First Page v. Network Paging Corp.

628 So. 2d 130, 1993 WL 492597
CourtLouisiana Court of Appeal
DecidedNovember 30, 1993
Docket93-CA-0030
StatusPublished
Cited by10 cases

This text of 628 So. 2d 130 (First Page v. Network Paging Corp.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First Page v. Network Paging Corp., 628 So. 2d 130, 1993 WL 492597 (La. Ct. App. 1993).

Opinion

628 So.2d 130 (1993)

FIRST PAGE OPERATING UNDER THE NAME AND CORPORATE ENTITY, GROOME ENTERPRISES, INC.
v.
NETWORK PAGING CORPORATION, William T. King, Larry Boykin, Keri Marengo, James Battaglia and Dennis Hayes.

No. 93-CA-0030.

Court of Appeal of Louisiana, Fourth Circuit.

November 30, 1993.

*131 Sidney D. Meeks, Alexander M. McIntyre, Jr., Abbott & Meeks, New Orleans, for defendants/appellants.

Henry W. Kinney, III, Suzanne E. Ecuyer, New Orleans, for plaintiff/appellee.

Before CIACCIO and WALTZER, JJ., and JAMES C. GULOTTA, J. Pro. Tem.

WALTZER, Judge.

Defendants/appellants, Network Paging Corporation ("Network"), Larry Boykin, James Battaglia and Dennis Hayes, appeal from a judgment of the Civil District Court for the Parish of Orleans entered upon a jury verdict awarding plaintiff, First Page Operating Under the Name and the Corporate Entity, Groome Enterprises, Inc. (sic) ("Groome") the sum of $125,000 in damages and $41,250 in attorneys' fees; and from that Court's judgment denying defendants' motions for judgment notwithstanding the verdict, new trial or remittitur. The jury found in favor of the remaining defendants, Ray Russenberger and William King.

The individual appellants had been employed by Groome, a provider of radio paging services in the Greater New Orleans area. *132 As a condition of employment, they entered into non-compete contracts furnished by Groome and containing provisions which, inter alia, sought to prohibit certain activities by employees once their employment relationships ended. These activities included engaging in competition with Groome, soliciting Groome's customers and disclosing confidential information. Groome claimed that the individual appellants and William King, also a former Groome employee, left Groome and conspired with Ray Russenberger, Network's President, to commit unfair trade practices by using confidential information to obtain certain of Groome's accounts.

Groome admits that the non-competition agreements are unenforceable, but argues for the enforceability of the provisions against disclosure of confidential information contained in those contracts. Groome contends that the defendants Russenberger, King, Hayes, Boykin and Battaglia violated the Louisiana Unfair Trade Practices and Consumer Protection Act ("Act") (LSA-R.S. 51:1401-1405). Copies of Boykin's and Hayes' non-compete contracts, with the anti-competition language intact, were submitted to the jury, together with testimony (contradicted by Battaglia but apparently accepted by the jury) that Battaglia had executed a contract identical in those provisions which was not available for introduction. Russenberger and King, who had not executed non-competition contracts, were exonerated by the jury, and that finding was not appealed. The only individuals cast in judgment were those who had entered into restrictive contracts with Groome.

In February, 1989, Groome and Network were engaged in competing paging businesses operating in the New Orleans area. Groome employed a sales staff of six to eight during the year, maintained with a turnover of sixty-four salesmen. Network employed four salesmen in its New Orleans office, but provided paging coverage from Galveston and Houston, Texas, to the Florida panhandle, and operated its main office in Pensacola, Florida. On February 15, 1989, William King left his position as Groome's sales manager, and shortly thereafter became a member of Network's sales force. It is at this point that the appellants' activities of which Groome complains begin.

DENNIS HAYES

Dennis Hayes received no specialized training from Groome, nor was he advertised individually as the salesman to be seen for Groome's products. Hayes left Groome's employ on 12 July 1989, following nearly two years as a salesman. There is no evidence of any activity adverse to Groome during that term of employment. There is no evidence that Hayes took any customer lists or lead sheets with him when he left Groome, or that he left with any other information except that contained in his own memory.

Groome alleges that after joining Network's sales force, Hayes solicited Groome client Scianna Ice Company, a Bogalusa firm having one pager. Hayes offered Scianna the wider paging service area provided by Network, and succeeded in signing the firm. No evidence was offered that Hayes had taken from Groome any confidential documents concerning Scianna.

Groome also claims that Hayes improperly brought the Hibernia National Bank account to Network. Viewing the evidence in the light most favorable to Groome, we find no conduct that constitutes an unfair trade practice. While Hayes, on a lead from his mother, who headed the Bank's marketing staff, had called on Hibernia approximately five months before leaving Groome, Hibernia was never signed as a Groome customer; the testimony is uncontroverted that this failure to sign Hibernia resulted from Groome's inability to provide the Bank's required coverage. In brief, Groome alleges Hayes used confidential information in this solicitation, but failed to provide any evidence of such information.

Hayes' solicitation of Groome customer First Federal Savings and Loan likewise does not rise to the status of unfair trade practice, there being no evidence of the use of confidential information or trade secrets in the solicitation or servicing of the account. There, the call was initiated after Hayes began working for Network, and was made through the efforts of Hayes' wife, a First Federal employee, who had heard her boss express interest in pricing pagers.

*133 Viewing the evidence most favorably to plaintiff, the verdict rendered against Hayes is unsupported by evidence of anything more than use of his memory, experience and personal and family contacts to solicit customers for his new employer.

JAMES BATTAGLIA

James Battaglia received no specialized training from Groome, nor was he advertised individually as the salesman to be seen for Groome's products. He was employed by Groome for six months, whereupon he left Groome and within two weeks was hired as a Network salesman. There is no evidence that Battaglia took any customer lists or lead sheets with him when he left Groome, or that he left with any other information except that contained in his own memory.

Perhaps the jury accepted the evidence, contradicted by Battaglia's testimony, that he attempted to remove from Groome's office a stack of papers that could have included sales leads. The evidence is uncontroverted, however, that the attempted removal (if it occurred, and if the stack of papers included confidential information) was unsuccessful. Groome's office personnel testified without exception that the customer list, the only information Groome designated as confidential, remained under Groome's control, under lock and key, and was not removed from Groome's office by any of the appellants.

Battaglia was also accused of having deceived a Groome customer, Business Sound, into believing that it was still doing business with Groome when, in fact, the business had been moved to Network. The evidence is uncontroverted that Battaglia, while employed by Groome, received a service complaint from Business Sound's agent, Ms. Ulicini-Adams. After moving to Network, Battaglia presented Ms. Ulicini-Adams a new contract naming Network as Business Sound's service company, and another Network employee gave her five new pagers bearing the Network logo and removed Ulicini-Adams' five pagers bearing Groome's logo. For five months, Ms.

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Cite This Page — Counsel Stack

Bluebook (online)
628 So. 2d 130, 1993 WL 492597, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-page-v-network-paging-corp-lactapp-1993.