TEXAS ROAD BORING CO. OF LOUISIANA-MISS. v. Parker

194 So. 2d 885
CourtMississippi Supreme Court
DecidedFebruary 20, 1967
Docket44216
StatusPublished
Cited by21 cases

This text of 194 So. 2d 885 (TEXAS ROAD BORING CO. OF LOUISIANA-MISS. v. Parker) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
TEXAS ROAD BORING CO. OF LOUISIANA-MISS. v. Parker, 194 So. 2d 885 (Mich. 1967).

Opinion

194 So.2d 885 (1967)

TEXAS ROAD BORING COMPANY OF LOUISIANA-MISSISSIPPI, Complainant-Appellant,
v.
George R. PARKER, Jr., Defendant-Appellee.

No. 44216.

Supreme Court of Mississippi.

January 30, 1967.
Suggestion of Error Overruled February 20, 1967.

Erskine W. Wells, Charles Ray Davis, Wells, Thomas & Wells, Jackson, for appellant.

Howard C. Ross, Jr., Jackson, for appellee.

PATTERSON, Justice:

This is an appeal by Texas Road Boring Company of Louisiana-Mississippi from a decree of the Chancery Court of the First Judicial District of Hinds County dismissing the bill of complaint filed by appellant which sought to enjoin the appellee from engaging in certain activities which, it was alleged, would be contrary to certain restrictive covenants in an employment contract executed between the appellant and the appellee.

*886 In March 1965 the appellee, hereinafter referred to as Parker, went to Houston, Texas and talked to Mr. Gilbert Turner, the president of the appellant corporation, hereinafter referred to as Texas Road Boring Company, about employment with the corporation. Parker was advised that if he enentered into the appellant's hire it would be necessary for him to agree to an employment non-competition covenant not to compete with the Texas Road Boring Company within the territory where Parker would work for such company for a period of two years after the termination of employment. The territorial limits of the covenant were "within a radius of one hundred miles of any city, town or village in the United States in which employee has worked for employer." This type covenant was required by the appellant from all of its managerial or supervisory employees because of the nature of the appellant's work.

Subsequently, at a conference had between the president of Texas Road Boring Company, Parker, and the division manager of the Louisiana-Mississippi Division of Texas Road Boring Company, who was an uncle of Parker, it was agreed that Parker would go to work for Texas Road Boring Company as assistant division manager of the Louisiana-Mississippi Division, and that initially he would work under the supervision of his uncle in Louisiana. The employment began on March 15, 1965, and as contemplated, Parker worked under the supervision of his uncle in and out of the Baton Rouge office, learning the methods and techniques of the horizontal boring business as well as about the equipment used.

The Texas company desired, however, to increase its operation within the state of Mississippi and to that end the appellee moved to Jackson, Mississippi, where he became the resident manager for operations within this state. A telephone listed in the name of "Texas Road Boring Company of Louisiana-Mississippi" was installed for Parker; arrangements were made for telephone answering service; an advertisement was run in the trade paper, "Daily Journal of Commerce," which had a general circulation in the state, announcing that Texas Road Boring Company was opening an office in Mississippi with Parker in charge. Parker was also provided with a list of customers with whom Texas had previously done business within the state.

The restrictive covenant was signed by Parker on April 1, 1965, pursuant to the former conversations in regard thereto, and he began the promotion of and engaged in the horizontal boring business in accord with the policies of Texas Road Boring Company. These activities included contacting a large number of persons, city officials, highway officials, heads of city water departments and contractors. The expense of contacting these officials, including favors for them, dinners, football tickets, etc., to court their goodwill was borne by his employer. Parker's efforts in obtaining business were successful. The record reflects that he performed horizontal boring jobs in forty-eight different cities, towns and villages within the state. Parker, according to his testimony, was the person who contacted the various contractors and officials in this effort to obtain business and with slight exception was the person actually responsible for obtaining contracts for boring jobs and in supervising them to completion. In addition to the municipalities where work was actually performed, Parker also worked on behalf of Texas Road Boring Company in contacting the proper authorities as prospective customers in numerous other municipalities.

Parker voluntarily terminated his employment with the Texas Road Boring Company on January 11, 1966. Prior to terminating his services, however, he had a portion of appellant's boring equipment duplicated at a foundry in Jackson, Mississippi. Also, on January 13, 1966, a new Mississippi corporation entitled "Mississippi Road Boring & Tunneling Company, Inc." was organized with Parker as its president. The articles of incorporation were actually signed on January 12, 1966, one day after Parker terminated his employment with *887 the Texas Road Boring Company. Shortly after this organization, the new corporation ran advertisements in the Daily Journal of Commerce which read as follows:

GEORGE PARKER (formerly of Texas Road Boring Co.) Announces the formation of MISSISSIPPI ROAD BORING AND TUNNELING, INC. with headquarters in Jackson, Miss. Phone 366-1896 P.O. Box 9994.

By way of further advertisement the new corporation was listed in the yellow pages of the Jackson telephone directory as "Mississippi Road Boring & Tunneling Co., Inc." giving Parker's address. Parker also mailed letters announcing the formation of his new company to various contractors and officials including those whom he had previously met while promoting the business of Texas Road Boring Company.

At the time Parker terminated his employment, a drilling rig foreman who had worked with Parker, and his entire crew, likewise terminated their employment with Texas Road Boring Company and began working for Parker's new corporation. Though denied by Parker, there was testimony to the effect that he contacted other personnel of his former employer and offered them employment with the new corporation.

Texas Road Boring Company filed suit to restrain Parker from competing with complainant, relying on the terms of the employment agreement. The restrictive portion thereof is as follows:

It is expressly understood that part of the consideration for the execution of this agreement is that for two (2) years following the termination of his employment with Employer, regardless of how such termination is brought about, he, Employee, will not engage in the business of boring, digging, or drilling horizontal holes or tunnels in the earth, either as a partner, principal, employee, stockholder, or otherwise, within a radius of 100 miles of any city, town, or village in the United States in which Employee has worked for Employer, under the terms and conditions hereof and during the term of his employment by Employer; and Employee understands that this is a material part of this agreement, and that Employer would not have hired or employed him unless this condition is a part of this agreement.

After an extensive hearing, the chancellor found, in brief, as follows:

The evidence amply shows that the Defendant is now attempting to take advantage of the fact that he was once an assistant division manager of Complainant. He has contacted certain contractors personally and by mail advising them of his break with Complainant and of the new company he has formed.

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Bluebook (online)
194 So. 2d 885, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texas-road-boring-co-of-louisiana-miss-v-parker-miss-1967.