Adrian N. Baker & Co. v. Demartino

733 S.W.2d 14, 1987 Mo. App. LEXIS 4227
CourtMissouri Court of Appeals
DecidedJune 16, 1987
Docket51856
StatusPublished
Cited by14 cases

This text of 733 S.W.2d 14 (Adrian N. Baker & Co. v. Demartino) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Adrian N. Baker & Co. v. Demartino, 733 S.W.2d 14, 1987 Mo. App. LEXIS 4227 (Mo. Ct. App. 1987).

Opinion

DOWD, Judge.

Defendant, Michael DeMartino, appeals from a decree of the trial court which granted plaintiff-respondent, Adrian N. Baker & Co., a permanent injunction based upon restrictive covenants contained in an employment agreement. We affirm.

The trial court could reasonably have found the following. Defendant was hired in September 1980 as an insurance agent/broker by respondent insurance agency/brokerage firm. Although negotiations took place at the time of employment, the employment agreement (dated September 8, 1980) was not signed until December 1980. The agreement contained the following covenant:

7. Covenants not to Compete. Employee hereby agrees that for a period of two (2) years following the termination of his employment by the Agency, whether such termination is voluntary or involuntary, or with or without cause, he will not, directly or indirectly, either as an individual for his own account or as an officer, employee, agent or salesman of any other firm or corporation (a) solicit or write, or aid in the solicitation or writing of, any insurance coverage comparable to or competitive with that offered or written by the Agency for customers who, at the time of such termination, are customers of the Agency....

The agreement also contained a covenant stating that all records remain the property of the Agency and that employees are restricted from using or disclosing confidential information.

Appellant was to receive a forty-five percent commission on all premiums billed. Appellant proved successful and after five years, was earning an income substantially equal to that of the principals of the agency. Appellant was then promoted to assistant vice president in March 1985.

Appellant was asked in January 1985 to accept a new rate of compensation which would have reduced his rate of commission 1 and removed him from the profit sharing plan, but which would have provided him an equity interest in the agency. Appellant rejected the proposal, and in the spring of 1985 an outside consultant was hired to evaluate the agency’s business operations. The study concluded that the recent loss of a major account had a severe impact on the agency and it was recommended that the compensation rates be changed in a manner similar to that previously proposed to appellant which he continued to oppose.

Appellant was terminated on October 22, 1985. He contends the termination was due to his refusal to accept a reduction in compensation. Respondent contends the termination was due to appellant’s poor relations with and mistreatment of several underwriters and staff at the agency, and his copying and removal of files contrary to agency policy and in violation of the employment agreement.

After his termination, appellant contacted some of his former customers (and thus, respondent’s customers) and told them generally that he was still in the insurance business, that he had been fired by respondent’s firm, that he was subject to a covenant not to compete, that it was being litigated, and that he would talk to them as soon as possible.

Respondent then filed a petition on November 4, 1985 alleging appellant had vio *16 lated the covenant not to compete and had taken confidential records. A temporary restraining order was granted. Appellant subsequently filed an answer and counterclaim requesting a declaratory judgment that the covenant not to compete is invalid and unenforceable and requested damages for breach of contract for failure of respondent to pay commissions owed appellant. Additional hearings were held and a preliminary injunction issued on December 20, 1985. Following further hearings in March and April, the permanent injunction from which appellant appeals was entered May 30, 1986. Appellant was denied relief on the request for a declaratory judgment and was awarded $790.29 for an unpaid commission on a life insurance policy. Respondent does not appeal the award.

Appellant makes the following contentions: (1) The trial court erred in holding appellant violated the employment agreement in contacting respondent’s customers in that such contacts did not constitute solicitation as prohibited by the agreement; (2) The trial court erred in holding that respondent could enforce the covenant not to compete in that respondent was the first to breach the employment agreement when it failed to pay appellant the correct amount of commissions due him; (3) The trial court erred in holding the covenant enforceable in that respondent did not have good cause to discharge appellant; (4) The trial court erred in not holding that enforcement of the covenant is inequitable.

Appellate review of a court tried case is governed by Murphy v. Carron, 536 S.W.2d 30 (Mo. banc 1976). The trial court’s determination will not be disturbed on appeal “unless there is no substantial evidence to support it, unless it is against the weight of the evidence, unless it erroneously declares the law, or unless it erroneously applies the law.” Murphy, supra, at 32. “Although the evidence might support a different result, we give deference to the trial court’s conclusion.” Forms Mfg. Inc. v. Edwards, 705 S.W.2d 67, 68 (Mo.App. 1985).

Appellant contends in his first point the trial court erred in finding appellant’s contacts with his former customers to be a form of solicitation.

Solicitation was defined in Bittiker v. State Bd. of Registration for the Healing Arts, 404 S.W.2d 402 (Mo.App.1966), which involved the revocation of a physician’s license pursuant to a statute which prohibited the solicitation of patronage by a physician. The court found “soliciting” to be a nontechnical word and stated that in construing nontechnical words and phrases, statutory words must be given their plain or ordinary meaning. Likewise, language contained in a covenant not to compete “will be considered according to the plain, ordinary and usual meaning of the words and phrases it contains....” Wineteer v. Kite, 397 S.W.2d 752, 755 (Mo.App.1965). “Soliciting” is construed in Bittiker “as meaning to ask for or to request some thing or action in language which convinces that the asking or requesting is being done in earnest and that the solicitor wants results.” Bittiker, supra, at 405. Similarly, Black’s Law Dictionary defines “solicit” as: “To appeal for something; to apply to for obtaining something; to ask earnestly; to ask for the purpose of receiving.”

When appellant contacted his former customers he told them that he liked doing business with them, that he would like to do business with them again in the future once the litigation as to the covenant was resolved, that he was still in the insurance business, that he was affiliated with another agency, that he would talk to them as soon as he was able, and that he would keep in touch with them as to his status. He also told some customers that he had been fired because he refused to take a cut in pay and that respondent had treated him unfairly.

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Bluebook (online)
733 S.W.2d 14, 1987 Mo. App. LEXIS 4227, Counsel Stack Legal Research, https://law.counselstack.com/opinion/adrian-n-baker-co-v-demartino-moctapp-1987.