Alex Previts

CASE: CVD VS. A.S. MARKHAM CORPORATION

What are the critical legal issues in this case?

- Markham is suing Donadio and Connolly (CVD Inc.) for starting a business that directly
competed with Markham, who they had worked for prior to their company’s creation.
- They used proprietary information and subject inventions from Markham.
- Markham’s employment contract restricted the use of its proprietary information and
subject inventions, including customers’ lists and manufacturing developments.
- Did not include a non-compete contract

As a juror, what decision would you reach on each of these issues? On what facts do your
decisions hinge?
- The main issue is that there was no non-compete clause, so Donadio and Connolly had
every right to create their business even though it competed with Markham.
- There was a written agreement in their contracts that would not allow them to use subject
inventions or proprietary information from Markham after their employment was
terminated, but not if they were passed into public domain or if they are common
knowledge practices.
- I would decide in CVD’s favor.

With the benefit of hindsight, what could A.S. Markham have done to prevent this case from
occurring?
- Markham should have, and I’m sure will in the future, include a non-compete agreement
in their employment contracts.
- Then, even if they used Markham’s information, they would have to use it in a different
industry that would not affect their business.

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