Kadant, Inc. v. Seeley Machine, Inc.

Corlew, a former employee of Kadant, Inc. (plaintiff), had used a computer-assisted drawing machine to create manufacturing drawings for Kadant's papermaking-machine cleaning products, and had signed a confidentiality agreement barring personal use of that information. After Kadant fired him in 2001, Corlew went to work for Seeley Machine, Inc. (defendant) in 2002. Seeley soon began selling cleaning products it said were reverse engineered from Kadant's, including Kadant's cleaning nozzles. Kadant sued, arguing that Seeley could not possibly have reverse engineered the nozzles in the short time Corlew had been there, so Corlew must have stolen Kadant's trade-secret design specifications instead. Kadant offered no direct evidence of theft, relying only on the inference from timing, while Seeley said reverse engineering its products was actually quick and easy. Kadant moved for a preliminary injunction.