Robert's Hair Designers, Inc. v. Pearson

780 N.E.2d 858, 2002 Ind. App. LEXIS 2200, 2002 WL 31898111
CourtIndiana Court of Appeals
DecidedDecember 31, 2002
Docket49A04-0208-CV-401
StatusPublished
Cited by32 cases

This text of 780 N.E.2d 858 (Robert's Hair Designers, Inc. v. Pearson) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Robert's Hair Designers, Inc. v. Pearson, 780 N.E.2d 858, 2002 Ind. App. LEXIS 2200, 2002 WL 31898111 (Ind. Ct. App. 2002).

Opinion

OPINION

SHARPNACK, Judge.

Robert's Hair Designers, Inc., d/b/a Robert's Salon & Day Spa (Robert's Salon" or "Salon"), appeals the trial court's denial of its motion for a preliminary injunction against Dana Pearson and Jane Walsh. Robert's Salon raises five issues, which we consolidate and restate as:

*861 I. Whether the trial court's conclusion that Robert's Salon was unable to demonstrate irreparable harm is clearly erroneous;
II. Whether the trial court's conclusion that the threatened injury to Pearson and Walsh by granting a preliminary injunction outweighed any potential harm to Robert's Salon is clearly erroneous; and
III. Whether the trial court's conclusion that the public interest would be disserved by the grant of a preliminary injunction is clearly erroneous.

We reverse and remand.

The relevant facts follow. Robert's Salon is a salon and spa in Greenwood, Indiana, that provides a variety of services, including hair styling, massage, cosmetics, and manicure services. The salon employs approximately eighty employees, including forty hair stylists, fourteen receptionists, a general manager, and an assistant manager. Pearson and Walsh were employed at the salon as hair stylists for sixteen years and thirteen years, respectively.

In January of 2002, Pearson and Walsh each signed a "Confidentiality, Non-Solicitation and Non-Compete Agreement," which provided in pertinent part:

III RESTRICTIVE COVENANTS
A. Non-Competition. During the Restricted Period, Employee SHALL NOT, directly or indirectly, perform on behalf of any Competitor of the Employer the same or similar services as those Employee performed for the Employer during the twelve (12) month period immediately preceding the termination of Employee's employment. The non-competition restriction set forth in this paragraph shall apply to any location within eight (8) miles of the principal location of Employer, 899 Loews Boulevard, Greenwood, Indiana 46142.
B. Non-Solicitation. During the Restricted Period, Employee SHALL NOT contact or solicit any of Employer's Clients or Customers or any prospective Clients or Customers, which Clients or Customers are proprietary to the Employer, and with whom the Employee has had contact or solicited any time in the twelve (12) month period of time preceding the termination of Employee's employment, to (1) divert or influence or attempt to divert or influence any business of the Employer to a Competitor of the Employer, (2) market, distribute, sell or provide any products or services in competition with Employer or (8) otherwise interfere in any fashion with Employer's business or operations then being conducted by the Employer.
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IV. GENERAL PROVISIONS
A. Remedies. Upon any breach of this Agreement by Employee, Employer shall be entitled to each of the following remedies which shall be deemed cumulative:
1. Injunctive Relief Any violation by Employee of this Agreement will cause the Employer to suffer irreparable harm for which the Employer will not have an adequate remedy at law. Therefore, if Employee threatens to violate or violates any provision of this Agreement, the Employer shall be entitled to injunctive relief, including, but not limited to a temporary restraining order and/or a preliminary or permanent injunction to restrain or enjoin any violation or threatened violation of this Agree *862 ment. The Employer shall be entitled to immediate injunctive relief without notice and without the posting of any bond. The Employer's right to injunctive relief shall be in addition to, and not in lieu of, any other remedy that may be sought by Employer.
2, Damages. To the extent calculable, Employer shall be entitled to recover from Employee, monetary damages, including lost profits. For purposes of determining such damages, the parties agree that any gross profits earned by Employee's new employer as a direct or indirect result of any activity of Employee in violation of this Agreement shall be deemed "lost profits" of the Employer.

Appellant's Appendix at 213-214, 226-227. 1

In late 2001 and early 2002, Pearson and Walsh became dissatisfied with their employment at Robert's Salon. Both Pearson and Walsh began informing clients that they were considering leaving Robert's Salon. In July of 2002, Pearson and Walsh made arrangements to work as hair stylists for Design Lines Hair Salon ("Design Lines"), a salon within one-half of a mile of Robert's Salon. During the next two weeks, Pearson continued working at Robert's Salon and informed "every customer" that she was leaving Robert's Salon and would be working at Design Lines. Appellant's Appendix at 127. She told the customers that she would be pleased if they followed her. Pearson also telephoned customers to tell them that she was leaving Robert's Salon and that she was going to work at Design Lines. Walsh informed three or four customers a day that she was leaving Robert's Salon and would be working at Design Lines.

Pearson and Walsh left the employment of Robert's Salon on July 20, 2002. They started working at Design Lines the following week. Both Pearson and Walsh had appointments scheduled for their first day at Design Lines. Walsh admitted that almost all of her customers at Design Lines also had been her customers at Robert's Salon.

On August 6, 2002, Robert's Salon filed a complaint against Pearson and Walsh for injunctive relief and damages. The trial court issued a temporary restraining order on August 6, 2002, and set a hearing for August 15, 2002, regarding Robert's Salon's request for a preliminary injunction. After the preliminary injunction hearing, the trial court denied Robert's Salon's request for a preliminary injunction and issued the following findings of fact and conclusions thereon:

FINDINGS OF FACT

1. [Pearson and Walsh] were hair stylists for [Robert's Salon] for many years and were expected to develop client loyalty for [Robert's Salon] by providing excellent customer service and by developing a friendly client relationship.
2. -All stylists were required to execute a Confidentiality, Non-Solicitation and Non-Compete Agreement with a one-year, eight-mile covenant not to compete and a non-solicitation of client provision, among others.
*863 3. [Pearson and Walsh] terminated their employment with [Robert's Salon] and began working at Design Lines Hair Salon, a competing salon around the corner from [Robert's Salon].
4. [Robert's Salon's! revenues increased after [Pearson and Walsh] terminated their employment.

CONCLUSIONS OF LAW

1. Employment noncompetition agreements are in restraint of trade and not favored by the law.
2.

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Bluebook (online)
780 N.E.2d 858, 2002 Ind. App. LEXIS 2200, 2002 WL 31898111, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roberts-hair-designers-inc-v-pearson-indctapp-2002.