Pestel Milk Co. v. Model Dairy Products Co.

52 N.E.2d 651, 39 Ohio Law. Abs. 197
CourtOhio Court of Appeals
DecidedJanuary 27, 1943
DocketNo. 3510
StatusPublished
Cited by12 cases

This text of 52 N.E.2d 651 (Pestel Milk Co. v. Model Dairy Products Co.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pestel Milk Co. v. Model Dairy Products Co., 52 N.E.2d 651, 39 Ohio Law. Abs. 197 (Ohio Ct. App. 1943).

Opinions

[199]*199OPINION

By GEIGER, P. J.

This is an appeal on questions of law from a decision of the Court of Common Pleas of Franklin county which, after having heard the issues and having stated in writing its conclusions of fact separate from conclusions of law, ordered that the restraining order granted in said cause be dissolved, and that the petition and supplemental petition be dismissed.

Notice of appeal was given on questions of law.

We will state the issues as briefly as possible. The pleadings are numerous and voluminous.

The plaintiff, a partnership, is, and has been engaged for ten years in the business of buying and distributing and dealing in milk and its products in the city of Columbus.

Defendant, Model Dairy Products Company, -is a corporation and a competitor of the plaintiff in the milk business.

On September 30, 1940, plaintiff, for a valuable consideration, purchased the assets of the Corbin Brothers Milk Company, including all contracts with route men of the said Corbin Company, a partnership. Said company had been engaged in the milk business in the city of Columbus for more than a quarter of a century and had built up and established a valuable business and patronage, which constituted the main consideration for the purchase by plaintiff, and to preserve which the plaintiff has continued to operate, with Corbin Brothers as a separate branch.

The defendant, Carl E. Burns, had been in the employ of the Corbin Company for many years, as route salesman, and the defendant, Cloyd M. Dillon, has been in the employ of said Corbin Company for several years, as a route salesman, in consequence of which defendants, Burns and Dillon, acquired an intimate and confidential knowledge of the trade practices and good will of the customers, lists of which were kept in books belonging to the said Cor-bin Company. At the time of the purchase by the plaintiff, defendants Burns and Dillon were employed by the Corbin Company as route salesmen and each had agreed, in writing, not to engage in any way in any kind of dairy product business or employment, for himself or any one else, without said company’s written permission, nor to solicit any of the customers or patronage of said Corbin Brothers while employed by said company or for six months thereafter, and further agreed not to give to others the names of customers served by him for said Corbin Milk Company while employed by said company or six months thereafter. It is alleged that said .defendants Burns and Dillon, together with other route salesmen of the Corbin Company continued in the employ of the plaintiff, The Pestel Milk Company, in- the same confidential capacities in serving the same routes which they had previously served for the Corbin Company until March 31, 1941, when the defendants Burns and Dillon, despite [200]*200previous assurances by each to the plaintiff to the contrary, failed to report for duty, failed to take out and operate their routes and entered the employ of the defendant. The Model Dairy Products Company, and have since continued to serve plaintiff’s customers on the said routes with milk and products of the Model Dairy Products Company.

It is alleged' that the Model Dairy Products Company and its officers, following the purchase by plaintiff of the business of the Corbin Company, with the purpose and intention of unlawfully appropriating the good will purchased by plaintiff, began systematically to solicit Burns and Dillon and other employees of plaintiff operating said Corbin branch route, to leave the employ of the plaintiff, and to divert its customers to the defendant, The Model Dairy Products Company, offering to pay them an increase in salary. It is alleged that defendants, Burns and Dillon, while in the conffidential employ of the plaintiff, together with other named defendants, employees of the Model Dairy Company, conspired to divert to that company the customers of the Corbin Milk Company purchased by plaintiff, and in furtherance of said conspiracy, said Burns and Dillon, while yet in the confidential employment of the plaintiff, did-solicit the customers on their said routes to go with them to the Model Dairy Company, and did falsely represent to the customers that said Corbin Brothers Milk Company was no longer in operation, and that Burns and Dillon in furtherance of the conspiracy by disrupting the operation by the plaintiff of the Corbin Brothers Miik route did falsely represent and promise to the plaintiff, as late as March 29,.1941, that they had no intention of leaving its employ and that they .would report for work Monday morning, March 31, 1941. In furtherance of said conspiracy to accomplish the purpose, on March 31,1941, defendants, Burns and Dillon failed to report for duty or to operate the routes and entered the employment of the Model Dairy Company and by use of confidential knowledge have diverted many of said customers to the Model Dairy Company,- to the damage of the plaintiff in the sum of $10,000.00, for which recovery is asked, and plaintiffs pray that the Model Dairy Company and certain other defendants be enjoined from directly or indirectly employing Burns and Dillon; that Burns and Dillon be enjoined from soliciting customers for the Model Company and from adversely influencing, any of the customers of the plaintiff and from using confidential information, and that a temporary restraining order be issued.

Later a supplemental petition was filed, alleging that certain officers of the Model Dairy Company, following the purchase by the plaintiff of the good will of the Corbin Company, with the intention of unfairly and unlawfully appropriating the entire good will and business purchased by the plaintiff, began systematically to contact and solicit Burns and Dillon and all the other emplbyees of the plaintiff operating said Corbin Brothers branch routes to leave the [201]*201employ of the plaintiff and to divert its patronage and good will to the defendant, The Model Dairy Products Company, offering to pay them an increase in salary.

Plaintiff makes certain other allegations touching the conduct of various individuals whom it charges with the purpose of diverting to the Model Dairy Company diverting to the Model Dairy Company the business and customers belonging to the plaintiff and to the Corbin Company at the time it purchased the business and property of said Corbin Company. It prays judgment •against the Model Dairy Company and certain named individuals in the sum of $10,000.00, as prayed in the original petition, and for the further sum of S5000.00 and for restraining orders.

The Model Dairy Company, together with certain of its officers, filed an amended answer, admitting certain formal matters; that ■on or about March 31, 1941, the defendants, Burns and Dillon, entered into the employ of the Model Dairy Products Company. They ■deny all other allegations.

Burns and Dillon filed an amended joint answer in which they ■admit certain formal matters; that they were formerly employed by the Corbin Milk Company, and that they each signed a route salesmen agreement with the Corbin Milk Company, and that they worked for that company and the Pestel Milk Company, but deny •■all other allegations.

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Bluebook (online)
52 N.E.2d 651, 39 Ohio Law. Abs. 197, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pestel-milk-co-v-model-dairy-products-co-ohioctapp-1943.