Chester Creek Technologies v. George Kessler

Chester Creek Technologies sued George Kessler and Secret Seven Corporation for breach of contract and he counterclaimed for breach of the same contract. George Kessler founded Secret Seven Corporation in 1999 to design and manufacture computer keyboards and mouse devices for children. Secret Seven borrowed $427,625 from Wells Fargo Bank to fund the project. The loan was guaranteed by Kessler and Jim Gustafson, a Duluth businessman and former state senator. Gustafson and another man formed Chester Creek Technologies, Inc. to acquire and liquidate Secret Seven's inventory and to pay off the $260,000 balance due on the loan. Chester Creek hired Kessler to help hit liquidate the assets of Secret Seven but claimed that he breached the agreement by establishing a side business. It claimed that Kessler took the names and addresses of customers and supplier that were trades secrets and interfered with its relationships with existing customers.

Kessler admitted to be hired by Chester Creek but claimed that the plan was to allow him to purchase the assets, pay off the loan and continue his business.