Baton Rouge Cigarette Service v. Bloomenstiel

88 So. 2d 742, 1956 La. App. LEXIS 824
CourtLouisiana Court of Appeal
DecidedJune 29, 1956
Docket4246
StatusPublished
Cited by23 cases

This text of 88 So. 2d 742 (Baton Rouge Cigarette Service v. Bloomenstiel) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baton Rouge Cigarette Service v. Bloomenstiel, 88 So. 2d 742, 1956 La. App. LEXIS 824 (La. Ct. App. 1956).

Opinion

88 So.2d 742 (1956)

BATON ROUGE CIGARETTE SERVICE, Inc.,
v.
Lester BLOOMENSTIEL.

No. 4246.

Court of Appeal of Louisiana, First Circuit.

June 29, 1956.

*743 Taylor, Porter, Brooks, Fuller & Phillips, Baton Rouge, for appellant.

Breazeale, Sachse & Wilson, Baton Rouge, for appellee.

LOTTINGER, Judge.

Petitioner, Baton Rouge Cigarette Service, Inc., is the applicant in rule for a preliminary injunction against its former employee, Lester Bloomenstiel, praying that defendant show cause why a preliminary injunction should not issue restraining him from using confidential information obtained from applicant's records in the solicitation and enticement of customers away from the petitioner. Petitioner further prayed that after due proceedings the rule be made absolute and a permanent injunction issue. The Lower Court rendered judgment in favor of defendant, and dismissed the proceedings. Petitioner filed a devolutive appeal.

The facts show that Lester Bloomenstiel was formerly the Manager of the Baton Rouge Cigarette Service, Inc., a Louisiana corporation domiciled in the Parish of East Baton Rouge, Louisiana, and engaged in the business of distributing and selling cigarettes through automatic vending machines. He served as manager of the company from the date the business was incorporated until he resigned on November 11, 1955, a period of about seven years. All of the capital stock of the corporation is owned by interests represented by Mr. Thomas A. Vaughn, of New Orleans, who exercised general supervision over the operations of the business. Mr. Bloomenstiel was solely responsible, as the manager of the company, for the general conduct of the corporation's business, including the solicitation of customers, the determination of commissions, and the maintenance and service of the machines installed.

A copy of Bloomenstiel's employment with the company was introduced into evidence. Said contract provides, in part, as follows:

"Sixth: Bloomenstiel agrees that for a period of five (5) years after the termination of his employment hereunder, however such termination may come about, he will not, directly or indirectly, be engaged or interested as owner, partner, stockholder, trustee, employee, agent or in any other capacity in the business of owning, selling, *744 leasing, operating or in any manner dealing in or with cigarette vending machines in East Baton Rouge Parish in the State of Louisiana."

On November 10, 1955, Bloomenstiel resigned his position with the company. Although he offered a two weeks' notice, Mr. Vaughn told him that he could leave immediately, and Mr. Bloomenstiel left on November 11, 1955. The following day the following notice was published in the State Times, a daily newspaper published in Baton Rouge:

"To My Friends and Customers:

"I am no longer connected with the Baton Rouge Cigarette Service. My future plans anticipate the possible establishment of my own business.
"Sincerely, Lester Bloomenstiel Home Phone WA 1-5628"

Within two weeks following his resignation, approximately 36 of Baton Rouge Cigarette Service's best customers had cancelled their contracts with petitioner and had engaged vending machines owned and operated by a company formed and owned in part by Bloomenstiel.

Bloomenstiel admitted talking to two and possibly three customers of the petitioner company while he was still in its employ, relative to his new business venture, and further admitted that, previous to resigning, he ordered approximately 150 cigarette vending machines for his own use.

The petitioner introduced evidence to the effect that, prior to his leaving the employ of petitioner, Bloomenstiel went through their records and made a list of their best customers with the intention of enticing these customers away from petitioner after he had opened his own business. While Mr. Bloomenstiel admitted making many lists in his job with petitioner, he claims that these lists were made for the purpose of mailing checks to customers, repairing defective vending machines, calling on customers whose sales had fallen off, etc. He admits that he did make a list of petitioner's customers from memory after he had left their employment, however, petitioner failed to prove that such a list was made prior to his leaving his job with petitioner.

Petitioner filed this suit to enjoin and prohibit the defendant from soliciting and enticing petitioner's customers and from using or employing any of the confidential information obtained from the books and records of petitioner and any of the lists of petitioner's customers, copies of business records or any other trade secret belonging to petitioner secured by Bloomenstiel while in the employ of petitioner. The Lower Court rejected the petitioner's demands and dismissed the suit. Petitioner has taken a devolutive appeal.

There is no question in our minds that Paragraph 6 of the employment contract which is hereinabove quoted is absolutely null and void and against the public policy of our state. Act 133 of 1934, now LSA-R.S. 23:921, provides:

"No employer shall require or direct any employee to enter into any contract whereby the employee agrees not to engage in any competing business for himself, or as the employee of another, upon the termination of his contract of employment with such employer, and all such contracts, or provisions thereof containing such agreement shall be null and unenforceable in any court."

Prior to the enactment of the above quoted statute, the Supreme Court in the case of Jones v. Ernst & Ernst, 172 La. 406, 134 So. 375, 376, said:

"* * * We know of no law, and have been referred to none, which prohibited them at the end of any monthly period from leaving defendant's employ. On the contrary, we think that in consonance with the spirit of free labor they ought to be maintained in their right to do so. Certainly no *745 action lies against plaintiff merely because he chose to employ them after they had left defendant's service. And this is so, even though plaintiff and defendant's former employees during their term of employment planned to engage in a competing business at the expiration thereof. Every person has the right to better his condition if he can lawfully do so." (Italics ours.)

The public policy of the state, as expressed in said statute, has been upheld by this Court in Nelson v. Associated Branch Pilots, 63 So.2d 437, decided by this Court, and in Martin-Parry Corp. v. New Orleans Fire Dection Service, 221 La. 677, 60 So.2d 83, 84.

Both parties cited the Martin-Parry Corp. case, the facts of which are not identical to the ones presently before us. In that case, the contract of employment provided:

"`* * * for a period of two (2) years after the termination hereof, disturb, hire, entice away, or in any other manner persuade any employee or dealer of the Company to discontinue his relation to the Company as an employee or dealer, as the case may be".

In discussing other cases, Justice McCaleb, who was the organ of the Court, said:

"* * * the employees agreed that, upon the termination of their employment, they would not engage in a business in competition with that of their employer, either for themselves or as employees of others, for a specified time.

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Bluebook (online)
88 So. 2d 742, 1956 La. App. LEXIS 824, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baton-rouge-cigarette-service-v-bloomenstiel-lactapp-1956.