Christopher Davis
Professor Kerry L. Myers, JD, CFE
BUL 3320
20 January 2017
Breach of NDA Resulting in Punitive Damages Nolo Dictionary describes a Nondisclosure Agreement as “A legally binding contract in which a person or business promises to treat specific information as a trade secret and not disclose it to others without proper authorization” (Nolo). On May 27, 2008, the Honorable David H. Coar issued an Opinion and Order on the RRK Holding Company v. Sears, Roebuck and Co., in which Sears was used as a $25 Million example of the Uniform Trade Secrets Act (No. 04 C 3944 Document #329). The case started in 1997 when Sears wanted RRK, a tool company, to manufacture a new type of spiral saw for their Craftsman Brand. The two companies signed a non-disclosure agreement in 1999 at which time RRK shared propriety trade secrets with Sears on the proposed design of the new saw. The contract between the two companies never materialized. However, two …show more content…
The pivotal argument was that there was no way Sears could of reverse engineered the design, manufactured, and launched the saw in the two-week period between RRK launching the product and Sears launching it. I fully agree with the court’s ruling in this case on multiple fronts. Sears did steal trade secrets and they did so with callous disregard for the validity of the NDA.
Works Cited
RRK Holding Company, v. Sears, Roebuck and Co., The United States District Court for the Northern District of Illinois Eastern Division. No. 04 C 3944
"Nondisclosure Agreement | Nolo's Free Dictionary of Law Terms and Legal Definitions." Nolo.com. N.p., n.d. Web. 27 Jan. 2017.
Fleming, Lisa. "Breach of Non-Disclosure Agreement Costs Sears $25 Million." Bromberg Sunstein LLP (June 2008): n. pag.
Professor Kerry L. Myers, JD, CFE
BUL 3320
20 January 2017
Breach of NDA Resulting in Punitive Damages Nolo Dictionary describes a Nondisclosure Agreement as “A legally binding contract in which a person or business promises to treat specific information as a trade secret and not disclose it to others without proper authorization” (Nolo). On May 27, 2008, the Honorable David H. Coar issued an Opinion and Order on the RRK Holding Company v. Sears, Roebuck and Co., in which Sears was used as a $25 Million example of the Uniform Trade Secrets Act (No. 04 C 3944 Document #329). The case started in 1997 when Sears wanted RRK, a tool company, to manufacture a new type of spiral saw for their Craftsman Brand. The two companies signed a non-disclosure agreement in 1999 at which time RRK shared propriety trade secrets with Sears on the proposed design of the new saw. The contract between the two companies never materialized. However, two …show more content…
The pivotal argument was that there was no way Sears could of reverse engineered the design, manufactured, and launched the saw in the two-week period between RRK launching the product and Sears launching it. I fully agree with the court’s ruling in this case on multiple fronts. Sears did steal trade secrets and they did so with callous disregard for the validity of the NDA.
Works Cited
RRK Holding Company, v. Sears, Roebuck and Co., The United States District Court for the Northern District of Illinois Eastern Division. No. 04 C 3944
"Nondisclosure Agreement | Nolo's Free Dictionary of Law Terms and Legal Definitions." Nolo.com. N.p., n.d. Web. 27 Jan. 2017.
Fleming, Lisa. "Breach of Non-Disclosure Agreement Costs Sears $25 Million." Bromberg Sunstein LLP (June 2008): n. pag.