Loven v. People ex rel. Dr. Peter Fahrney & Sons Co.

42 N.E. 82, 158 Ill. 159
CourtIllinois Supreme Court
DecidedOctober 11, 1895
StatusPublished
Cited by20 cases

This text of 42 N.E. 82 (Loven v. People ex rel. Dr. Peter Fahrney & Sons Co.) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Loven v. People ex rel. Dr. Peter Fahrney & Sons Co., 42 N.E. 82, 158 Ill. 159 (Ill. 1895).

Opinion

Mr. Justice Bailey

delivered the opinion of the court:

This was a proceeding in chancery, on the relation of the Dr. Peter Fahrney & Sons Company, a corporation, against Sam Loven, for contempt in violating an injunction. The bill upon which the injunction was awarded was brought by the relator against Loven, and alleged, in substance, that for over twenty-five years Dr. Peter Fahrney had been engaged in the business of preparing and selling medicines, and during most of that time had conducted his business in the city of Chicago; that he had expended many thousands of dollars in manufacturing, advertising and selling his medicines, and that those medicines were very valuable, and that the reputation which he had acquired through long experience and fair dealing was of great value; that he had, at various times, invented and prepared certain valuable medicines, and had adopted as his trade-marks in preparing and selling the same, the words “Kuriko,” “Ole-Oid,” “Uterine” and “Stomach Vigor,” and that about July 11, 1890, Fahrney had sold and transferred the good-will of the sale of those medicines, together with the business, to the complainant, as his successor, and that since that date the complainant had continued to manufacture, advertise and sell such medicines with great financial profit to it, but since the transfer, Fahrney, as the complainant’s president and the owner of nearly all its stock, had managed and directed the compounding and sale of these medicines; that about April 1,1889, Fahrney employed Loven, the defendant, as his confidential book-keeper and Swedish translator and correspondent, and that he had con-' tinned in such employ up to the time of the transfer of the business to the complainant, and that from that date he occupied the same position with the complainant; that during the confidential relations between Loven and Fahrney and the complainant, Loven had acquired knowledge of the business, so far as advertising and selling of medicines was concerned, but while he was in the employ of Fahrney, and later in the employ of the complainant, Loven fraudulently, and without the knowledge or consent of Fahrney or the complainant, copied the names of a great number of their customers, together with their post-office addresses, from the books kept by Fahrney and by the complainant, and also acquired the names and addresses of customers by means of his duties as correspondent; that for the purpose of carrying on a fraudulent business in opposition to the complainant, Loven, without the knowledge or consent of Fahrney or the complainant, signed his name in full with the signa-, ture of Fahrney in signing letters directed to customers; that when Fahrney employed Loven as aforesaid, and for some time thereafter, Loven received a salary for his service of eight dollars per week, and afterwards his salary was raised to ten dollars, later to twelve dollars, and still later to fifteen dollars per week, which was at that time considered all such service was worth; that at the time Fahrney employed Loven, as aforesaid, it was distinctly agreed by and between Fahrney and Loven that all matters connected with the business should be kept secret by Loven; that Loven agreed not to divulge the secrets of manufacturing or selling the medicines, the list of customers, or any other secrets or information connected with the business which he would acquire while so employed, to any person whomsoever, except with the permission or direction of Fahrney; that this agreement was based on the consideration of Fahrney’s hiring and paying Loven wages for his services; that at the time of the transfer of the business to complainant the same agreement was entered into between Loven and the complainant, which agreement” was to include all the knowledge and information of the business which Loven had acquired while in the employ of Fahrney, or would acquire by means of his employment with the complainant, and that Loven should not use such knowledge for any purposes of his own, or otherwise.

The bill further alleged, that on or about the 17th day of November, 1890, Loven left the employ of the complainant; that for several months prior to that date he had assisted in opening letters and correspondence received in the course of business; that on or about that date, Fahrney, as the complainant’s president, directed other clerks in its employ from thenceforward to open such correspondence, and from that date Loven became dissatisfied with his employment, for what reason complainant did not know; that about November 17, 1890, Loven informed complainant that he had acquired much knowledge of the business and had secured the names of complainant’s customers, and that such knowledge was valuable to him, and unless he was paid a large salary he would start in business in opposition to that of complainant in the sale of these medicines, and that he would use the knowledge so acquired in conducting the business; that thereupon the complainant, through its president, discharged Loven from its service.

The bill further represents, that on or about January 15, 1891, Loven, with intent to defraud complainant, commenced to manufacture a medicine which he designated by circulars, correspondence and otherwise, as “Kuraho;” that such medicine was manufactured for the purpose of imitating the medicine known as “Kuriko,” manufactured by complainant; that about the same date Loven commenced to manufacture, advertise and sell a medicine designated as “Ole-Oil,” which was intended to deceive the customers of complainant, and make them believe that it was the same medicine as “Ole-Oid;” that the use of the words “Kuraho” and “Ole-Oil” was intended to and did deceive the public and the customers of the complainant, and made them believe that it was the same medicine manufactured by complainant, as above stated, and that Loven was threatening to manufacture, advertise and sell the medicines called “Uterine” and “Stomach Vigor” to the complainant’s customers; that Loven had little or no education as a pharmacist or druggist, and was not capable, by education or otherwise, of preparing any medicine which was safe for the public to use, except through information he may have acquired while in the service of Pahrney and complainant, but was pretending to the public, and by circulars to the customers of Pahrney and the complainant, that he was manufacturing the identical medicine manufactured by complainant, as aforesaid, and was attempting and threatening to sell those medicines, or imitations of the same, to the customers of complainant; that Loven was manufacturing and selling those medicines for the false and fraudulent purpose of defrauding complainant and stealing its business, and that in order that he may gain thereby he had taken every advantage of the knowledge acquired as aforesaid to defraud complainant and ruin its business, and had threatened to divulge all its secrets, and information of the business which he acquired during his said employment; that he had used labels, bottles and wrappers in close imitation of those used by complainant in the sale of its medicines, for the fraudulent purpose of deceiving the complainant’s customers, and had sent out many circulars in regard to the business to customers of the complaiuant, which had greatly damaged the complainant’s business; that he was using every artifice and fraud to destroy the complainant’s business, by using all the knowledge acquired while in its confidential employ for such false and fraudulent purposes, and that he had on hand large quantities of medicines and printed circulars ready to ship to complainant’s customers, in violation of his agreement with complainant.

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Cite This Page — Counsel Stack

Bluebook (online)
42 N.E. 82, 158 Ill. 159, Counsel Stack Legal Research, https://law.counselstack.com/opinion/loven-v-people-ex-rel-dr-peter-fahrney-sons-co-ill-1895.