Insurance Associates Corp. v. Hansen

782 P.2d 1230, 116 Idaho 948, 1989 Ida. LEXIS 158
CourtIdaho Supreme Court
DecidedNovember 15, 1989
Docket17106
StatusPublished
Cited by11 cases

This text of 782 P.2d 1230 (Insurance Associates Corp. v. Hansen) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Insurance Associates Corp. v. Hansen, 782 P.2d 1230, 116 Idaho 948, 1989 Ida. LEXIS 158 (Idaho 1989).

Opinions

BAKES, Chief Justice.

Plaintiff/appellant sued defendants/respondents for, inter alia, breach of the non-competition provision of an employment contract between appellant and respondent Hansen. After a bench trial, the trial judge held that the defendant Hansen had not breached the non-competition agreement, and judgment was entered for respondents. On appeal the Idaho Court of Appeals concluded that Hansen had indeed breached his employment contract; accordingly, the district court was reversed and the cause remanded so that the respective liability of each defendant could be determined on the theories advanced by the parties. On remand, the district court determined that only respondent Hansen was responsible for the breach and that damages and costs were likewise recoverable from him only. Plaintiff appellant again appeals. We affirm.

I

Defendant/respondent Craig Hansen became employed as an insurance salesman by Insurance Associates Corporation (IAC) on June 1, 1980. On February 2, 1982, Hansen and IAC entered into the written employment agreement which forms the basis for this action. The agreement contained a two-year non-competition provision and Hansen had to sign the agreement or be terminated. On October 6, 1982, IAC fired Hansen for matters unrelated to the employment agreement. Within ten days Hansen became employed by defendant/respondent Jess W. Swan Insurance Agency, Inc. (Swan), a competitor of IAC. Toward the end of October, 1982, Swan was provided a copy of the IAC/Hansen employment agreement. IAC’s legal counsel wrote Swan inquiring as to Swan’s willingness to honor the agreement’s provisions which limited Hansen’s right to contact former insurance customers. After consultation with its counsel, Swan decided that the agreement applied only to contacts who became customers of IAC subsequent to the date of the agreement, February 2, 1982. Thereafter, twenty-two customers who had purchased insurance from Hansen while he was employed by IAC transferred their business to Swan. Alleging violation of the employment agreement, and pursuant to the agreement’s provisions, IAC filed suit to collect damages equivalent to one year’s commission for each of the customers’ accounts. [950]*950Hansen’s agreement with IAC prohibited him from soliciting, for a period of two years following termination of his employment, any IAC customers with whom he had business or personal relations during the term of the written agreement. The term of the agreement was not specified, but certain of its provisions could be can-celled by either party upon 15 days’ written notice to the other party. Accordingly, the district court found that Hansen was an employee at will, subject to termination at any time. The agreement also precluded Hansen from using, without the written consent of IAC, any confidential information relating to IAC customers or accounts.

After considering the provisions in the employment contract, the district court concluded that the agreement did not limit Hansen’s right to deal with customers and use information he had developed prior to execution of the contract, but only that he could not engage in competitive practices involving the use of consumer information acquired by IAC following the execution of the agreement. The district court then analyzed the history of each of the twenty-two accounts in question. The evidence was insufficient to establish the history of two accounts, but the court held that each of the remaining twenty accounts was developed as a result of Hansen’s efforts before February 2, 1982, the date of execution of the employment agreement. Further, regarding IAC’s claim under the Idaho Trade Secrets Act, I.C. § 48-801 et seq., the court found that “the evidence does not establish that Mr. Hansen or the Jess Swan Agency used any trade secrets.” The district court therefore held for the defendants Hansen and Swan and determined there was no liability resulting from the solicitation of the twenty-two customers by Hansen while working for Swan.

On appeal, the Idaho Court of Appeals reversed, concluding that Hansen had indeed breached his employment contract. The case was remanded to the trial court for a finding regarding the amount recoverable by IAC as damages. Then, on petition for rehearing, the Court of Appeals expanded its earlier directive by instructing the trial court to “determine the respective liability of each defendant for any damages recoverable by Insurance Associates, upon the theories advanced by the parties.” Insurance Associates Corp. v. Hansen, 111 Idaho 206, 210, 723 P.2d 190, 194 (Ct.App.1986) (Hansen I). The Court of Appeals further (1) “conclude[d] that the findings of fact made by the district court are supported by the evidence, are not clearly erroneous and should not be set aside,” id. at 206-207, 723 P.2d at 194-195; (2) “[held] the agreement was supported by consideration,” id. at 207-208, 723 P.2d at 195-196; and (3) declined to award attorney fees on appeal to either party.

On January 7, 1987, IAC moved for entry of judgment in accordance with the Court of Appeals decision. Hearing was held on IAC’s motion and the court filed an opinion dated February 20, 1987, directing the parties to submit additional authorities and arguments in writing. Subsequently, on July 23, 1987, the trial court filed its memorandum opinion and order dismissing IAC’s claim against Swan, but granting IAC’s claim against Hansen in the principal amount of $34,956.67. On August 6, 1987, the trial court entered judgment dismissing IAC’s claim against Swan and awarding IAC judgment against Hansen in the principal sum of $34,956.67 together with IAC’s costs and attorney fees for a total judgment of $49,522.12. IAC now appeals from the trial court’s judgment.

II

IAC first contends that the trial court’s findings of fact, as contained in its original decision filed March 22, 1985, are erroneous and not supported by the evidence. However, IAC is precluded from raising that issue. Before remanding the case back to the trial court, the Court of Appeals expressly “conclude[d] that the findings of fact made by the district court are supported by the evidence, are not clearly erroneous and should not be set aside. I.R.C.P. 52(a).” 111 Idaho at 206-207, 723 P.2d at 190-191. Accordingly, the facts having been decided, they are final, they have become the law of the case, and the Court of Appeals’ pronouncement must [951]*951be adhered to, both in the trial court and on subsequent appeal. Airstream, Inc. v. CIT Financial Services, Inc., 115 Idaho 569, 768 P.2d 1302 (1988); Matter of Barker, 110 Idaho 871, 719 P.2d 1131 (1986); Suitts v. First Security Bank of Idaho, 110 Idaho 15, 713 P.2d 1374 (1985).

Ill

IAC next contends that the amount of the trial court’s judgment against Hansen is incorrect. We disagree. The judgment was based upon the wording of the employment agreement which provides:

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Insurance Associates Corp. v. Hansen
782 P.2d 1230 (Idaho Supreme Court, 1989)

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Bluebook (online)
782 P.2d 1230, 116 Idaho 948, 1989 Ida. LEXIS 158, Counsel Stack Legal Research, https://law.counselstack.com/opinion/insurance-associates-corp-v-hansen-idaho-1989.