In the last few years, we’ve heard a lot about non-disclosure agreements or “NDAs.” They are commonly used to protect against disclosure of confidential business information or financial data and similar types of highly sensitive information. Sometimes the question arises, what happens if someone breaches an NDA?

In a recent Maryland case, the answer had a whipsaw-like quality, as a jury returned a $20 million verdict only to see the trial judge reduce the award to $1. In an opinion written by Judge Steven Gould, and joined by fellow panelists Judge Gregory Wells and Senior Judge James Eyler, the Court of Special Appeals affirmed that drastic reduction. Adcor Indus, Inc. v. Beretta U.S.A. Corp., No. 0118, Sept. Term, 2019 (Md. Ct. Spec. App. April 1, 2021).

Adcor’s business includes designing and manufacturing firearms, and one of its products is an AR-15 platform rifle known. Beretta also designs, manufactures, and sells firearms and was interested in entering the market for AR-15 rifles. Looking to combine its marketing expertise with Adcor’s technical and manufacturing proficiency, it wanted to explore a possible joint venture that would result in a product called the BRX-15.

This article originally appeared in the Maryland Appellate Blog. To continue reading the post, click here: