Conviser v. J. C. Brownstone & Co.

209 A.D. 584, 205 N.Y.S. 82, 1924 N.Y. App. Div. LEXIS 8686
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMay 9, 1924
StatusPublished
Cited by14 cases

This text of 209 A.D. 584 (Conviser v. J. C. Brownstone & Co.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Conviser v. J. C. Brownstone & Co., 209 A.D. 584, 205 N.Y.S. 82, 1924 N.Y. App. Div. LEXIS 8686 (N.Y. Ct. App. 1924).

Opinion

Kelly, P. J.:

Plaintiff brought this action to obtain an injunction restraining defendants from making use of a list of plaintiff’s customers which, it was alleged, was dishonestly obtained from defendant Clark, one of plaintiff’s clerks, and in the amended complaint plaintiff asked that defendants Brownstone & Company, Day Company and Brownstone individually be compelled to account for all sales made to plaintiff’s customers by means of his records and that they be declared trustees ex maleficio for the benefit of plaintiff for all profits accruing to said defendants by reason of the wrongful use of plaintiff’s property. During the course of the trial the complaint was amended so as to demand damages measured by the profits which would have come to plaintiff from the sales concededly made by defendants to plaintiff’s customers, without reference to whether defendants profited from such sales, and this was the measure of damages applied by the learned trial justice. He found as matter of fact that the sales made by defendants to plaintiff’s customers by reason of the unlawful use of plaintiff’s list aggregated $3,798.69, and that plaintiff could have transacted this business in addition to its other business without increased expense. He found that plaintiff’s profit on such business would have been fifty per cent, or one-half of the total sales, to wit, $1,899.34, and deducting two per cent for bad accounts he awarded plaintiff a judgment for $1,823.37 net damages in addition to injunctive relief.

The judgment in addition to enjoining the use of the stolen fist of customers enjoins defendants permanently from in any manner or form “ soliciting, circularizing or canvassing ” any business from any of plaintiff’s customers whose names appear on the list so wrongfully obtained and defendants are ordered to surrender the list to plaintiff.

Plaintiff for a number of years has conducted in Brooklyn the business of selling clothing to men and women on the installment plan under the name of the “ Uneeda Credit Clothing Company,” and as found by the trial court has built up a wide and prosperous business.” These concerns take the registry fist of the board of elections and send out circulars to various localities-. Some idea of the extent of the operations is found in the evidence of Vigadi, defendants’ manager, who says: “I sent out 150,000 letters, 75,000 names, and a follow-up to each one.”

The amount of business done by plaintiff in wearing apparel ” alone according to his witnesses was: 1917, $117,015.12; 1918, $175,908.48; 1919, $357,115.67; 1920, $415,872.81; 1921, $433,-866.92; 1922, $509,609.55.

[586]*586The sending out of the plaintiff’s circulars was in charge of a man named John Clark, one of the defendants, who does not answer, and defendant Ralph Vigadi. Prior to 1920 Mr. Vigadi had been with plaintiff for some three and one-half to four years, finally becoming assistant manager and sole credit manager.

The defendant W. A. Day Company was engaged in the same line of business. The defendant J. C. Brownstone Co. was interested as owner through stock control of a chain of such stores throughout the United States. Mr. J. C. Brownstone and the Brownstone Company controlled the Day Company and Mr. Brownstone was the president of both companies.

Up to 1920 the Day Company “ had not yet invaded the Brooklyn field,” but it is not surprising in view of the results above set forth that they deemed it a promising territory, and Mr. Wolf, the general manager of the Day Company, engaged Mr. Vigadi, the plaintiff’s general manager, to leave plaintiff and to go into defendants’ employ. Vigadi thought it would be a good thing for the Day Company to open up in Brooklyn, and in March, 1920, he left plaintiff’s employ and went to the Day Company. For six months he traveled about, prepared the Day store for opening, prepared advertising, engaged help and finally opened the store bn September 16, 1920.

It appears that plaintiff had a fist of customers with their names and addresses on cards. They were divided into paid up accounts,” which contained the names of customers who paid their debts promptly, and “ unpaid accounts,” which were in liquidation, but of course the paid up ” customers were the cream. There were between 7,000 and 8,000 paid up ” accounts and 35,000 of the others. The names and addresses were kept in a card index. When Vigadi went over to defendant Day Company he conceived the idea of getting hold of plaintiff’s “ paid up ” list, and he went after Clark, who had been his subordinate, and asked him to furnish him with a copy of plaintiff’s fist. They dickered over the price and finally Clark made out the list and gave it to Vigadi, receiving fifty dollars in cash. Clark says he did not think he was doing wrong, but he also testified that he would give' a hundred dollars now if I did not do it.” Mr. Vigadi entered the fifty dollars on his daily sheet of disbursements as an expense, “mailing fist $50.” The learned trial judge said: “ If this man [Vigadi] knew it as plaintiff’s fist, of course he had no business with it,” and defendants’counsel said: I agree with you.”

I do not understand that appellants question the right of the plaintiff to an injunction restraining the use of the list obtained from plaintiff’s unfaithful employee, but if they do, I think the [587]*587judgment was entirely right. It was a flagrant case of the modern methods pursued by some of our fellow-citizens whose desire for profit smothers all sense of right and decency.

The appellants say that the injunction is too broad and should be modified, and from my point of view this is the only question requiring any serious consideration.

In the first place the judgment enjoins the defendants from disclosing to any one the names or addresses of plaintiff’s customers or from using in any form or manner any list of plaintiff’s customers now or heretofore in their possession.

I do not understand that any serious objection is raised to this part of the injunction. Appellants say in their points: “ As above intimated, defendants do not object to being restrained from disclosing to anybody any names or addresses of plaintiff’s customers and from making any use of any list.”

The third provision of the judgment directs the defendants to surrender up and deliver to plaintiff any and all list , or lists of plaintiff’s customers now or heretofore in their possession and all copies thereof and memoranda therefrom. As to this appellants say in their points: “ Standing alone, this conclusion is unobjectionable, and defendants excepted only to so much of it as directed the surrender of the list to be made by defendants J. C. Brownstone and J. C. Brownstone & Co.” This is because appellants claim that Brownstone and the Brownstone Company have not “ been properly connected with the case.”

The same argument is presented by appellants where they argue that the judgment for damages should not go against Brownstone and the Brownstone Company, although it is worth noting that appellants say: “ At the outset we wish to make clear that we do not object to the fact that the injunction awarded runs also against these two defendants, although we do not think that any evidence adduced at the trial justified such a result.” Vigadi was the manager of the Day Company which the Brownstone Company controlled and of which Brownstone was the president. Brownstone was also president of the Day Company.

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Bluebook (online)
209 A.D. 584, 205 N.Y.S. 82, 1924 N.Y. App. Div. LEXIS 8686, Counsel Stack Legal Research, https://law.counselstack.com/opinion/conviser-v-j-c-brownstone-co-nyappdiv-1924.