Ashland Oil, Inc. v. Tucker

768 S.W.2d 595, 1989 Mo. App. LEXIS 353, 1989 WL 21728
CourtMissouri Court of Appeals
DecidedMarch 14, 1989
Docket54557
StatusPublished
Cited by9 cases

This text of 768 S.W.2d 595 (Ashland Oil, Inc. v. Tucker) 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
Ashland Oil, Inc. v. Tucker, 768 S.W.2d 595, 1989 Mo. App. LEXIS 353, 1989 WL 21728 (Mo. Ct. App. 1989).

Opinion

SIMON, Judge.

Robert T. Tucker, appellant, appeals from a judgment in favor of Ashland Oil, Inc., respondent, enforcing a non-competition service agreement. The trial court found the service agreement to be a valid and enforceable contract and permanently restrained and enjoined Tucker, for the period of one year from his termination with Ashland from, in pertinent part, (a) directly or indirectly obtaining or continuing in the employment of any competitor of Ashland; (b) directly or indirectly soliciting business from any client or customer of Ashland; and (c) directly or indirectly assisting or participating in the employment, solicitation or recruiting of any other employee of Ashland who had worked for Ashland during the period and in the capacity set forth in the agreement. The order limited the restraint to the geographical area of eastern Missouri and southern Illinois. Additionally, the court ordered Ashland to pay Tucker the sum of $5,400 less ordinary payroll tax deductions for accrued vacation and severance pay. The trial court made extensive findings of facts and conclusions of law.

On appeal, Tucker contends that the trial court erred in: (1) enforcing the non-competition service agreement pursuant to Missouri law because Louisiana law applies and prohibits enforcement of the non-competition service agreement; (2) finding that payment of salary and continued employment were sufficient consideration for the non-competition service agreement; and (3) granting injunctive relief enjoining Tucker where Ashland had no legitimate business interest to protect. We affirm.

Our review shall be in accordance with the well established standard set forth in Murphy v. CarrOn, 536 S.W.2d 30, 32[1] (Mo. banc 1976), i.e., the judgment will be affirmed if it is supported by substantial evidence and is not against the weight of the evidence, and the trial court did not erroneously declare or apply the law. We defer to the trial court on matters of credibility. Rule 73.01(c)(2). Further, we view the evidence in a light favorable to the judgment.

*597 Tucker had been working in Texas for KCL Fluids, Inc. (KCL) until 1984 when Ashland acquired KCL. KCL was a supplier of oil field chemicals primarily in the southern United States. KCL became a part of Ashland’s Industrial Chemicals and Solvents division (IC & S). Ashland is incorporated in Kentucky, headquartered in Ohio, and is in the business of manufacturing and selling oil related products and chemicals on a nationwide basis. Tucker entered into an employment agreement with Ashland on July 31, 1984, to continue employment with Ashland for three years, working in substantially the same capacity as he had with KCL. Tucker continued to work and reside in Texas.

This employment agreement provided for an annual base salary of $42,800 plus an annual “supplemental compensation” of $10,000. Although the agreement does not say Tucker was subject to reassignment by Ashland, Tucker testified that his understanding was that Ashland could move him anywhere. The employment agreement also provided, in pertinent part:

3. During the term of this Agreement and for a period of one (1) year thereafter, Employee shall not engage in any activity which shall be in direct or indirect conflict with the potassium chloride, custom blending of potassium chloride, and wholesale distribution of other oil field chemicals business of Ashland without prior written consent of Ashland. Further, the one (1) year restriction shall be limited to the geographic area of the states of Texas, New Mexico, Arizona, Louisiana, Kansas, Mississippi, and Oklahoma. If the scope of any restriction contained in this paragraph is too broad to permit enforcement of such restriction to its full extent, then such restriction shall be enforced to the maximum extent permitted by Law and Employee hereby consents and agrees that such scope may be judicially modified accordingly in any proceeding brought to enforce such restriction. Employee agrees that competition by him could cause irreparable injury to Ashland.

About a year after Tucker had been working for Ashland in Texas, Tucker received a call from an Ashland superior, Patrick Jayne telling him to report to St. Louis, Missouri on July 19, 1985, to hear plans for a promotion and to meet with his potential new superior, Greg Wright. Jayne told Tucker he did not know to which district he might be transferred but further details would be revealed to him in St. Louis. Tucker met Greg Wright in St. Louis who offered him a position as District Manager in the Baton Rouge district. Tucker accepted the position and then immediately went to Ashland’s headquarters in Ohio, for further negotiations and to confirm his acceptance of his promotion. He also received a pay raise of $4,200. Approximately three weeks after Tucker moved to Louisiana, the service agreement was sent to him to be signed. Testimony at trial indicated that the service agreement was a uniform agreement required to be signed by Ashland employees who were being promoted. On August 19, 1985, Tucker signed and returned the service agreement to Ashland. The service agreement in the record does not reflect Ash-land’s acceptance. However, it is not disputed that Ashland accepted the service agreement.

The August 19, 1985 service agreement provides in pertinent part:

In consideration and as a condition of my employment and the wages or salary to be paid for my services during the term thereof by Ashland Oil, Inc., and affiliated or subsidiary companies (hereinafter collectively referred to as “Ash-land”), I do hereby covenant, recognize and agree as follows:
* * * * ⅜ ⅜
10. In order to protect Ashland’s substantial time, money and effort invested in (i) training and development of its employees, (ii) research and development, (iii) technical data, (iv) commercial plans and strategies, (v) product manufacture, marketing, selling and servicing, (vi) the development of goodwill among its customers, and (vii) other legitimate business interests, I [Tucker] will not directly or indirectly, for a period of one (1) year *598 following the termination of my employment for any reason whatsoever, engage in work or any other activity of the kind performed for Ashland involving products or processes similar to the products or processes with which I worked.
I understand and agree that business solicitation and employment solicitation as described herein shall also be prohibited for one (1) year following the termination of my employment.
I agree not to solicit business from any client or customer of Ashland or any person responsible for referring business to Ashland, for any competitor of Ash-land or for my own interests if I should become a competitor of Ashland. This restriction pertaining only to clients, customers or persons or entities who refer clients or customers if I, during the course of my employment for Ashland, have had the responsibility of developing, facilitating, maintaining and/or servicing those clients, customers, or other persons or entities who refer clients or customers.

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Cite This Page — Counsel Stack

Bluebook (online)
768 S.W.2d 595, 1989 Mo. App. LEXIS 353, 1989 WL 21728, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ashland-oil-inc-v-tucker-moctapp-1989.