Luketich v. Goedecke, Wood & Co., Inc.

835 S.W.2d 504, 7 I.E.R. Cas. (BNA) 1033, 1992 Mo. App. LEXIS 1077, 1992 WL 144987
CourtMissouri Court of Appeals
DecidedJune 30, 1992
Docket60895
StatusPublished
Cited by13 cases

This text of 835 S.W.2d 504 (Luketich v. Goedecke, Wood & Co., Inc.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Luketich v. Goedecke, Wood & Co., Inc., 835 S.W.2d 504, 7 I.E.R. Cas. (BNA) 1033, 1992 Mo. App. LEXIS 1077, 1992 WL 144987 (Mo. Ct. App. 1992).

Opinion

KAROHL, Judge.

Goedecke, Wood & Company, (Goedecke), appeals from a judgment in a court-tried *506 case. The trial court permanently enjoined Goedecke from making threats of litigation to enforce a non-compete agreement against former employee Paul Luketich and any employer or prospective employers. Goedecke was also ordered to pay damages in the amount of $44,989 for tor-tious interference with Luketich’s contractual relations or business expectancy with Patent Scaffolding, (Patent), his subsequent employer. Goedecke presents four points on appeal. They can be summarized as the following two points of error: (1) there was no substantial evidence to support a finding that Goedecke unilaterally breached its contract with Luketich thereby rendering the non-compete restrictive covenant unenforceable; and (2) there was no substantial evidence to support Luketich’s claim that Goedeeke’s actions were done with intent to cause a breach of contract and were done without justification. We affirm in part and reverse in part.

Goedecke is in the business of selling construction industry supplies and equipment. It operates in Missouri, Illinois, Kentucky, and Indiana. Luketich worked for Goedecke as a salesman from 1984 until July, 1990. In June, 1985, Luketich and Goedecke executed an employment contract which called for a monthly salary and contained a restrictive covenant limiting Luke-tich’s ability to work in a similar position and location for five years after termination of employment with Goedecke.

Goedecke became dissatisfied with Luke-tich’s adherence to certain administrative duties, and in May, 1990, Goedecke informed Luketich he would be compensated only by way of straight commission and he would be responsible for his own expenses beginning June 1, 1990. Goedecke’s stated goal was to have a new arrangement which would not result in reduction of Luketich’s compensation and would eliminate disputes over noncompliance with record-keeping policies. The new method of compensation, however, would delay compensation because commission payments would not be paid until customers paid for products purchased. Luketich assumed all risks associated with client nonpayment. Luketich objected but was told his only alternative was to resign. After failing to persuade Goe-decke to return to the salary arrangement, Luketich resigned July 19, 1990.

Luketich began working for Patent Scaffolding on August 20, 1990. Patent is a competitor. Goedecke wrote letters threatening to sue both Luketich and Patent if he violated the terms of the non-compete restrictive covenant. He responded through his counsel with a letter to Goedecke apprising it of the unenforceability of the restrictive covenant because of its breach in Luketich’s compensation arrangement, and referred Goedecke to Missouri caselaw in support of his position. Goedecke denied applicability of Luketich’s cited authority because of its contention that Luketich’s refusal to follow company rules constituted a prior breach. Negotiations between Goe-decke and Patent ensued, with the result that Patent discharged Luketich on November 9, 1990 because Patent wanted to avoid being sued by Goedecke.

Luketich filed a three count petition against Goedecke after his termination from Patent. In Count I, he sought a permanent injunction preventing Goedecke from any further threats of litigation arising out of enforcement of the non-compete covenant. In Count II, he alternatively sought declaratory judgment limiting the scope of the non-compete covenant. In Count III, he sought damages for tortious interference with his contractual relations or business expectancy with Patent. Goe-decke counterclaimed seeking enforcement of its non-compete agreement. The trial court found for Luketich as to Counts I and III, dismissed Count II as moot, and denied Goedecke’s counterclaim. Goedecke brought this appeal, charging error in the finding that the restrictive covenant is unenforceable and in allowance for damages stemming from its attempted enforcement.

We note at the outset that Luketich requests we dismiss Goedecke’s appeal because points improperly briefed are not preserved for review. Cook v. Wadlington, 821 S.W.2d 864 (Mo.App.1991); Rule 84.04(d); Rule 84.13(a). We reach the merits of this appeal for two reasons. First, *507 compliance with Rule 84.04 is mandatory, in part, to give “notice to the party opponent of the precise matters which must be contended with and answered.” Cook, 821 S.W.2d at 866. Luketich was able to decipher the points of error and respond to Goedecke’s brief even though the points were imperfectly stated. Second, trial court error is detailed in the argument sections of Goedecke’s brief even though not in the “points relied on” section for three of the four points. Consequently, this court is not put in the untenable position of acting as an advocate “by speculating on facts and arguments which have not been made,” Id., and Goedecke has not been denied a fair review.

We review Goedecke’s claims of error under the standard set forth in Murphy v. Carron, 536 S.W.2d 30, 32 (Mo. banc 1976). The decree or judgment in a court-tried case will be sustained by this court unless there is no substantial evidence to support it, unless it is against the weight of the evidence, or unless it erroneously declares or applies the law. Id.

Goedecke’s first point on appeal is that the evidence at trial supported a finding that Luketich was the first to breach the employment agreement rather than a finding Goedecke unilaterally breached thereby rendering the non-compete clause unenforceable. If Goedecke materially breached the employment agreement with Luketich, then Goedecke was properly barred from seeking enforcement of the non-compete covenant. Forms Mfg., Inc. v. Edwards, 705 S.W.2d 67, 69 (Mo.App.1985); Smith-Scharff Paper Co., Inc. v. Blum, 813 S.W.2d 27, 28 (Mo.App.1991). In Forms Mfg., the employer changed its salespersons’ compensation arrangement requiring them to produce a certain volume each month in order to receive full commission payments. This change in salespersons’ compensation was held to be a unilateral breach on the part of the employer, barring the employer from enforcing its non-compete covenant against its employees. “A party to a contract cannot claim its benefits where he is the first to violate it.” Forms Mfg., 705 S.W.2d at 69.

The question of whether Goedecke unilaterally breached the contract was largely a question of fact for the trial court. Id. In examining the evidence, we give deference to the trial court’s opportunity to observe the parties while testifying, assess their credibility, and weigh their sincerity of character. Smith-Scharff, 813 S.W.2d at 28. The evidence before the trial court included:

(1) an employment contract which set a monthly salary subject to change as agreed upon by the parties;

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835 S.W.2d 504, 7 I.E.R. Cas. (BNA) 1033, 1992 Mo. App. LEXIS 1077, 1992 WL 144987, Counsel Stack Legal Research, https://law.counselstack.com/opinion/luketich-v-goedecke-wood-co-inc-moctapp-1992.