Alex Foods, Inc. v. Metcalfe

290 P.2d 646, 137 Cal. App. 2d 415, 1955 Cal. App. LEXIS 1202
CourtCalifornia Court of Appeal
DecidedNovember 30, 1955
DocketCiv. 5083
StatusPublished
Cited by17 cases

This text of 290 P.2d 646 (Alex Foods, Inc. v. Metcalfe) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alex Foods, Inc. v. Metcalfe, 290 P.2d 646, 137 Cal. App. 2d 415, 1955 Cal. App. LEXIS 1202 (Cal. Ct. App. 1955).

Opinion

GRIFFIN, J

Originally, on May 7, 1954, plaintiff and respondent brought this, injunction proceeding against defendant and appellant Bill W. Metcalfe, a former employee *417 of plaintiff, and obtained a temporary order restraining him from competing with plaintiff company in the capacity of driver salesman in the sale of Spanish foods, salads, etc. Later, on May 19, 1954, by amendment to the complaint joining defendant and appellant Lloyd Torgerson, an independent dealer in such goods, and who employed Metcalfe as a driver salesman, Torgerson was, together with Metcalfe, restrained accordingly. Appeals were taken from these respective orders out of an abundance of precaution and fear that plaintiff might believe these temporary restraining orders were still effective, since they were somewhat broader in terms than the preliminary injunctive order subsequently issued. Later,- after a hearing of the injunction matter, the court, by minute order entered May 22, 1954, granted a preliminary injunction against both defendants and a formal written order was signed on May 28, 1954, setting forth in detail the specific provisions of the injunction.

Without determining whether the temporary restraining orders are or were effective we will, for the purpose of deciding the real issues here involved, conclude that the temporary orders, if they did continue in existence without a special order dissolving them, were merged with the subsequent formal written order granting the preliminary injunction on May 28, 1954. (Knight v. Cohen, 5 Cal.App. 296 [90 P. 145]; 14 CaL.Jur. p. 186, § 11.)

Plaintiff Alex Foods, Inc. (hereinafter referred to as Alex) manufactures perishable Spanish food products, and sells and distributes them throughout Southern California. Its principal place of business and plant are in Orange County. Its principal competitor in that district is XLNT Spanish Food Company (hereinafter referred to as XLNT), a Spanish food products company. Bight additional concerns with size-able businesses compete with the named companies in the manufacture, sale, and distribution of such Spanish food products. Alex and XLNT manufacture and distribute Spanish foods of the same general nature and character, although XLNT does, and Alex does not, manufacture a line of canned goods in addition to its other Spanish food products. Alex distributes a certain cheese line and fish line which XLNT does not distribute.

Defendant and appellant Torgerson is a wholesale food distributor specializing in XLNT Spanish Food products. He has sold them since 1929. When this action was commenced he was selling and distributing in Los Angeles County *418 and parts of Orange County pursuant to an agreement- with XLNT which allocated the territory to him and fixed its boundaries. At the time this action was filed Torgerson had set up five routes in the territory assigned to him, and these were served by three trucks, each of which worked a different route every day. Three of these routes were in Orange County and had a total of 75 customers.

Defendant Metcalfe is a salesman by occupation. For approximately six years prior to the hearing of this cause he had been a salesman of Spanish foods. From 1946 to 1948, he worked as delicatessen manager for another company and as such he became familiar with many elements of the delicatessen business, including the method of sale and character of food products sold in delicatessen stores including Spanish-American foods. During this time he purchased and merchandised the products of XLNT, Alex, and Superior Food Products Company. In 1948, he accepted employment as a route salesman for one Eothaermel, who was then a distributor of Spanish food products for Alex. He was then assigned a definite route in Eothaermel’s territory around Pomona, and was issued a small list of markets and cafés within the area of his route and told to build up the route by calling on all the additional markets and cafés in that area. He remained on that route for about a year. In June of 1949, he was assigned a route in Orange County, and while working this route he serviced with Spanish foods some markets and stores who were customers of Alex when this action was commenced. Sometime in 1950, Eothaermel’s distributorship was terminated and he “merged” with Alex. Meanwhile, Metcalfe continued to work for Eothaermel on the Orange County route until the “merger” with Alex and was promoted to supervisor, continuing in that capacity for Alex after the merger until leaving their employ in 1954. Metcalfe’s duties as supervisor for Alex included developing routes in new areas, serving as relief route driver when regular drivers went on vacation and at other times when relief was necessary, breaking in new men as route drivers, serving as liaison between the front office and the route drivers, and going along with the regular route drivers in order to smooth over any trouble which had developed at any stop on his route. When Metcalfe relieved a regular driver for Alex, he was given the driver’s route list and served the stops thereon. He made no effort on such occasions to acquire new customers. The route lists contained the names and addresses *419 of the customers, what they normally bought and the dates they were called upon. In developing new routes for Alex, Metcalfe was assigned a few stops from an existing route and a new area, and he was instructed to call on every market and café in that area. He was left to his own discretion in this pursuit and received no particular instructions from Alex, although Alex did furnish him with an appropriate price list of its products. After acquiring a sufficient number of stops in the new area, Metcalfe would turn the route over to a new driver and repeat the process in another area. In performing the duties of a supervisor and relief route man, Metcalfe operated in the counties of Orange, San Bernardino, San Diego, Riverside, Los Angeles, Ventura and Santa Barbara. As a consequence he became acquainted with the various routes established and operated by Alex in those counties. While Metcalfe was employed by Alex, the company prepared an addressograph system covering the customers on its various routes. Individual route salesmen submitted lists of customers from their routes and the addressograph lists and plates were taken from these salesmen’s lists. Metcalfe assisted in the preparation of the lists and plates covering Orange and San Diego Counties. In addition to assisting with the addressograph system, Metcalfe also helped manage routes for Alex. Metcalfe testified he did not keep any of the route books nor any records or memoranda of any information he acquired, when he left Alex. He testified that although he helped prepare these lists, he took none of them with him and did not need such lists because he could well remember the customers’ names and places of business and the information contained thereon, without the use of them. As a result of his experience with Alex, Metcalfe became acquainted with the price of products, discount policy for quantity purchases, the type of its products, and difficulties encountered with respect to their perishability.

Toward the end of Metcalfe’s employment by Alex, differences arose between Metcalfe and Alex’s salesmanager over certain matters and between Metcalfe and the company over his future status and duties.

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Bluebook (online)
290 P.2d 646, 137 Cal. App. 2d 415, 1955 Cal. App. LEXIS 1202, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alex-foods-inc-v-metcalfe-calctapp-1955.