Suffolk County Jury Awards Troy Industries $505,000, a Verdict In Favor of Proprietary Trade Secrets; Judge Issues Permanent Injunction

BOSTON (June 26, 2007) Late last week, in a significant victory for the protection of company trade secrets, a Suffolk County Superior Court jury rendered a verdict in favor of Troy Industries, Inc. of West Springfield, Massachusetts. The jury found that the defendant, Samson Manufacturing Corporation, violated a confidentiality agreement and wrongfully used trade secrets of Troy Industries. Troy Industries is a designer of military weapons and weapons accessories. At issue were designs for multiple accessory products for M16 rifles and carbine used by the U.S. military in training and in combat.

The jury awarded Troy Industries $505,000.

The jury also found that Samson engaged in unfair and deceptive business practices in violation of Massachusetts General Laws Chapter 93A. This Chapter 93A finding entitles Troy Industries to an award of its costs and attorney fees.

In a move to further protect Troy Industries, yesterday, Superior Court Justice Ralph D. Gants issued a Permanent Injunction ordering that Samson is permanently enjoined from “manufacturing or contracting with others to manufacture for sale…”, “soliciting, advertising, or accepting orders for sale…”, “disclosing to anyone any design drawings…”, and “assisting any third party in the design or manufacture…” of the Troy Industries accessory products.

“This significant jury verdict and injunction reaffirm to companies, their consultants, contractors, and vendors, that confidentiality agreements will be enforced in Massachusetts and that they provide potent protection for commercial relationships,” said lead trial counsel Damian LaPlaca. “Without the enforcement of legal documents like these, companies could not openly share privileged information without the threat of losing ownership of innovative ideas.”

Drawing from Donovan Hatem’s strengths in the areas of trade secrets law and unfair business practices, the Donovan Hatem team of Business Litigation and Corporate Law attorneys that represented Troy Industries was led by Damian LaPlaca, Sarah Willey, and Christian Samito.