Schlumberger Well Services v. Blaker

623 F. Supp. 1310, 1985 U.S. Dist. LEXIS 23189
CourtDistrict Court, S.D. Indiana
DecidedJanuary 23, 1985
DocketEV 84-262-C
StatusPublished
Cited by3 cases

This text of 623 F. Supp. 1310 (Schlumberger Well Services v. Blaker) is published on Counsel Stack Legal Research, covering District Court, S.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schlumberger Well Services v. Blaker, 623 F. Supp. 1310, 1985 U.S. Dist. LEXIS 23189 (S.D. Ind. 1985).

Opinion

MEMORANDUM ORDER

BROOKS, District Judge.

This matter came before the Court on October 5, 1984 on the plaintiff’s, Schlumberger Well Services (hereinafter Schlumberger), complaint for injunctive and declaratory relief against the defendants, Jerry G. Blaker (hereinafter Blaker) and BPB Instruments, Inc. (hereinafter BPB). Schlumberger in its claim for relief against the defendants seeks to enforce certain provisions of an employment agreement entered into by Blaker on October 15, 1969 and to restrain BPB from employing Blaker for a period of two (2) years from March 1, 1984. Jurisdiction of this court is predicated upon diversity of citizenship, 28 U.S.C. § 1332(a).

On October 11, 1984 the Court conducted a hearing on Schlumberger’s request for a temporary restraining order. After considering the arguments presented, the Court found that the potential hardship to Blaker if the restraining order was granted outweighed the threatened harm to Schlumberger from Blaker’s continued employ *1311 ment by BPB and accordingly denied Schlumberger’s request for a temporary restraining order. Thereafter, on October 25, 26 and November 8, 1984 the Court heard evidence and argument on Schlumberger’s motion for preliminary and permanent injunctive relief. At the conclusion of the hearing the parties indicated that they wished to submit post-hearing briefs, which have now been submitted, and the Court now deems the matter ripe for ruling. This memorandum constitutes this Court’s findings of fact and conclusions of law for purposes of Federal Rules of Civil Procedure 52(a).

Plaintiff, Schlumberger, is a Texas corporation with its principal office in Houston, Texas. In addition to its Houston operation Schlumberger has numerous division and district offices as well as operating facilities all over the North American Continent. One of the principal areas of Schlumberger’s business is in well services including the wireline logging of oil and gas wells. As one of Schlumberger’s witnesses indicated at the hearing, Schlumberger endeavors to offer its services wherever a well is drilled. BPB is an English owned company who previously had been primarily involved in the evaluation of coal reserves but who has gradually expanded into the oil and gas wireline logging business. Presently BPB offers its logging services in the Illinois Basin area, Canada, and through a wholly owned subsidiary, in West Virginia. With respect to the wire-line logging business Schlumberger and BPB are competitors in certain limited geographical areas although, at least in the Illinois Basin area, neither company has a major share of the business.

Blaker has been employed since August 1, 1984 as Executive Vice President of BPB’s operations in the United States and Canada. As such, his responsibilities include the organization, management, and marketing of BPB’s wireline logging operations. He has no responsibilities with regard to BPB’s subsidiary in West Virginia, Allegheny Nuclear. Prior to being employed by BPB, Blaker was employed by Schlumberger. As a condition of his employment with Schlumberger, Blaker was required to execute an Employment Contract, dated October 15, 1969, the provisions of which Schlumberger now seeks to enforce. During his approximately fifteen (15) year employment with Schlumberger, Blaker was promoted from his initial position as a Junior Field Engineer, and held, among other jobs, positions as a Senior Field Engineer, Log Analyst, Sales Engineer, District Manager, Marketing Manager, Marketing Development Engineer, and Division Manager. His last position prior to being terminated by Schlumberger was as a Division Manager for the Rocky Mountain Division in Denver, Colorado. As a Division Manager, Blaker was responsible for overseeing Schlumberger’s wireline logging business in Colorado, New Mexico, Wyoming, Utah, Montana, and North and South Dakota.

On February 27, 1984 Blaker was advised that his employment with Schlumberger was being terminated and he was presented with a termination agreement and release to review and sign, which he did the same day. The agreement, while making reference to the 1969 Employment Contract with respect to Blaker’s continuing obligations, also provided for certain cash payments to be made to Blaker over a period of two (2) years as consideration for Blaker’s agreement to release Schlumberger from any and all claims which he might have against Schlumberger including claims arising under the Civil Rights Act, the Age Discrimination Act, or any other state or federal statute or regulation, and for his acknowledgement and acceptance of the payments as full compensation for any injury or damage suffered by him as a result of his employment with Schlumberger. Thereafter, Blaker began to seek other employment, and was subsequently hired by BPB.

Schlumberger then instituted this action seeking enforcement of the restrictive covenant contained in the 1969 employment agreement and enjoining Blaker’s continued employment with BPB for a period of two (2) years commencing March 1, 1984. *1312 The pertinent provisions of the employment contract on which Schlumberger relies provide as follows:

... Employee agrees that for a period of two (2) years following the date of termination of his employment with Company, he will not directly or indirectly engage in, assist, advise, carry on or be interested in, either on his own account or as a principal or agent, partner or shareholder, director, officer or employer of or consultant with any other person, firm or corporation, or otherwise, with respect to any activities which are similar to or in competition with those of Company:
(a) in a zone of 100 mile radius from the Company location or office where employee worked on the date of such termination, or
(b) in any other zone of 100 mile radius from a location or office where Company or its affiliates shall have, in the year preceding the date of such termination, done or is then doing such business.

It is Schlumberger’s position that Blaker reaffirmed the above restrictive covenant in return for valuable consideration when he executed the termination and release agreement in February, 1984; that during his employment with Schlumberger, Blaker was exposed to trade secrets, and other confidential and proprietary information which Schlumberger wishes to protect and which will inevitably be disclosed to BPB as a result of Blaker’s employment, and that such disclosure will result in irreparable harm to Schlumberger; and that the only practicable method of insuring against the use or disclosure of Schlumberger’s trade secrets or proprietary information is through enforcement of the restrictive covenant.

Blaker and BPB have raised several defenses to the enforcement of the restrictive covenant in this ease. First, they argue that the covenant is unduly restrictive in that it seeks to prevent Blaker from working in too large a geographical area. Second, it is contended that the employment agreement provided a procedure for waiver of enforcement of the restrictive covenant and that Schlumberger’s refusal to consent to such waiver was unreasonably withheld.

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Bluebook (online)
623 F. Supp. 1310, 1985 U.S. Dist. LEXIS 23189, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schlumberger-well-services-v-blaker-insd-1985.