Servomation Mathias, Inc. v. Englert

333 F. Supp. 9, 172 U.S.P.Q. (BNA) 65, 1971 U.S. Dist. LEXIS 10971
CourtDistrict Court, M.D. Pennsylvania
DecidedNovember 3, 1971
DocketCiv. A. 71-357
StatusPublished
Cited by4 cases

This text of 333 F. Supp. 9 (Servomation Mathias, Inc. v. Englert) is published on Counsel Stack Legal Research, covering District Court, M.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Servomation Mathias, Inc. v. Englert, 333 F. Supp. 9, 172 U.S.P.Q. (BNA) 65, 1971 U.S. Dist. LEXIS 10971 (M.D. Pa. 1971).

Opinion

OPINION

MUIR, District Judge.

This matter is before the Court on the application of Servomation Mathias, Inc. for a preliminary injunction against its former employee, Leonard L. Englert, restraining him from violating a provision of his employment contract in the nature of a covenant not to compete. Plaintiff initially sought a temporary restraining order enjoining Englert from revealing trade secrets and from performing services as dining hall manager at Mansfield State College, Mansfield, Pennsylvania for Mark Four Management Services, Inc., a corporation which, like plaintiff, is in the business of providing food service for institutions. On August 20, 1971, we refused to grant a temporary restraining order because plaintiff failed to satisfy us of the likelihood it would prevail on the merits and because it did not appear that plaintiff’s injury was either immediate or irreparable as required by F.R. Civ.P. 65(b). After a hearing on the preliminary injunction on September 2, 1971, and argument, and upon careful consideration of the briefs of both parties, the preliminary injunction is denied.

Jurisdiction is predicated upon 28 U. S.C. § 1332(a). Plaintiff is a Maryland corporation with its principal place of business located at Towson, Maryland, and defendant Leonard L. Englert is a citizen of Pennsylvania who resides in Mansfield, Tioga County, Pennsylvania. We find from the testimony on the preliminary injunction that the amount in controversy, exclusive of interest and costs, exceeds $10,000.

On March 5, 1969, Leonard L. Englert entered into a written employment contract 1 with Servomation Mathias, *11 Inc. under the terms of which he agreed to work for Servomation as a manager for $175.00 per week. Thereafter, Englert was employed by Servomation as a manager assigned to its operation at Marymount College, Boca Raton, Florida, until May 15, 1971, when he resigned.

For a period of approximately eleven years prior to May, 1971, Mansfield State College was a client of Servomation Mathias Pa., Inc. 2 In April, 1971, Mansfield State College notified Servomation Mathias Pa., Inc. of its intention to terminate the contract and to accept bids on a new contract. Servomation Mathias Pa., Inc. submitted a bid on the new contract, but on June 1, 1971, the contract was awarded to a competitor, Mark Four Management Services, Inc., several of whose officers and employees are former officers and employees of Servomation Mathias, Inc. and its subsidiaries. After resigning from Servomation Mathias, Inc., Englert accepted employment with Mark Four and was assigned to Mark Four’s operation at the dining hall at Mansfield State College.

On August 20, 1971, Servomation Mathias, Inc. instituted this action, predicating its right to injunctive relief 3 on the following provisions of Englert’s employment contract:

“In consideration of my employment by Servomation Mathias, Inc. in the capacity of Manager, at a salary of at least ONE HUNDRED AND SEVENTY FIVE Dollars ($175.00/xx) a week, effective 3/5/69, I hereby agree that I will not, for a period of one year after termination of my employment for any reason whatever, on my own behalf or on behalf of any other person, firm or corporation, carry on or be engaged in or in any way be concerned with the operation of or solicit the business of any cafeteria or food facility operated, serving or sponsored for its employees, guests, students, campers or patients by any person, firm or corporation who shall have been your client within the period of One .(1) year prior to the termination of my employment or with whom you may have been negotiating during my employment by you if I *12 have participated in such negotiations, directly or indirectly, or have had contact with them, directly or indirectly, in the course of my employment with you.”

Plaintiff contends this covenant prohibits Englert from working at the dining facilities of Mansfield State College because the College was a client of Servomation Mathias during the year prior to Englert’s resignation on May 15, 1971; in so doing, plaintiff ignores the final qualifying clause of the covenant which is fatal to that legal theory:

“* * * if I have participated in such negotiations, directly or indirectly, or have had contact with them, directly or indirectly, in the course of my employment with you.”

The most plaintiff can contend is that the final qualifying clause quoted above is ambiguous in its modification. Thus, the last part of the covenant, which defines the scope of the restrictions, can be analyzed into the following four components :

“I will not * * * carry on or be engaged in * * * the operation of * * * any cafeteria or food facility operated, serving or sponsored for its employees, guests, students, campers or patients by any person, firm or corporation
(a) who shall have been your client within the period of One (1) year prior to the termination of my employment

or

(b) with whom you may have been negotiating during my employment by you

if I

(c) have participated in such negotiations, directly or indirectly,
(d) have had contact with them, directly or indirectly, in the course of my employment with you.”

Since Englert neither participated in Servomation Mathias-Mansfield negotiations nor had contact with Mansfield State College during the course of his employment, plaintiff’s contention that the covenant applies would be correct only if neither clause (c) nor clause (d) qualifies clause (a). If clauses (c) and (d) do not qualify clause (a), they qualify clause (b) or nothing. Giving significance to both clauses, on plaintiff’s theory, requires they be interpreted as qualifying'clause (b). But the meaning of clause (d) includes within it the meaning of clause (c), since “participating in negotiations with X” is a specific instance of the more general concept of “having contact with X.” On plaintiff’s theory, then, clause (c) is redundant. It is hornbook law that in interpreting a written contract, all parts or sections of the writing and every sentence, clause, provision, phrase, and word in it should be given effect and meaning if possible without violating the plain language of the instrument and the clear purpose of the contracting parties. A construction rendering a provision, term or part meaningless or superfluous should be avoided. 4

In my opinion, the more reasonable interpretation of this artlessly drawn covenant is as follows:

(1) clause (c) qualifies clause (b), and
(2) clause (d) qualifies clause (a).

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333 F. Supp. 9, 172 U.S.P.Q. (BNA) 65, 1971 U.S. Dist. LEXIS 10971, Counsel Stack Legal Research, https://law.counselstack.com/opinion/servomation-mathias-inc-v-englert-pamd-1971.