Lloyd Pest Control Co. v. Lopez

343 P.2d 757, 173 Cal. App. 2d 606, 1959 Cal. App. LEXIS 1632
CourtCalifornia Court of Appeal
DecidedSeptember 11, 1959
DocketCiv. 6124
StatusPublished

This text of 343 P.2d 757 (Lloyd Pest Control Co. v. Lopez) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lloyd Pest Control Co. v. Lopez, 343 P.2d 757, 173 Cal. App. 2d 606, 1959 Cal. App. LEXIS 1632 (Cal. Ct. App. 1959).

Opinion

MUSSELL, J.

This is an action for an injunction and damages in which plaintiff claims that defendant Dick Lopez, a former employee of plaintiff, acquired knowledge of certain trade secrets and property of the plaintiff while in plaintiff’s employ in the pest control business, and that subsequently the defendant engaged in the same business himself in the same locality and used his knowledge of plaintiff’s trade secrets to divert and take away plaintiff’s business for himself.

The trial court rendered judgment that the defendant in no way used any of plaintiff’s trade secrets; that he did not solicit any of plaintiff’s customers and that he did not engage in any unfair competition. It was further adjudged that the temporary restraining order theretofore issued be dissolved and that the plaintiff was not damaged in any way whatsoever.

Plaintiff appeals from the judgment, claiming that the findings of fact are not supported by the evidence and that the judgment is against the law.

Appellant Lloyd Pest Control Company, a California corporation since 1936, has for approximately 20 years conducted a general pest control business in San Diego, serving private residences and business establishments at regular intervals for the purpose of exterminating and controlling various types of insects and rodents. The business is comprised of a number of control routes throughout the city of San Diego and outlying areas, one of which is the “La Jolla route,” which is involved herein. Each of the routes is serviced by a “route man.”

On May 8, 1950, Lopez was employed as a full-time employee by appellant company. He was then inexperienced in the pest control business and received instructions and training from appellant and attended school to become pro *609 fieient in the business. In October, 1950, the La Jolla route was made a “full-time route,” with approximately 265 customers and Lopez became the route man. Prom about the 15th of November, 1951, until March 29, 1957, the date he voluntarily terminated his employment with appellant, Lopez was the exclusive route man on the La Jolla route and on August 1, 1955, he was employed on a commission basis rather than a straight salary. He gave appellant two weeks notice of termination of his employment and the record shows that he had no written agreement with appellant as to the terms of his employment or his activities after ceasing to work for the appellant corporation.

Subsequent to terminating his employment with appellant, Lopez passed the state examination for a general pest control license. About seven months after terminating his employment with appellant, during which time he did not engage in business, Lopez, on September 26, 1957, went into the general pest control business for himself in La Jolla under the fictitious name and style of “Universal Pest Control.” He announced the opening of his business in La Jolla by running an ad in a La Jolla newspaper and sending approximately 2,000 announcement cards to residents of La Jolla. He secured the names and addresses for these announcements from the La Jolla telephone directory.

Appellant, in the operation of its business maintained two basic types of card index files—“route cards” and “office index cards.” The route men were not permitted to remove these cards from the office and they were not available to them. The “route index cards” contained the customer’s name and address, the type of service and time when the service was to be rendered, any special instructions, the price of the job when the route man made the collections at the time of service, and the date of the last service rendered. It was from these route index cards that the route man prepared his day’s work, transferring the necessary information from the cards to a work pad which he took with him on his route. Appellant "did not use in its business any particular processes or techniques perfected by the company and had not compounded any special chemical compound or formula for use in the business. Its operation was comparable in all respects with those of competitors in the La Jolla area. Some of appellant’s customers signed service contracts for definite periods of time and in many other instances the service furnished by it *610 was on a month to month basis. Lopez, while working for plaintiff, did not do any collecting or fix the monthly charges.

Many of appellant’s customers were dissatisfied with the service they received after Lopez left its employ and many of these customers quit the service long before Lopez went into business for himself. Many customers quit because they liked Lopez personally; others because they wanted a service with headquarters in La Jolla; others because they felt that Lopez was more efficient and they liked his service better; and still others because they were dissatisfied with appellant’s service.

After terminating his employment with appellant and going into busines for himself, Lopez made no special effort to contact any of appellant’s customers. However, he met persons on the street or in their homes who recognized or knew him and asked him to take over their service; others he met while going from door to door canvassing in La Jolla. In this canvassing Lopez was looking for business but in no instance did he ask anyone to cancel their service with appellant and give him the business. He was very cautious in this regard and actually went out of his way to avoid taking customers from appellant.

The trial court found the foregoing facts to be true and further found that the activities of Lopez fell far short of unlawful solicitation of appellant’s customers or former customers; that the plaintiff’s business is one where service rather than production or technique is involved; that Lopez used no knowledge or information he had to the detriment of plaintiff; that no unfair competition on the part of Lopez existed and that his competition was fair in all respects and should be encouraged rather than discouraged. The trial court’s findings herein are supported by substantial evidence and cannot be here disturbed. (Estate of Bristol, 23 Cal.2d 221, 223 [143 P.2d 689].) And, as is said in Estate of Teel, 25 Cal.2d 520, 527 [154 P.2d 384] :

“ ‘All of the evidence most favorable to the respondent must be accepted as true, and that unfavorable discarded as not having sufficient verity to be accepted by the trier of fact. If the evidence so viewed is sufficient as a matter of law, the judgment must be affirmed. ’ ”

In Aetna Bldg. Maintenance Co. v. West, 39 Cal.2d 198 [246 P.2d 11], it appears that for about three years West was employed by the Aetna Building Maintenance Company as a salesman and supervisor. After he left that employment and engaged in the same business, Aetna sued him for damages *611 assertedly resulting from unfair competition.

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Related

Alex Foods, Inc. v. Metcalfe
290 P.2d 646 (California Court of Appeal, 1955)
Aetna Building Maintenance Co. v. West
246 P.2d 11 (California Supreme Court, 1952)
Continental Car-Na-Var Corp. v. Moseley
148 P.2d 9 (California Supreme Court, 1944)
Estate of Bristol v. Young
143 P.2d 689 (California Supreme Court, 1943)
Teel v. Gaskill
154 P.2d 384 (California Supreme Court, 1944)

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Bluebook (online)
343 P.2d 757, 173 Cal. App. 2d 606, 1959 Cal. App. LEXIS 1632, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lloyd-pest-control-co-v-lopez-calctapp-1959.