An Elkhart, Ind., manufactured housing builder has filed suit naming Sterling Homes, a recently formed division of Forest River Housing, for alleged misappropriation of trade secrets.
According to the Elkhart Truth, five former employees of Patriot Homes left the company in January 2005 to start the modular home building arm of Forest River Housing, Wakarusa, Ind., a business unit of Forest River Inc.
Patriot contends that Forest River is violating an Indiana law that prohibits using trade secrets. The suit also alleges the five men took company property in the form of engineering calculations and computer files, sales data and dealer lists from Patriot’s Energymate Division.
According to the Truth, Steven Like, executive vice president and general counsel for Patriot Homes, said the five individuals did not sign non-compete contracts when they were hired by Patriot.
The suit is “seeking a preliminary injunction to prevent use of the home designs” along with unspecified monetary damages. July 6 has been set as the date to present to the court a motion for a preliminary injunction.