American Colortype Co. v. Continental Colortype Co.
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188 U.S. 104 (1903)
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U.S. Supreme Court
American Colortype Co. v. Continental Colortype Co., 188 U.S. 104 (1903)
American Colortype Company v.
Continental Colortype Company
Submitted December 22, 1902
Decided January 19, 1903
188 U.S. 104
An Illinois corporation transferred to a New Jersey corporation contracts of employment containing stipulations that the employs would not accept employment from any other person during specified periods and would never divulge the secrets of the trade. The New Jersey company, by consent of all parties, became substituted as a party to such contracts and instructed the employees who accepted the employment in valuable trade secrets. The employees, who were not citizens of New Jersey, then entered into an arrangement to work for a rival Illinois corporation.
Held that, as whatever claim the New Jersey corporation had was based on the promise made directly to it upon a consideration furnished by it, it was not prevented from maintaining an action in the Circuit Court of the United States for the Northern District of Illinois against such employees and the Illinois corporation to restrain the employees from working for, or divulging such secrets to, the Illinois corporation on the ground that the action was to recover the contents of a chose in action in favor of an assignee, the assignor being a citizen of Illinois.
The case is stated in the opinion of the court.