Butler v. Arrow Mirror & Glass, Inc.

51 S.W.3d 787, 2001 WL 699935
CourtCourt of Appeals of Texas
DecidedAugust 2, 2001
Docket01-00-00445-CV
StatusPublished
Cited by128 cases

This text of 51 S.W.3d 787 (Butler v. Arrow Mirror & Glass, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Butler v. Arrow Mirror & Glass, Inc., 51 S.W.3d 787, 2001 WL 699935 (Tex. Ct. App. 2001).

Opinion

OPINION

JENNINGS, Justice.

Appellants, William Butler (Butler) and ReGlaze, Incorporated (ReGlaze), appeal the trial court’s final judgment and issuance of a permanent injunction enjoining them from doing business in Harris and Fort Bend Counties pursuant to a covenant not to compete clause in Butler’s previous employment agreement with ap-pellee, Arrow Mirror and Glass, Incorporated (Arrow), Butler’s former employer. In three points of error, Butler and Re-Glaze claim (1) the covenant not to compete is unenforceable as a matter of law, (2) the issuance of the permanent injunction was improper, and (3) the court erred in enjoining ReGlaze because it was not a party to the covenant not to compete. Arrow has filed three cross-points claiming the trial court erred by (1) narrowing the geographical scope of the covenant not to compete, (2) failing to award Arrow damages, and (3) failing to award Arrow its attorney’s fees. We affirm in part and reverse and render in part.

Facts and Procedural History

Arrow’s primary business is making and installing shower stalls and mirrors for new home builders, comprising 90 percent of its revenues. Arrow also offers reglaz-ing 1 services independently and as an incentive for builders to purchase a package of services, comprising the remaining 10 percent of its revenues.

On April 6, 1998, Arrow hired Butler as its Operations Manager. His primary job responsibilities were to supervise fabrication of mirrors and stalls in the fabrication shop, purchase materials for inventory, and oversee the dispatch office which handled customer service issues that arose at the building sites. Prior to working for Arrow, Butler had no experience in the glass business.

Butler’s employment agreement with Arrow contained a post-termination non-competition clause restricting Butler from engaging in “the same or similar” type of business for a period of two years after leaving Arrow in seven counties within the Houston metropolitan area and in any other area where Arrow began doing business during the term of Butler’s employment.

Butler resigned from Arrow on June 28, 1999. In August of 1999, he started his own business, ReGlaze, which was incorporated under Texas law. 2 ReGlaze, as its name implies, focused solely on providing reglazing services for new home builders. On August 13, 1999, Arrow sent a letter to Butler requesting that he “honor the non-compete covenant which [he] voluntarily entered into with Arrow and cease all glass related activities which would result in [his] breaching the non-compete covenant.” Butler continued to operate his reglazing business.

At the end of August, Arrow filed this lawsuit against Butler and ReGlaze, seeking injunctive relief and damages for Butler’s breach of the covenant not to compete. Butler and ReGlaze answered with a general denial and a verified denial claiming failure of consideration.

*791 Following a bench trial 3 and post-trial hearings, the trial court reformed the covenant not to compete and issued a permanent injunction enjoining Butler and Re-Glaze as follows:

[Butler] and [ReGlaze] are enjoined from directly or indirectly, either as an employee, officer, director, consultant^] agent, principal, partner, owner, or in any other individual or representative capacity, engaging or participating in selling and/or installing mirrors and glass products in new residential construction in Harris, and Fort Bend, Counties, Texas, for a period ending on June 28, 2001....

(Emphasis added.) The court made the following findings of fact and conclusions of law:

1.Findings of fact:
1. William Butler failed to comply with the terms of his contract with Arrow.
2. The non competition agreement is ancillary to or part of an otherwise enforceable agreement.
3. The limitations of the non competition agreement as to time and scope of activity to be restrained, are reasonable and do not impose a greater restraint than is necessary to protect the goodwill or other business interest of the promisee, Arrow.
4. The limitations of the non competition agreement as to geographical area, once reformed to include only Harris and Fort Bend Counties, Texas, are reasonable and do not impose a greater restraint than is necessary to protect the goodwill or other business interest of the prom-isee, Arrow.
5.The amounts of attorney’s fees stipulated to by the parties are usual, customary, and reasonable.
2.Conclusions of law:
1. As reformed, the non competition agreement is enforceable.
2. Arrow did not prove its lost profits by competent evidence and with reasonable certainty.
3. Since Arrow did not adequately prove its lost profits, its claims for damages under its breach of contract, conversion, and tortious interference theories are denied.
4. Because Arrow did not adequately prove a pecuniary loss, it is not entitled to recover its attorney’s fees.

Butler and ReGlaze appeal from the issuance of the permanent injunction. Arrow, by cross-appeal, challenges the reformation of the covenant not to compete and the portion of the judgment denying it damages and attorney’s fees.

Standard of Review

The decision to grant or deny a permanent injunction is ordinarily within the sound discretion of the trial court if a bench trial has been conducted, and appellate review of the trial court’s action is limited to the question of whether such action constituted a clear abuse of discretion. Crain v. Unauthorized Practice of Law Committee of the Supreme Court of Texas, 11 S.W.3d 328, 332 (TexApp.—Houston [1st Dist.] 1999, pet. denied). An abuse of discretion occurs if the trial court (1) acts arbitrarily and unreasonably, without reference to guiding rules or principles or (2) misapplies the law to the established facts of the case. Baywood Country Club v. Estep, 929 S.W.2d 532, 535 (Tex.App.— *792 Houston [1st Dist.] 1996, writ denied). An abuse of discretion does not exist if the trial court heard conflicting evidence, and evidence appears in the record that reasonably supports the trial court’s decision. CRC-Evans Pipeline Int’l, Inc. v. Myers, 927 S.W.2d 259, 262 (Tex.App.—Houston [1st Dist.] 1996, no writ). We may not substitute our judgment for that of the trial court. Myers, 927 S.W.2d at 262.

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Cite This Page — Counsel Stack

Bluebook (online)
51 S.W.3d 787, 2001 WL 699935, Counsel Stack Legal Research, https://law.counselstack.com/opinion/butler-v-arrow-mirror-glass-inc-texapp-2001.