Oscar Miller (P) contended the Miller brothers (D) had diverted a corporate opportunity for their own benefit from Miller Waste Mills. D's had started the Mills, which was in the business of recycling waste cloth into filters and rags for industry. In the process of the company's development, they found it necessary to expand their product lines and facilities, and eventually, through other methods of manufacturing, went into the plastics industry. They incorporated the new business separately and only ordered supplies from the Mills.

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