The Iowa Court of Appeals has ruled that a Tama designer and builder of equipment used in factories to make products will get a trial to determine whether or not Pella Corporation stole trade secrets.
Deimco Finishing Equipment of Tama alleged in a 2008 lawsuit that Pella Corp engineers disassembled Deimco-designed equipment and made their own version, which they believe is in violation of the Iowa’s Trade Secrets Act. Deimco says it provided the equipment to Pella Corp under contract, reserving the ownership rights of the design. In 2013, a Tama County judge ruled in favor of Pella Corp and dismissed the lawsuit, concluding that Deimco had not taken reasonable steps to maintain the secrecy of the designs. The Court of Appeals overturned that decision, stating there were enough legal questions raised for the suit to go to trial. Pella Corp attorney Randall Kahnke said in a statement that the company hasn’t decided yet on whether to ask the Iowa Supreme Court to review the appeals court decision. Kahnke says Pella Corp believes it acted ethically and is confidently awaiting the opportunity to tell its story.