Messenger Publishing Co. v. Mokstad

257 Ill. App. 161, 1930 Ill. App. LEXIS 302
CourtAppellate Court of Illinois
DecidedApril 28, 1930
DocketGen. No. 33,833
StatusPublished
Cited by10 cases

This text of 257 Ill. App. 161 (Messenger Publishing Co. v. Mokstad) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Messenger Publishing Co. v. Mokstad, 257 Ill. App. 161, 1930 Ill. App. LEXIS 302 (Ill. Ct. App. 1930).

Opinion

Mr. Justice O’Connor

delivered the opinion of the court.

On January 5, 1928, the complainant filed its bill against the defendants seeking to enjoin them from interfering with complainant in the conduct of its business, and on January 19 an order was entered enjoining each of the defendants, as prayed for in the bill. February 6 defendants moved to vacate the injunction. The motion, together with the cause when at issue, was referred to a master, who took the evidence, made up his report and recommended that the orders awarding the temporary injunction be vacated and the bill dismissed. The report was filed in court October 23, 1928. Exceptions were sustained to the report and a decree entered substantially as prayed for in the bill. The three defendants appeal.

The record discloses that complainant was engaged in business in Chicago publishing calendars, which •are referred to in the record as sacred art calendars. There appear to have been four different kinds of calendars, designated thrift calendars, which were sold by complainant to banks, florist calendars, sacred art and church calendars, and historical calendars. Complainant carried on its business to a great extent by means of traveling salesmen and in each town but one concern engaged in a particular line of business would be sold calendars. The calendars showed the name and address of the business concern, which gave them to its customers and displayed some of them in hotels, garages and other places, for advertising purposes.

Defendant Mokstad was engaged in a similar line of business and was a competitor of complainant. Before going into business for himself he was employed by complainant. Defendants King and Hodges were traveling salesmen employed by complainant for a number of years, — Hodges since 1903 and King since 1921. They both worked until about the last of the year 1927, when they left complainant’s employ, or were discharged, and went to work for defendant Mokstad. Both King and Hodges had written contracts of employment with complainant for the calendar year 1927. They were to travel in Illinois, King having the southern 51 counties and Hodges the northern 49 counties. About September, 1927, they each entered into another contract of employment with the complainant for the calendar year 1928, King being assigned 39 counties in the southern part and Hodges 37 counties in the middle of the State.

The evidence shows that about October, 1927, defendant Mokstad began a systematic effort to secure all of complainant’s traveling salesmen, including defendants King and Hodges. He knew that they were under contract with complainant for 1928. We think it unnecessary to go into the evidence showing Mokstad’s methods in this respect. It is sufficient for us to say that the undisputed evidence shows that the methods he employed were wholly unwarranted. Hodges and King agreed to go with Mokstad for the year 1928 some time before December, 1927, but this jfact was concealed from complainant, and during the latter part of 1927 although ostensibly working for complainant they were actually doing some work for Mokstad. The evidence further shows that complainant for a period of years had built up quite a trade and had prepared a list of its customers which it kept under lock and key in steel filing cabinets under careful supervision at complainant’s office. These lists were bound up and a copy of them was given to King and Hodges to enable them to do their work in selling calendars. They are not merely a list of names and addresses of complainant’s customers but contain a great deal of other information. The counties, cities and villages are named, together with the population of each; the names of the customers who brought complainant’s calendars during 1926, 1927 and 1928, the kind- of calendar each customer bought, and other information.

When King and Hodges in the fall of 1927 agreed to go to work for Mokstad they turned over these lists to him, whereupon he made copies of them and began to circularize complainant’s customers. The evidence further shows that complainant had spent large sums of money in advertising its business and compiling the lists; that once obtained, about 70 per cent of its customers renewed their orders from year to year.

The temporary injunction against King enjoined him from selling or offering for sale in the territory (39 counties in Hlinois) mentioned in his contract with complainant any calendars except complainant’s “until further order of this court but not beyond December 31, 1928.” Hodges was enjoined from divulging confidential lists of customers or other trade secrets of the complainant company and from selling or offering for sale calendars to such of complainant’s customers as had not purchased such calendars from anyone but the Messenger company during 1927; but the injunction was not to continue “beyond December 31, 1928.” In discussing this matter counsel for defendants say, “Hodges is not restricted as much as King. He can work in the territory so long as he stays away from the persons on the list he furnished to Molestad, and even as to those he may solicit any others who were already known to Mokstad. ’ ’

Mokstad is enjoined from persuading or inducing any salesmen under lawful contract with complainant to break his contract with complainant and from soliciting during the calendar year 1928 the sale of any calendars to complainant’s customers of 1927 who had during that year bought such calendars only from the Messenger company. This injunction was limited to the territories covered by the King and Hodges contracts with the Messenger company. It was further limited to those persons whose names and addresses were secured by Mokstad from King and Hodges and who were theretofore unknown to Mokstad. The injunction was to continue “until the further order of this court but not beyond December 31, 1928.”

The final decree was entered July 13, 1929. It sets forth the orders for the temporary injunction, makes certain findings, and orders and decrees that defendants’ motions to dissolve the temporary injunctions be denied. The injunction against King is modified so as to restrain him only from conspiring and co-operating with Mokstad and from delivering to him complainant’s lists of customers or copies thereof or other information, or from using the same, “but not beyond December 31, 1928.” A permanent injunction is decreed against Mokstad enjoining him from directly or indirectly persuading or inducing any of the complainant’s salesmen to break his contract of employment with the complainant. He is further permanently enjoined from using complainant’s list which he had obtained from King and Hodges.

There is evidence in the record to the effect that complainant had wrongfully induced three salesmen employed by Mokstad to leave Mokstad and work for complainant in the sale of calendars, and that other of defendants’ employees were wrongfully induced to leave defendants and were employed by complainant. Other complaints are made against the complainant to the effect that it wrongfully solicited defendants’ customers, etc. And in view of this evidence defendants contend that complainant’s bill should have been dismissed because complainant did not come into equity with clean hands. We think we ought to say that the evidence of wrongdoing on the part of complainant is not of the same character as that complained of by complainant against defendants.

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257 Ill. App. 161, 1930 Ill. App. LEXIS 302, Counsel Stack Legal Research, https://law.counselstack.com/opinion/messenger-publishing-co-v-mokstad-illappct-1930.