Barker Industries, Inc. v. Gould

553 S.E.2d 227, 146 N.C. App. 561, 2001 N.C. App. LEXIS 974
CourtCourt of Appeals of North Carolina
DecidedOctober 16, 2001
DocketCOA00-683
StatusPublished
Cited by8 cases

This text of 553 S.E.2d 227 (Barker Industries, Inc. v. Gould) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barker Industries, Inc. v. Gould, 553 S.E.2d 227, 146 N.C. App. 561, 2001 N.C. App. LEXIS 974 (N.C. Ct. App. 2001).

Opinion

CAMPBELL, Judge.

Defendants appeal from two orders of the trial court: (1) order dated 30 November 1999, enjoining defendant Robin O. Gould (“Gould”) and his company, defendant Gould Industries, Inc. (“Gould Industries”), from all operations, ordering that the business be permanently closed, and awarding both compensatory and punitive damages, and (2) order dated 26 January 2000, denying defendants’ motions for new trial, amendment of judgment, relief from judgment, and stay of enforcement of judgment.

Plaintiff Barker Industries, Inc., owned by Marc and Robert Settin, is a manufacturer of high grade, inorganic and organo-metallic chemical compounds. Plaintiff supplies its customers with high quality, high purity compounds which it has successfully researched and manufactured over the past twenty-five years. Plaintiff has also established close relationships with its suppliers to ensure quality raw materials, and has built a solid customer base, even sometimes working with its customers to tailor its products to the customers’ specific needs.

In 1993, plaintiff hired defendant Gould to perform clerical work for the company. Gould’s duties included recording customer orders *563 and placing orders for the needed supplies and raw materials. Gould was not engaged in actually manufacturing chemicals, and had no background or training in this area. Sometime before his termination in October of 1997, Gould began making copies of plaintiff’s customer, supplier, and pricing lists; compiling this information in what became known as the “Address Book.” Gould also made copies of plaintiffs “prep sheets,” which contained the precise product formulations for the chemicals plaintiff manufactured. These “prep sheets” were the result of refinements made over the years that allowed for the high purity of the products, and could only be found on Robert Settin’s password-protected computer.

After his termination, Gould began manufacturing inorganic and organo-metallic compounds in direct competition with plaintiff, using the information Gould had taken from plaintiff. Gould Industries obtained raw materials from plaintiffs suppliers, and attempted to sell its products to plaintiffs customers. Plaintiff sought to enjoin defendants’ activities, and brought suit for injunctive relief and damages.

Defendants’ first contention is that the trial court erred by not allowing defendants a second continuance in order to obtain counsel for the 11 November 1999 proceeding. We disagree.

The decision to grant or deny a continuance is subject to the trial court’s discretion, and will not be overturned absent an abuse of that discretion. State v. Call, 353 N.C. 400, 415, 545 S.E.2d 190, 200 (2001). Despite defendants’ contention, it is apparent from the record before us that defendants were fully aware their counsel had filed a motion to withdraw, that this motion had been granted by the trial court a full four months before the trial was scheduled to begin, and that the trial court had given defendants ample opportunity to obtain counsel— including a thirty day stay of the proceedings to enable defendants to retain counsel, and a one day continuance on the day of trial when defendants announced that their attorney was not able to attend court on that day. Therefore, we conclude the trial court did not abuse its discretion by refusing to grant defendants an additional continuance in order to obtain counsel.

Defendants’ next set of contentions involve the 30 November 1999 order. First, defendants argue that the injunctive relief ordered by the court against defendant Gould, permanently enjoining him from the manufacture or sale of inorganic or organo-metallic chemical compounds is over broad. In support of this argument, defendants *564 state several factors that should be considered in tailoring injunctive relief. We review each of these factors under an abuse of discretion standard. Roberts v. Madison County Realtors Ass’n, Inc., 344 N.C. 394, 399, 474 S.E.2d 783, 787 (1996) (“When equitable relief is sought, courts claim the power to grant, deny, limit, or shape that relief as a matter of discretion.”).

To begin, defendants assert that our courts are wary of prohibiting “an employee from working in his field of training even if the employee’s general skills and knowledge were acquired in the course of his employment,” citing Engineering Associates, Inc. v. Pankow, 268 N.C. 137, 139, 150 S.E.2d 56, 58 (1966), for this proposition. Gould, however, was hired by plaintiff to do clerical work. He was studying to be a certified public accountant. His “field of training” at no time included manufacturing chemicals. Gould never received any sort of training in this field, held no chemistry degrees, and was never taught these skills by plaintiff during his employment. Accordingly, we hold the trial court did not prevent defendant Gould from working in his “field of training,” and therefore did not abuse its discretion.

Next, defendants assert that the injunctive relief granted by the trial court was too broad, and that instead, the relief should be “limited to specific items or information and not be a widely encompassing order.” Defendants’ apparent objection here, is that the order permanently enjoined Gould from “the manufacture or sale of inorganic or organo-metallic chemical compounds” without listing specific compounds, thereby effectively enjoining defendants from the manufacture of any such compound. Defendants contend a much more reasonable approach would have been to enjoin the manufacture of the twenty-seven compounds listed on the “prep sheets” obtained by Gould. Again, we find no abuse of discretion on behalf of the trial court.

Defendants here are solely responsible for their plight by actively ignoring the terms of the preliminary injunction against them. In the preliminary injunction, the trial court stated: “Defendants Robin 0. Gould and Gould Industries, Inc. shall not manufacture or sell any of the specialized chemical compounds whose formulation information was taken by Gould in the form of Prep Sheets. Attached as Exhibit A hereto is a list of those products.” Exhibit A goes on to list the twenty-seven specific chemicals that defendants were prohibited from manufacturing. Then the trial court further ordered that: “Defendants Robin O. Gould and Gould Industries, Inc. shall not sell other prod *565 ucts currently marketed by Barker to Barker’s customers whose identities and purchasing habits are recorded on the address book compiled by Gould. . . . Attached as Exhibit C hereto is a list of those customers.”

The trial court took great care in setting out the specific chemicals, customers, and suppliers to which the preliminary injunction applied. However, defendants tried to evade the trial court’s order by adding trace amounts of chemicals to the compounds (which would not affect the compound’s performance), then claiming that they were not the same chemicals covered by the preliminary injunction, and by selling to affiliates of plaintiff’s customers instead of selling directly to the customers themselves.

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553 S.E.2d 227, 146 N.C. App. 561, 2001 N.C. App. LEXIS 974, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barker-industries-inc-v-gould-ncctapp-2001.