Kofoed Public Relations Associates, Inc. v. Stimson

35 Fla. Supp. 20
CourtCircuit Court of the 17th Judicial Circuit of Florida, Broward County
DecidedJanuary 4, 1971
DocketNo. 70-7054
StatusPublished

This text of 35 Fla. Supp. 20 (Kofoed Public Relations Associates, Inc. v. Stimson) is published on Counsel Stack Legal Research, covering Circuit Court of the 17th Judicial Circuit of Florida, Broward County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kofoed Public Relations Associates, Inc. v. Stimson, 35 Fla. Supp. 20 (Fla. Super. Ct. 1971).

Opinion

STEWART F. LaMOTTE, Jr., Circuit Judge.

Order granting motion to dismiss, October 30, 1970: Defendant has moved to dismiss plaintiff’s complaint on the ground that the agreement not to compete sued upon is void under provisions of §542.12, Florida Statutes. The court has heard argument of counsel and has considered the memorandum submitted. Upon consideration of the complaint and the applicable law, the court makes the following findings —

The complaint and the employment agreement attached thereto disclose that on May 12, 1969 plaintiff employed defendant as a solicitor and salesman for public relations, advertising and related business on behalf of the plaintiff. Defendant terminated his employment with the plaintiff on about September 1, 1970. Subsequently defendant embarked on a public relations and advertising business of his own within the geographical area in which plaintiff was engaged in business at the time of defendant’s termination.

Plaintiff has based its suit for injunction and damages on section 6 of the employment agreement entitled “Restrictive Covenants”. No specific geographical area is set forth in that agreement in which defendant is not to compete. Geographical area is defined variously in the agreement as —

“[W]ithin which the Firm is operating its business at the time of termination of this agreement the advertising or public relations agency business or any of the clients, customers or accounts of the Firm that are doing business with the Firm at any time prior to termination of the employment herein.”

[22]*22and,

“[Wjhere they have either sold or solicited accounts, customers or clients.”

and,

“[A]ny county, or similar'political subdivision wherein any clients, customers or accounts of the Firm are located.”

§542.12 provides that “every contract by which anyone is restrained from exercising a lawful profession, trade or business of any kind ... is to that extent void.” The statute does provide certain exceptions. The exception that plaintiff seeks to come within is subsection (2) which provides that “one who is employed as an agent or employee may agree with his employer to refrain from carrying on or engaging in a similar business and from soliciting old customers of such employer within a reasonably limited time and area.”

Because §542.12 voids restraints on former employees unless a specific exception is applicable, the agreement sued upon must disclose on its face that it meets one of the exceptions. The specific issue is — whether an agreement not to compete by a public relations and advertising salesman is void under Florida Statute §542.72 when the agreement does not contain any specifically reasonably limited area but contains broad language covering any place in which the employer has done business or solicited business or in which any customer of the employer is located.

Florida appellate courts have not considered this issue. While there are many cases where courts have limited the area prescribed in the agreement, they have all been situations where the agreement on its face purported to set forth specifically reasonably limited areas. It is an accepted principle of law that courts will not write the terms of an agreement. Plaintiff is seeking to have the court set the area contemplated by the parties. Plaintiff’s complaint suggests that the area be central and south Florida. But the parties did not agree to that area. The court cannot write the terms for the parties.

Because the restrictive covenant section of the agreement sued upon does not contain the statutory requisite of a reasonably limited area it is void and thus unenforceable.

Two other jurisdictions have specifically ruled on the instant issue under their laws.

In Baker v. Starkey, 144 N.W. 2d 889 (Iowa 1966), the Iowa Supreme Court in a lengthy well reasoned opinion, covering the [23]*23law of other jurisdictions as well, stated that a former employee of a management consulting firm could not be held to a restrictive covenant in an employment contract which prevented the employee from competing in any town or city in the United States in which the employer is rendering services to clients at the time of the termination of the agreement. The court held that as a matter of law it was too broad in scope of area to be reasonable and was therefore unenforceable.

In Davis-Robertson Agency v. Duke, 119 F. Supp. 931 (E.D. Va. 1953) (applying Virginia law), the court held that a former employee of an advertising agency could not be held to a restrictive covenant in an employment agreement which prevented the employee from carrying on a similar business for a period of five years when no area was stated in the agreement.

For the reasons stated the agreement not to compete sued upon is void as a matter of law. It is thereupon ordered — (1) Defendant’s motion to dismiss the complaint is granted. (2) Plaintiff shall have twenty days from the date of this order to serve an amended complaint.

Final judgment, January 4, 1971: This cause came on to be heard on the defendant’s motion to consolidate this cause with Kofoed Public Relations Associates, Inc., v. Richard A. Mullins, no. 70-8403 “J” LaMotte (formerly “J” Tedder), and defendant’s motion for summary judgment. Upon having heard argument of counsel, considering the record herein and being otherwise advised in the premises, the court makes the following findings —

Pursuant to RCP 1.270 (a), this case and the Mullins case referred to above, are properly consolidated as they involve common questions of law and fact. The original complaint in this case is virtually verbatim to the complaint filed by the same plaintiff in the Mullins case. The employment contracts sued upon in both cases are virtually identical also. The same issues of law and fact have been raised in both cases and to keep these cases in different divisions or on separate dockets would tend to cause extra costs and delay to the parties and to the court.

The defendant is entitled to summary judgment for the reasons stated by the court in its order granting motion to dismiss dated October 30th, 1970 which is incorporated herein, and for the additional reasons hereinafter stated.

Subsequent to the court’s order granting motion to dismiss, the plaintiff served a second amended complaint and an additional amendment to it. The main difference between the second amended [24]*24complaint and the original complaint is that a fourth count was added and there appears to be a greater emphasis on plaintiff’s protecting its “secrets”.

Plaintiff’s emphasis on “secrets” is presumably an attempt to come within the rule of the case of Fountain v. Hudson Cush-N-Foam Corp., 122 So.2d 232 (Fla. 3 App. 1960). Plaintiff’s allegations are not sufficient to come within the rule of the Fountain case. In that case an out-of-state manufacturer of foam products secured a temporary injunction restraining its former employee from divulging trade secrets and working for a competitor in Florida. The former employer alleged it sold its products throughout the United States. On appeal the employee did not question the propriety of the injunction restraining his disclosure of trade secrets but contested the restraint on his employment. The court found that the restraint on his employment was necessary to fully protect the restraint of his divulging trade secrets.

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Bluebook (online)
35 Fla. Supp. 20, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kofoed-public-relations-associates-inc-v-stimson-flacirct17bro-1971.