Cardinal Health Staffing Network, Inc. v. Jay Bowen

CourtCourt of Appeals of Texas
DecidedApril 3, 2003
Docket01-02-00769-CV
StatusPublished

This text of Cardinal Health Staffing Network, Inc. v. Jay Bowen (Cardinal Health Staffing Network, Inc. v. Jay Bowen) 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
Cardinal Health Staffing Network, Inc. v. Jay Bowen, (Tex. Ct. App. 2003).

Opinion

Opinion issued April 3, 2003




In The

Court of Appeals

For The

First District of Texas





NO. 01-02-00769-CV





CARDINAL HEALTH STAFFING NETWORK, INC., Appellant


V.


JAY BOWEN, Appellee





On Appeal from the 164th District Court

Harris County, Texas

Trial Court Cause No. 2002-11602





O P I N I O N


          Appellant, Cardinal Health Staffing Network, Inc. (“Cardinal”), appeals from the denial of its application for a temporary injunction in its suit to enforce a non-competition covenant and for unfair competition and misappropriation of trade secrets, among other things. See Tex. Civ. Prac. & Rem. Code Ann. § 51.014(a)(4) (Vernon Supp. 2003). We determine (1) whether the trial court erred in implicitly finding that Cardinal would not suffer irreparable injury pending trial and, alternatively, (2) whether Cardinal had to show that it had an irreparable injury for which it had no adequate legal remedy. We affirm.

Background

          Professional Health-Care Resources, Inc. (“PHR”) was in the interim-pharmacy-staffing business. PHR provided pharmacists and pharmacy technicians to hospital and retail pharmacies on a temporary basis. The PHR employees who filled vacancies for pharmacists and technicians at client pharmacies were called “schedulers.” Appellee, Jay Bowen, started working with PHR as a temporary pharmacy technician, but he became a PHR scheduler on January 30, 2000.

          On his first day of work as a scheduler, Bowen signed PHR’s employment agreement, which contained non-disclosure and non-competition covenants. The non-competition covenant provided in pertinent part that if Bowen were to leave PHR, he would not, directly or indirectly, (1) call on, solicit, or take away any of PHR’s clients or prospective clients on whom he had called or with whom he had became acquainted during his employment with PHR or (2) engage in, manage, operate, join, control, or own an interest in any business that was competing with PHR when he left PHR or that would come into “direct” competition with PHR during the year after he left. The covenant precluded the defined competition anywhere in Texas east of San Angelo for one year after Bowen left PHR, unless PHR and its affiliates had ceased doing business in a particular city or county or in the State.

          On November 15, 2001, Cardinal purchased all of PHR’s stock. Bowen did not wish to work for Cardinal. Some time that same month, Bowen began discussing employment opportunities with CompleteRx, a pharmacy-management company that Bowen had serviced while working at PHR. CompleteRx offered Bowen a job at the end of November 2001, and Bowen accepted it shortly thereafter. Bowen left Cardinal on January 24, 2002. About the time that Bowan began work at CompleteRx, that company started an interim-pharmacy-staffing business. Bowen worked as a scheduler for CompleteRx.

          The parties disputed whether the PHR non-competition covenant bound Bowen or was valid, whether Bowen was violating that covenant by working for CompleteRx as a scheduler, and whether Bowen was using any of Cardinal’s confidential information at CompleteRx.

          Cardinal sued Bowen on March 5, 2002, claiming breach of the non-competition and non-disclosure covenants, tortious interference with Cardinal’s business relations with its employees, theft of trade secrets, breach of the duty of loyalty, fraud, and unfair competition and requested temporary and permanent injunctive relief and actual and punitive damages. Bowen counterclaimed for, among other things, a declaration that the non-competition covenant was void and for damages for malicious prosecution and abuse of process.

          The trial court heard Cardinal’s motion for temporary injunction on June 25, 2002. On July 3, 2002, the trial court denied Cardinal’s temporary-injunction motion without stating reasons.

Cardinal’s Challenges

          In three issues, Cardinal argues that the trial court erred by not issuing a temporary injunction to enforce the non-competition covenant and to restrain Bowen either from working in the same field as Cardinal or from soliciting or doing business with customers and clients with whom Bowen had worked at Cardinal.

Standard of Review

          We may not review the merits of the applicant’s case in an interlocutory appeal from a temporary-injunction order. Tel. Equip. Network, Inc. v. TA/Westchase Place, Ltd., 80 S.W.3d 601, 607 (Tex. App.—Houston [1st Dist.] 2002, no pet.). Whether to grant or deny a temporary injunction lies within the trial court’s sound discretion. See Surko Enters., Inc. v. Borg-Warner Acceptance Corp., 782 S.W.2d 223, 224 (Tex. App.—Houston [1st Dist.] 1989, no writ). “We view the evidence in the light most favorable to the trial court’s order and indulge every reasonable inference in its favor.” Amalgamated Acme Affiliates, Inc. v. Minton, 33 S.W.3d 387, 392 (Tex. App.—Austin 2000, no pet.); accord Tel. Equip. Network, 80 S.W.3d at 607.

Rules Pertaining to Temporary Injunctions Generally

          Injunction proceedings are governed by Civil Practice and Remedies Code chapter 65. See Tex. Civ. Prac. & Rem. Code Ann. §§ 65.001-65.045 (Vernon 1997 & Supp. 2003). Chapter 65 provides, in pertinent part, that “[t]he principles governing courts of equity govern injunction proceedings if not in conflict with this chapter or other law.” Id. § 65.001. The chapter further provides that a writ of injunction may be granted if, among other grounds not applicable here, “the applicant is entitled to a writ of injunction under the principles of equity and the statutes of this state relating to injunctions.” Id. § 65.011(3). The Rules of Civil Procedure similarly provide, “The principles, practice and procedure governing courts of equity shall govern proceedings in injunctions when the same are not in conflict with these rules or the provisions of the statutes.” Tex. R. Civ. P. 693.

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