Levy v. Cosmos

221 A.D. 533, 224 N.Y.S. 486, 1927 N.Y. App. Div. LEXIS 6491
Appellate Division of the Supreme Court of the State of New York·Decided November 4, 1927·Published·Cited by 8 cases

Opinion

Merrell, J.

The plaintiffs are copartners doing business under the name and style of Champion Coat, Apron and Towel Supply Company in New York city and vicinity. The business of the plaintiffs consists of supplying clean coats, aprons, towels and linen to various customers located in the city of New York and vicinity, including Long Island. The merchandise in question is owned by plaintiffs and delivered and let to their customers after being freshly laundered. The defendant, appellant, since on or about the 1st of December, 1925, has been and still is engaged in a similar business under the name and style of Cosmos Coat, Apron and Towel Supply Company. Prior to December 1, 1925, a corporation known as Brew Coat and Apron Supply Company, Inc., was also engaged in the city of New York and vicinity in a similar business and had a considerable number of customers on Long Island, N. Y. The Brew corporation had in its employ one John Pease, named as a defendant in this action. The contract with Pease was in writing and contained a negative covenant that the employee would not, for the period of three years after the end or termination of his employment, irrespective of the time, manner or cause of the said termination, directly or indirectly, either as principal, agent, employee, employer, stockholder, copartner, or in- any other individual or representative capacity whatever, solicit, serve or cater to or engage, assist, be interested in or connected with any other person, firm or corporation soliciting, serving or catering to any of the customers served by him or by [535] any other employee of the Brew company during his employment with said company. On or about December 1, 1925, the plaintiffs purchased the good will of the supply business theretofore conducted by said Brew company on Long Island, the customers of which had theretofore been served by the defendant Pease as the employee and driver of the Brew company. At the time of the purchase of said business by plaintiffs the Brew company duly assigned, set over and transferred to the plaintiffs the aforesaid contract of employment between it and the defendant Pease and all rights of the said Brew company under said contract of employment of the said defendant. Pease left the employment of the Brew company on November 30, 1925, and never served in the employ of the plaintiffs. The defendant Peter J. Cosmos was the proprietor of the Cosmos Ice Cream Parlor at Lyndenhurst, L. I., and was a patron of the Brew company prior to December 1, 1925. The defendant Cosmos, in September, 1925, determined himself to enter the coat, apron and towel supply business and purchased the necessary materials for embarking in such enterprise, and entered into an arrangement with the defendant Pease whereby he employed the latter as a driver to solicit business for him upon a salary and commission compensation basis. It is alleged in the complaint that such employment of the defendant Pease by the defendant, appellant, Cosmos was in furtherance of a conspiracy entered into between the said defendants to obtain for the defendant Cosmos the trade and patronage of all of the customers that had theretofore been served by the defendant Pease while in the employ of the Brew company, and that the said defendants duly agreed together that the defendant Pease should thereupon solicit the patronage of said customers whose trade and patronage had been duly transferred to the plaintiffs herein, and that as a result of such conspiracy and soliciting by the defendant Pease for and in behalf of and in the name of the defendant, appellant, Cosmos, the plaintiffs have lost the trade and patronage of many of their customers. It is alleged that the defendants, although requested to cease the soliciting of plaintiffs’ said customers, have failed and refused to comply with such request and threaten to continue to solicit the said trade of the former customers of the Brew company who had been served by the said defendant Pease, and that large profits from the patronage of said customers have been made by the defendants. The defendants deny that any conspiracy has ever existed between the said defendants to obtain the former customers of the Brew company or that there has been any improper solicitation of any patronage to which the plaintiffs are entitled.

The learned trial court found upon the evidence presented at [536] the trial the existence of the alleged conspiracy between the defendant Pease and the defendant Cosmos to obtain for the latter the trade and patronage of all of the customers who had theretofore been served by the defendant Pease while in the employ of the Brew company, and found that the defendants agreed together that the defendant Pease should solicit the patronage of said customers whose trade and patronage had been duly transferred to the plaintiffs herein, and that as a result of the said soliciting by the said defendant Pease for and in behalf and in the name of the defendant Cosmos the plaintiffs have lost the trade and patronage of many of the said customers. A list of some thirty-three customers is set forth in the decision of the learned trial court as having been solicited directly or indirectly by the defendant Pease and whose patronage was obtained for the defendant Cosmos as the result thereof. By the interlocutory judgment herein the defendants and each of them are enjoined and restrained for the period of three years from December 1, 1925, from in any manner, directly or indirectly, serving or soliciting the coat, apron and towel patronage of the said thirty-three persons, firms and corporations named in the decision herein as having been improperly solicited by the defendant Pease for and on behalf of the defendant, appellant, Cosmos, pursuant to such collusive agreement between the said defendants, one of the forbidden establishments being the ice cream parlor of this very appellant. The defendants are required to account to the plaintiffs for the profits that the plaintiffs have lost upon the business of plaintiffs’ said customers that were obtained by the solicitation of the defendant Pease for the defendant Cosmos.

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Levy v. Cosmos, 221 A.D. 533, 224 N.Y.S. 486, 1927 N.Y. App. Div. LEXIS 6491 (N.Y. Ct. App. 1927).

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