Nobles-Hamilton v. Thompson

883 So. 2d 1247, 2003 WL 203252
CourtCourt of Civil Appeals of Alabama
DecidedJanuary 16, 2004
Docket2010740
StatusPublished
Cited by4 cases

This text of 883 So. 2d 1247 (Nobles-Hamilton v. Thompson) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nobles-Hamilton v. Thompson, 883 So. 2d 1247, 2003 WL 203252 (Ala. Ct. App. 2004).

Opinion

883 So.2d 1247 (2003)

Carolyn NOBLES-HAMILTON
v.
Steve THOMPSON.

2010740.

Court of Civil Appeals of Alabama.

January 31, 2003.
Certiorari Quashed January 16, 2004

*1248 James W. Cameron of Cameron & Cameron, Montgomery, for appellant.

Raymond Johnson, Montgomery, for appellee.

Alabama Supreme Court 1020759.

CRAWLEY, Judge.

Carolyn Nobles-Hamilton was employed at Health Wise, a health-food store located in the Village East shopping center on the Atlanta Highway in Montgomery, until August 31, 2000. She had worked at the store for approximately 14 years. In 1988, the owner of Health Wise, Mitch Freeland, sold the store to Steve Thompson. Thompson continued to employ Nobles-Hamilton, but he requested that she sign an employment contract containing a noncompetition agreement, which read as follows:

"Item Seven
"The employee agrees not to open a competing business, or to be employed by a competing business, for a period of three years after her employment at Health Wise terminates. Further, employee agrees not to divulge any trade secrets or operating procedures of Health Wise to any person, or to ever use any customer list of Health Wise or to solicit any Health Wise customers away from Health Wise."

When Health Wise's profits declined in the summer of 2000, Thompson discussed the matter with Nobles-Hamilton and, according to his testimony, explained that she would have to become a part-time employee if the profits did not increase. He said that Nobles-Hamilton informed him that part-time employment would not be sufficient to cover her living expenses, so, he said, he told her to start looking for other employment in the event that the profits did not improve. In August 2000, Thompson informed Nobles-Hamilton by letter that she would be terminated at the end of the month.

Some time shortly after her termination, Nobles-Hamilton decided to open her own health-food store, Health Source, in an empty portion of the Nobles Glass building, which is owned by her parents. Health Source is located on Burbank Drive, which intersects with the Atlanta Highway. In September 2000, after Nobles-Hamilton's employment had been terminated, Thompson and his daughter ate a meal at a drive-in restaurant on the corner of Burbank Drive and the Atlanta Highway. As he returned to Health Wise, Thompson drove down Burbank Drive and past the Nobles Glass building. Thompson noticed Nobles-Hamilton's automobile in front of the building and noticed that Nobles-Hamilton was putting up shelves in the empty portion of the building. The next evening, Thompson stopped at the Nobles Glass building to see what items might be on the shelves he saw Nobles-Hamilton installing. According to Thompson, the shelves contained health-food products that are also sold at Health Wise.

Thompson sued Nobles-Hamilton, alleging that she had breached the noncompetition agreement in her employment contract and that she had interfered with his business relationships with his customers. Nobles-Hamilton filed a motion for a summary judgment, arguing that the noncompetition agreement was void because it lacked a definite geographical limitation. The trial court denied her motion, and the case proceeded to a jury trial.

At trial, the basic issues were whether Nobles-Hamilton had signed the employment contract containing the noncompetition *1249 agreement, whether she had breached that agreement, whether she had interfered with Thompson's business relationships with his customers, and, if she had breached the agreement or interfered with those business relationships, what, if any, damage her actions had caused Thompson. The jury found in Thompson's favor, awarding him $30,000 in damages. After the trial, the court granted Thompson's request for an injunction preventing Nobles-Hamilton from operating Health Source or any other health-food store within a five-mile radius of Health Wise for the balance of the three-year term provided for in the noncompetition agreement. Nobles-Hamilton appeals, arguing that the noncompetition agreement was void because it did not include a specific geographical limitation; that the noncompetition agreement was void in that Thompson did not have a protectible interest because at the end of her employment Nobles-Hamilton essentially only "ran the cash register"; and that the trial court erred in making a new contract for the parties by supplying a missing term—a geographical limitation. She does not raise any arguments concerning the intentional-interference-with-business-relations claim.

The thrust of Nobles-Hamilton's argument is that the noncompetition agreement does not comply with Ala.Code 1975, § 8-1-1, because it does not contain a definite geographical limitation. Thompson argues, however, that the geographical limitation is contained within the term "competing," thus precluding Nobles-Hamilton from opening a store or being employed at a store that would compete with Health Wise for the same customer base. See Parker v. EBSCO Indus., Inc., 282 Ala. 98, 100-01, 209 So.2d 383, 384-85 (1968) (affirming the enforcement of a noncompetition agreement that did not contain a specific geographical limitation; the trial court ordered that the former employee not solicit established customers of the employer or induce other employees of the employer to leave their employment for a one-year period). Additionally, Thompson argues that the trial court, under its broad equitable powers, has the right to restrict the time limitation or the geographical limitation contained in the noncompetition agreement to a more reasonable one as appropriate under the circumstances of the individual case rather than declaring the entire noncompetition agreement void. See Mason Corp. v. Kennedy, 286 Ala. 639, 645, 244 So.2d 585, 590 (1971). Nobles-Hamilton disagrees, arguing that supplying a missing but required term is not the same as limiting an existing term in order to make the agreement reasonable under the law.

Although noncompetition agreements are not favored, see Ala.Code 1975, § 8-1-1(a), an "employee may agree with his employer to refrain from carrying on or engaging in a similar business and from soliciting old customers of such employer within a specified county, city, or part thereof so long as the ... employer carries on a like business therein." Ala.Code 1975, § 8-1-1(b). Our courts, in interpreting that statute, have developed a test to determine whether a given noncompetition agreement is enforceable. A court will enforce a noncompetition agreement only if:

"(1) the employer has a protectable interest;
"(2) the restriction is reasonably related to that interest;
"(3) the restriction is reasonable in time and place;
"(4) the restriction imposes no undue hardship."

DeVoe v. Cheatham, 413 So.2d 1141, 1142 (Ala.1982). "The burden is upon the person or entity seeking to enforce a contract *1250 which restrains a lawful trade or business to show that it is not void under § 8-1-1." Calhoun v. Brendle, Inc., 502 So.2d 689, 693 (Ala.1986).

We first address whether Thompson has proven that he has a protectible interest.

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Cite This Page — Counsel Stack

Bluebook (online)
883 So. 2d 1247, 2003 WL 203252, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nobles-hamilton-v-thompson-alacivapp-2004.