Trade Secrets Bar Insulation-Maker Deal: Court

Law360, New York (February 2, 2009, 12:00 AM EST) -- A federal judge has put the kibosh on a deal between insulation manufacturers, granting a preliminary injunction to Industrial Insulation Group LLC on the ground that its predecessor's prior agreement with Sproule Manufacturing Co. Inc. protects trade secrets related to the manufacture of perlite insulation.

In an ominous decision for Sproule, Judge Melinda Harmon of the U.S. District Court for the Southern District of Texas issued the injunction Wednesday, barring a deal the company made last year with the plaintiff’s competitor ITW Insulation Systems.

Holding that...
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