E. L. Conwell & Co. v. Gutberlet

298 F. Supp. 623, 1969 U.S. Dist. LEXIS 8988
CourtDistrict Court, D. Maryland
DecidedApril 2, 1969
DocketCiv. A. No. 19965
StatusPublished
Cited by4 cases

This text of 298 F. Supp. 623 (E. L. Conwell & Co. v. Gutberlet) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
E. L. Conwell & Co. v. Gutberlet, 298 F. Supp. 623, 1969 U.S. Dist. LEXIS 8988 (D. Md. 1969).

Opinion

WATKINS, District Judge.

E. L. Conwell & Company, a Delaware corporation (hereinafter Plaintiff) sued Charles H. Gutberlet, a citizen of Maryland (hereinafter Gutberlet) and The Arundel Corporation, a Maryland corporation (hereinafter Arundel) in a diversity case, seeking injunctive relief against both Gutberlet and Arundel, alleging the necessary jurisdictional amount. On the filing of the complaint, a show cause order was issued, to which an answer was duly filed. Pretrial memoranda were filed by the parties; the case was heard on the merits "and orally argued; and post-trial memoranda have been filed. There is little dispute as to the facts, which the court finds as follows:

FINDINGS OF FACT

Plaintiff has been continuously engaged in the field of engineering inspection and testing of construction materials since 1894, with accounts throughout the United States. The Materials Division of Arundel produces and sells sand, gravel and other aggregates, and produces [625]*625ready-mixed concrete for sale. For over thirty years Arundel has contracted with Plaintiff for the testing of aggregates going into concrete, the certification of such tests, and the design and certification of mix formulas.1 2Tests were made at Arundel concrete plants. The most recent contract was in the form of a letter agreement dated January 17, 1967, which in accordance with its provisions was terminated as of December 1, 1968 by letter from Arundel dated May 27, 1968.

Before the agreement of January 17, 1967, Arundel had become dissatisfied with Plaintiff’s overall operation, not from a technical standpoint, but specifically as to the office management of Plaintiff’s Baltimore office. Arundel requested the replacement of Plaintiff’s Baltimore manager (Barvir) and suggested the employment of Gutberlet. He had attended, but not been graduated from, Drexel Institute of Technology; had received the degree of Bachelor of Science in Civil Engineering from Villanova; attended Johns Hopkins University Graduate School part-time for one and one-half years taking courses in structural analysis; went to work for The Glenn L. Martin Company in June 1955, working for two and one-half years as a stress engineer analyzing aircraft metals; worked for J. E. Greiner & Company for two years and two months as a bridge design engineer; was self-employed from February 1, 1961 to December 14, 1964 as a consulting engineer, dealing primarily with buildings; was then a structural design engineer for Portland Cement Association, in “a promotional type of job where you call on architects, engineers, and owners, and try to show them the advantages of designing in concrete”; and on May 1, 1966 was employed by Plaintiff as Manager of its Baltimore branch laboratory. The employment agreement, signed by Gutberlet, read in pertinent part as follows;

“Due to the nature of this position, we ask that you agree to the following.
(1) Should your employment with us be terminated for any reason you will not accept employment with a competitor or client of ours nor engage in a competing business venture within 150 miles of Baltimore for a period of three years after the termination.
(2) You will not engage in outside employment while in our employ; all business to be conducted through the firm.”

Prior to this time Gutberlet had had “no experience at all working with cement, or cement products, or concrete products * * *”2; that is, while he had designed things to be made out of concrete, he had done no professional sampling, testing or inspecting of cement, nor supervised the loading of tested and approved cement, or any “complete concrete materials testing, mix design, evaluation-quality control”, or checked “the continuous batch plant supervising and field testing and control.” He denied learning these things before or after coming with Plaintiff, stating that his duties for Plaintiff were to “manage their Baltimore branch office in a managerial position and part of the statement was that I did not have to have a technical background to do this work”; and that it was not intended that he should be taught, and he was not taught, procedures peculiar to Plaintiff’s operation. He learned nothing at all about specialized material testing; and nothing that was peculiar to Plaintiff’s business. He was not taught, and did not learn, the testing, sampling and interpretation [626]*626of results with respect to materials going into concrete.

When he was first employed by Plaintiff, Gutberlet asked if he could complete some structural engineering design work on which he was then working. He was given the requested permission and was told to try to get similar work for Plaintiff. At the end of his employment, Gutberlet spent about twenty-five per cent of his time on this activity, some of which was then pending, uncompleted.

Shortly after he was employed, Plaintiff’s Vice President and General Manager (Capper) spent one day with Gutberlet discussing operations generally; staff; methods; the Philadelphia laboratory, so that Gutberlet would know where to go for help. From time to time 3 Gutberlet would telephone Capper, mostly with respect to procedures to be followed by the men working under him. For the most part these inquiries would be answered by referring Gutberlet to the appropriate portions of standard manuals, such as the standards of the American Society for Testing Materials.4

Capper had since 1966 been concerned that Arundel might set up its own testing laboratory. Shortly after the employment by Arundel of a new Vice President and General Manager of its Materials Division in January 1968 (Mallon), Mallon appointed a task group of Arundel employees to investigate Arundel’s quality control requirements. Part of this investigation included (to Plaintiff’s knowledge) the observation of Plaintiff’s technicians, and Plaintiff’s time schedules. A written report was prepared in March 1968. It considered three possibilities — “A”—Arundel doing aggregate testing and field concrete testing, an outside company doing the concrete testing and certification of all materials; “B” — a complete testing service for both concrete and aggregates, plus certification, by an outside company; and “C” — Arundel handling all testing, with the outside company furnishing certifications. The report in general recommended that Arundel set up its own controls laboratory, which would include the concrete testing (but not certification) formerly performed by Plaintiff. Apparently a copy of this report was given to Plaintiff at about the time the report was prepared. Definitely Plaintiff knew about the nature of the task group’s study, since on February 7, 1968, Plaintiff submitted to Arundel a written estimate of costs for various combinations of services, along the lines of, but somewhat different from, those incorporated in the task group report.

On March 5, 1968, Gutberlet wrote to Arundel advising of certain changes in personnel for the purpose of staffing the quality control program to serve Arundel. It was stated that Ronald T. Lange would be in charge of the operation, with William J. Whitecotton as his assistant.

Lange had been employed by Plaintiff for about fifteen years, as a “concrete inspector” doing quality control work, checking concrete aggregates and mix designs. Some of the procedures he learned, including “short cuts”, were taught him by Plaintiff; most he taught himself.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Tabs Associates, Inc. v. Brohawn
475 A.2d 1203 (Court of Special Appeals of Maryland, 1984)
Food Fair Stores, Inc. v. Greeley
285 A.2d 632 (Court of Appeals of Maryland, 1972)

Cite This Page — Counsel Stack

Bluebook (online)
298 F. Supp. 623, 1969 U.S. Dist. LEXIS 8988, Counsel Stack Legal Research, https://law.counselstack.com/opinion/e-l-conwell-co-v-gutberlet-mdd-1969.