Charles Davis & Associates, Inc. v. Nike, Inc.

756 F. Supp. 416, 1991 U.S. Dist. LEXIS 1330, 1991 WL 10913
CourtDistrict Court, E.D. Missouri
DecidedFebruary 4, 1991
DocketNo. 89-2008-C-5
StatusPublished

This text of 756 F. Supp. 416 (Charles Davis & Associates, Inc. v. Nike, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Charles Davis & Associates, Inc. v. Nike, Inc., 756 F. Supp. 416, 1991 U.S. Dist. LEXIS 1330, 1991 WL 10913 (E.D. Mo. 1991).

Opinion

[417]*417MEMORANDUM

LIMBAUGH, District Judge.

Plaintiff Charles Davis and Associates, Inc. filed a four-count amended complaint against defendant. In Count I plaintiff alleges that defendant tortiously interfered with contractual relations between plaintiff and four of plaintiffs employees. In Count II plaintiff prays for punitive damages for the tort alleged in Count I. In Count III plaintiff alleges that defendant conspired to tortiously interfere with contractual relations between plaintiff and four of plaintiffs employees. In Count IV plaintiff prays for punitive damages for the tort alleged in Count III. This cause is before the Court on defendant’s motion for summary judgment.

Courts have repeatedly recognized that summary judgment is a harsh remedy which should be granted only when the moving party has established his right to judgment with such clarity as not to give rise to controversy. New England Mut. Life Ins. Co. v. Null, 554 F.2d 896, 901 (8th Cir.1977). Summary judgment motions, however, “can be a tool of great utility in removing factually insubstantial cases from crowded dockets, freeing courts’ trial time for those that really do raise genuine issues of material fact.” Mt. Pleasant v. Associated Electric Cooperative Inc., 838 F.2d 268, 273 (8th Cir.1988).

Pursuant to Fed.R.Civ.P. 56(c), a district court may grant a motion for summary judgment if all of the information before the court demonstrates that “there is no genuine issue as to material fact and the moving party is entitled to judgment as a matter of law.” Poller v. Columbia Broadcasting System, Inc., 368 U.S. 464, 467, 82 S.Ct. 486, 488, 7 L.Ed.2d 458 (1962). The burden is on the moving party. Mt. Pleasant, supra, 838 F.2d at 273. Once the moving party discharges this burden, the non-moving party must do more than show that there is some doubt as to the facts. Matsushita Electric Industrial Co. v. Zenith Radio Corp., 475 U.S. 574, 586, 106 S.Ct. 1348, 1355, 89 L.Ed.2d 538 (1986). Instead, the non-moving party bears the burden of setting forth specific facts showing that there is sufficient evidence in its favor to allow a jury to return a verdict for it. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986); Celotex Corp. v. Catrett, 477 U.S. 317, 324, 106 S.Ct. 2548, 2553, 91 L.Ed.2d 265 (1986).

In passing on a motion for summary judgment, the court must review the facts in a light most favorable to the party opposing the motion and give that party the benefit of any inferences that can logically be drawn from those facts. Buller v. Buechler, 706 F.2d 844, 846 (8th Cir.1983). The court is required to resolve all conflicts of evidence in favor of the non-moving party. Robert Johnson Grain Co. v. Chemical Interchange Co., 541 F.2d 207, 210 (8th Cir.1976). With these principles in mind, the Court turns to an examination of the facts.

Plaintiff Charles Davis & Associates is an independent sales representative. Charles Davis is the president of plaintiff.1 The Court refers to Charles Davis & Associates, Inc. and Charles Davis interchangeably as “plaintiff.” Defendant NIKE, Inc. is a corporation engaged in the business of designing, manufacturing and selling athletic footwear and apparel. In 1976 defendant selected plaintiff to act as a sales representative of defendant’s products. Between 1976 and 1981 plaintiff and defendant entered into several sales representative agreements. In 1981 plaintiff entered into a Sales Representative Agreement with defendant whereby plaintiff was granted the right to market and sell defendant’s products in Missouri, Kansas, Nebraska and Southern Illinois. The Sales Representative Agreement was terminable by either party with thirty days notice.

In 1988 plaintiff employed several members of the Davis family and four associate sales representatives (“ASRs”): Robert Logan, Thomas Logan, Rich Bulkley, and Mark Panu. Each ASR executed a con[418]*418tract with plaintiff that included a restrictive covenant prohibiting the ASRs from competing with plaintiff for a period of eighteen months after the termination of the contract with plaintiff. Each restrictive covenant stated:

For a period of eighteen (18) months from the date of

the termination of this Agreement, for any reason, or the expiration of this Agreement, the employee shall not, within the geographical limits of the State of _directly or indirectly, own, manage, operate, join, control, be employed or participate in the ownership, management, operation, or control of, or be connected in any manner with any business of the type and character of business engaged in by the Employer at the time of such termination. In addition to any other rights or remedies available to the Employer for breach of this provision, the Employer shall be entitled to enforcement by court injunction. Any or all provisions of this paragraph may be waived by written consent of Employer. The purpose and intent of this entire provision is to protect Employer from sudden disruption of its principal source of income.

On March 31,1988 defendant gave plaintiff notice that their contractual relationship would terminate on April 30, 1988. On April 1, 1988 plaintiff telephoned the four ASRs and informed them that his contract with defendant had been terminated.

Plaintiff asserts that on March 31, 1988 plaintiff received a call from Julie Demp-ster, a management level employee of defendant. During this call Ms. Dempster told plaintiff that she had heard of plaintiffs termination from Thomas Logan, one of plaintiffs ASRs.2

On April 4, 1988 Robert Logan, an ASR, contacted plaintiff and informed him that the ASRs wanted to meet with plaintiff on April 8,1988 in Columbia, Missouri. At the April 8, 1988 meeting the ASRs were asked to choose whether they wanted to resign or remain in the employ of plaintiff and attempt to rebuild plaintiffs business with other product lines. The sale of defendant’s products had been the primary source of the ASRs’ income. The ASRs elected to resign, and indicated they would be amenable to any job offer forthcoming from defendant. At the time of the April 8, 1988 meeting the ASRs had earned a total of $177,000.00 in unpaid commissions.3

On April 16, 1988 plaintiff met with defendant to discuss the terms of the termination between plaintiff and defendant. At that meeting plaintiff discussed with Scott Carey, defendant’s National Sales Manager, defendant’s employment of the ASRs. Plaintiff offered to release the ASRs from the restrictive covenants and allow them to work for defendant if defendant paid plaintiff $1,250,000.00. Defendant rejected plaintiff’s offer. On April 16, 1988 plaintiff authorized defendant to talk with the ASRs about employment with defendant but not to extend offers of employment.

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Related

Poller v. Columbia Broadcasting System, Inc.
368 U.S. 464 (Supreme Court, 1962)
Anderson v. Liberty Lobby, Inc.
477 U.S. 242 (Supreme Court, 1986)
New England Mutual Life Insurance Company v. Null
554 F.2d 896 (Eighth Circuit, 1977)
Osage Glass, Inc. v. Donovan
693 S.W.2d 71 (Supreme Court of Missouri, 1985)
Bockover v. Stemmerman
708 S.W.2d 179 (Missouri Court of Appeals, 1986)
Stegeman v. First Missouri Bank of Gasconade County
722 S.W.2d 349 (Missouri Court of Appeals, 1987)
Francisco v. Kansas City Star Co.
629 S.W.2d 524 (Missouri Court of Appeals, 1981)
Fleming v. Mercantile Bank & Trust Co.
766 S.W.2d 666 (Missouri Court of Appeals, 1989)
Buller v. Buechler
706 F.2d 844 (Eighth Circuit, 1983)

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Bluebook (online)
756 F. Supp. 416, 1991 U.S. Dist. LEXIS 1330, 1991 WL 10913, Counsel Stack Legal Research, https://law.counselstack.com/opinion/charles-davis-associates-inc-v-nike-inc-moed-1991.