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NDA Nets Plaintiff $50 Million

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Dur-a-Flex v. Laticrete International illustrates the value of a well-drafted nondisclosure agreement (NDA) – not to mention one that includes an attorneys’ fee provision.

Dur-a-Flex developed a trade-secret process for producing colored sand. Laticrete was a long-time Dur-a-Flex customer and the only customer for this product.

When Laticrete’s orders dropped significantly, Dur-a-Flex suspected that Laticrete was using the Dur-a-Flex process in violation of the NDA that Laticrete had signed.

Dur-a-Flex brought suit and won. The Superior Court of Connecticut affirmed a jury award of $43.7 million and awarded attorneys’ fees and costs in excess of $6 million.

Lesson: NDAs are not mere formalities.

Sample mutual and unilateral NDAs are available as Free Downloads on the Downloads page.

Check out all posts about nondisclosure agreements.

Dana H. Shultz, Attorney at Law  +1 510-547-0545  dana [at] danashultz [dot] com
This blog does not provide legal advice and does not create an attorney-client relationship. If you need legal advice, please contact a lawyer directly.

  1. 10/8/2010 | 12:19 pm Permalink

    Dana – You are absolutely right – NDAs are not a necessary evil.