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Foster-Miller, Inc. v. Babcock & Wilcox Canada

1st CircuitMarch 31, 2000No. 99-1227, 99-1228Cited 23 times
Plaintiff WinBabcock & Wilcox Canada$5,084,587 awarded
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Case Details

Judge(s)
Selya, Campbell, Stahl
Status — whether other courts must follow this ruling
Published
Procedural Posture — the stage the case had reached
appeal

Related Laws

No specific laws identified for this ruling.

Claim Types

Breach of Contract

Outcome

A jury found that Babcock & Wilcox Canada breached a confidentiality and non-disclosure agreement by using Foster-Miller's confidential technology in developing a small diameter, high pressure flexible hose. The appellate court affirmed the jury verdict and damages award.

What This Ruling Means

**The Dispute** Foster-Miller, a technology company, had a confidentiality agreement with Babcock & Wilcox Canada that prevented the Canadian company from sharing or using Foster-Miller's secret technology. However, Foster-Miller discovered that Babcock & Wilcox had broken this promise by taking their confidential technology for developing specialized flexible hoses and using it in their own products without permission. **The Court's Decision** A jury ruled in favor of Foster-Miller, finding that Babcock & Wilcox had indeed violated the confidentiality agreement. The court ordered Babcock & Wilcox to pay over $5 million in damages to Foster-Miller. When Babcock & Wilcox appealed this decision to a higher court, the appeals court upheld the original ruling and confirmed the large financial penalty. **What This Means for Workers** This case shows that confidentiality agreements are legally binding and courts will enforce them with significant financial consequences. For workers, this demonstrates that if your employer violates confidentiality agreements they've signed with other companies, they can face serious legal and financial penalties. It also reinforces that these agreements have real legal weight when properly enforced.

This summary was generated to explain the ruling in plain English and is not legal advice.

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