Alltype Fire Protection Co. v. Mayfield

88 S.W.3d 120, 2002 Mo. App. LEXIS 1852, 2002 WL 31011130
CourtMissouri Court of Appeals
DecidedSeptember 10, 2002
DocketED 80262
StatusPublished
Cited by13 cases

This text of 88 S.W.3d 120 (Alltype Fire Protection Co. v. Mayfield) 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
Alltype Fire Protection Co. v. Mayfield, 88 S.W.3d 120, 2002 Mo. App. LEXIS 1852, 2002 WL 31011130 (Mo. Ct. App. 2002).

Opinion

CHARLES B. BLACKMAR, Senior Judge.

Under date of July 1, 1998, defendant Mayfield entered into an employment agreement with plaintiff Alltype Fire Protection Company, d/b/a Lynch Fire Protection, Inc. (Alltype). This contract was a continuation of his existing employment. Significant terms of this agreement read as follows:

3. Duties. Employee shall be employed in the position of Branch Service Manager. Among other things, Employee’s duties shall include the sale, inspection, servicing and installation of fire prevention devices and equipment and fire safety systems.
6.Restrictive Covenants
A. Employee acknowledges that by reason of his/her employment by Employer (s)he has or may acquire technical, financial or business information about Employer which is not published or readily available to the public including, but not limited to,' trade secrets, ... and lists of and other information pertaining to customers of Employer (“Confidential Information”)....
B. Employee acknowledges that by reason of his/her employment by Employer, (s)he has or may acquire Confidential Information, (s)he has or may become personally acquainted with Employer’s customers ..., and that Employer has or may spend considerable time, money and/or energy to train Employee. Employee, therefore, agrees that during the term of this agreement and for a period of twenty four (24) consecutive months immediately following termination of Employee’s employment with Employer, regardless of how, when or why that employment may end, Employee shall not in any capacity, directly or indirectly, for himself/herself or any *122 other person or entity, actually or attempt:
(i) to engage in the sale, inspection, servicing or installation of fire extinguishers, other fire prevention devices and equipment, or fire safety systems, or accept employment from or be employed by or perform duties for or render services to any employer, person or entity engaged in the Fire Safety Business ... within areas having a radius of one hundred (100) miles of the location of each of the current business offices of Employer ... or
(ii) to solicit or interfere with, takeaway or divert any customer of Employer, or the business or patronage of any such customer;....

The agreement goes on to provide that the employer may seek temporary and permanent injunctive relief for violations and also provides as follows:

7. Remedies.
C. In the event this Agreement shall be placed in the hands of an attorney for enforcement, Employee agrees to pay all costs and expenses of such enforcement, including reasonable attorneys’ fees....

On January 29, 2001, defendant May-field gave notice orally and in writing of his decision to terminate his services for Alltype. During the last week of February he entered into the employment of Marmic, a competitor. Marmic’s local manager, Michael Smotherman, testified that he hired Mayfield for the primary purpose of servicing Marmic’s customers.

On March 9, 2001, the plaintiff filed in the court below a petition in two counts against Mayfield and Marmic.

Count I, which appears to be directed solely against Mayfield, alleged violation of the non-compete agreement, sought specific injunctive relief against alleged violations of the non-compete agreement, and requested a temporary restraining order. The prayer of Count I also included the usual equitable request for other relief, and “for plaintiffs costs incurred and expended herein.” There was no specific prayer for monetary damages or for attorneys’ fees.

Count II declares solely against Marmic. The prayer is as follows:

WHEREFORE, Plaintiff prays this Court issue its injunction against Marmic ... enjoining it from using information acquired from Mayfield and prohibiting it from approaching any customer of the Plaintiff and awarding to the Plaintiff such sum as maybe shown to have been incurred as a result of the misuse of confidential trade information and for such other and further relief as may be granted.

On March 9, 2001, the court below, Hon. John W. Grimm presiding, entered a Temporary Restraining Order as prayed. On March 19, 2001, the case was transferred to Judge William L. Syler. On May 3, 2001, the plaintiff filed “Application for Order to Show Cause and for Adjudication of Contempt” against both defendants. The court set a hearing on the application and on the granting of a permanent injunction for May 25, 2001, ordering that the TRO remain in effect until the hearing. The defendants filed answers to the petition.

On May 19, 2001, Marmic terminated Mayfield’s employment. Marmic’s local manager, Smotherman, ordered the termination at the suggestion of Marmic’s counsel, because of the pending litigation. Smotherman testified that he was previously unaware of any contract between the plaintiff and Mayfield which restricted Mayfield’s future employment.

*123 Evidence was heard on several days, concluding on September 5, 2001. No evidence was offered on the matter of attorneys’ fees. Order Granting Permanent Injunction was issued on September 15, 2001, and an amended order was issued on September 25, 2001. The order granted a permanent injunction against both defendants substantially as prayed, except that the defendants were enjoined for one year only, commencing January 29, 2001. The order did not include any damages or attorneys’ fees against either defendant. The order contained specific findings as follows:

13. The employment agreement, and specifically the covenant not to compete, is reasonable in time; duration of two (2) years from the date of termination of employment is unreasonable. One (1) year is reasonable. The scope of the covenant is reasonable ....
14. That Ron Mayfield has violated the terms of the Temporary Restraining Order by engaging in the fire protection business, and in particular by servicing and installing fire protection equipment after the entry of the Temporary Restraining Order on March 9, 2001.

The court also found that “Marmic, being in privity with Mayfield and having taken advantage of Mayfield’s knowledge, is bound by the injunction.” The court found Mayfield to be in contempt of the Temporary Restraining Order, but made no such finding as to Marmic.

Defendant Mayfield filed a timely post-trial motion on October 25, 2001, which was overruled. The plaintiff filed no post-trial motion of any kind. Rather, on October 16, 2001, it filed a Notice of Appeal. Neither defendant has appealed.

In its first point, the plaintiff asserts that the court erred in limiting the temporal length of the injunctive relief granted to one year from the date Mayfield voluntarily terminated his employment, and that the court should have granted relief for the entire two-year period specified in the employment contract. We agree with this contention.

The scope of appellate review of a court tried case is defined in Murphy v. Carron,

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Bluebook (online)
88 S.W.3d 120, 2002 Mo. App. LEXIS 1852, 2002 WL 31011130, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alltype-fire-protection-co-v-mayfield-moctapp-2002.