Henry Hope X-Ray Products, Inc. v. Marron Carrel, Inc., an Arizona Corporation and Karl Ungar
Opinion
Opinion
Skopil, J.
STATEMENT OF THE CASE
Henry Hope X-Ray Products, Inc. (“Hope”) designs, manufactures, and sells film processing equipment, including roller transport processors. Hope’s film processors process thin-base roll film without the attachment of a leader to the film. Only Hope makes machines that process sheet and roll film side-by-side. Hope endeavors to keep secret the design and means of producing these machines.
In June 1975, Hope hired Karl Ungar. Ungar signed a non-disclosure agreement, agreeing not to disclose confidential information to anyone outside Hope during or after his employment. When hired, Ungar had no experience processing photographic film or paper. During his first six months at Hope, Ungar revised drawings of the roller transport machines. Subsequently he worked with Henry Hope, President of Hope, laying out rack sides for the roller transport machines.
In April 1978, Ungar left Hope to work for Marrón Carrel, Inc. Marrón Carrel had not previously attempted to make a roller transport processing machine. Ungar attempted to build one for Marrón Carrel. Marrón Carrel intended to display its machine at an industry seminar in October 1978.