG-BAC at Salsbury, because they had worked together, and he so testified:Q: And you were aware, of course, that he [Berg] was the key person in the development of MG-BAC at Salsbury, were you not? 41 Hildebrand: Well, Mr. Berg was--Yes. Mr. Berg was involved in the development of the product. 42 Rec.Vol. 8 at 31-32. The record fully supports the inference that Merieux did not innocently undertake to develop, manufacture and license an MG vaccine, as appellants claim it did. We thus find no error in the district court's finding of liability on the part of Merieux, along with Hildebrand and Berg, for misappropriation of Salsbury's trade secrets.