Nature of the Case
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Facts
D worked in P's animation department from 1943-46. During the period of D's employment, cels and sketches were not supposed to be taken off the premises of the studio without permission. The cels were kept near the cameras until after the completion of any retakes. Then they were stored in the morgue. Background sketches, exposure, and model sheets were stored in the morgue, as well. During D's employment, some 20 million pieces of artwork (cels and sketches) were completed in connection with the Disney short subjects and feature films. Some of this material was used again, some were sold to the public through an authorized vendor, Courvoisier Galleries. P systematically destroyed the cels and sketches kept in the morgue. D secured the permission of P employees John Bond and Ben Mosley to take from the morgue the material which now comprises his D collection. It is undisputed that Bond worked at P in the animation department during this period. Bond was head of the animation department. It is also undisputed that Mosley worked in the morgue during this period. The collection was kept at D's home and was shown to anyone who came to visit. Some were stored in the garage but pieces were on display throughout the house. D his wife also made mats and placed these pieces in frames. Christie's representatives met D, saw the collection, and entered into an agreement to auction it off. P found out about the auction. P requested the return of the artwork and cancellation of the auction. P claimed it prohibits its employees from obtaining property belonging to P because P needs to protect its own program of selling this material, which currently produces revenue of about $270,000 per year. P moved for a preliminary injunction.
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