Triple D & E, Inc. v. Van Buren

72 Misc. 2d 569, 339 N.Y.S.2d 821, 1972 N.Y. Misc. LEXIS 1399
CourtNew York Supreme Court
DecidedNovember 3, 1972
StatusPublished
Cited by13 cases

This text of 72 Misc. 2d 569 (Triple D & E, Inc. v. Van Buren) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Triple D & E, Inc. v. Van Buren, 72 Misc. 2d 569, 339 N.Y.S.2d 821, 1972 N.Y. Misc. LEXIS 1399 (N.Y. Super. Ct. 1972).

Opinion

Joseph Life, J.

These are two actions which Mr. Justice Joseph A. Suozzi in an order made July 18, 1972 directed to be tried jointly for the reason that they involved “ substantially the same issues of law and fact.” After an extended trial nothing was presented to alter that conclusion. In denying the application of plaintiff in each case for a preliminary injunction, Mr. Justice Suozzi said: ‘ There is a factual dispute with respect to the agreement containing the restrictive covenant. Moreover, it appears to this Court that plaintiff is merely a lessor of equipment and supplier of goods. There is little or no evidence that it produced, through its efforts, the only items of value referable to the injunction sought, i.e., the customer list and good will. [570]*570On the other hand, it would seem from the papers before this Court that both resulted from the efforts of defendant. (See Eeldmcm v. Douglas, 33 A. D. 2d 695.) ”

Each of the plaintiffs is engaged in “ industrial catering.” The management of the two companies is the same, the principals of Triple D & E Inc. (hereinafter referred to as Triple D & E) having acquired the assets of D & E Industrial Catering Inc. (hereinafter referred to as D & E). Industrial catering is an operation which has become familiar to us who have frequently seen these “ catering ” trucks halted at various locations throughout the county dispensing food and beverages to employees in office buildings, industrial plants, construction sites, places of public gathering, etc., etc.

The agreements on which plaintiffs rely were prepared on the same form and they are identical except for a very few items. Van Burén made his engagement with Triple D & E. Antinozzi had been employed by D & E when the ownership of that company was in different hands and continued as an employee after the assets, liabilities, etc. of D & E were acquired by the principals of Triple D & E: Still later his arrangement was altered so that he became what the company described as a “ contractor-distributor or contractor” (plaintiffs’ Exhibits 2 & 18).

The defendants urge that the exhibits (2 & 18) are not the agreements signed by them. They do not dispute their signatures but assert that items which are written into the two documents were inserted without their consent and after they had affixed their signatures. There is support in the record for their contention. For illustration, in Mr. Van Burén’s form contract the title of the company was altered and where it had been prepared for D & E the word Triple ” was inked in. This was in keeping with the company’s express policy that once it had acquired the assets of D & E all new contracts were made with Triple D $ E. Also, Antinozzi asserts that when he made his contract in January, 1965 he was paying less than the figures of $8 and $12 which appear in the appropriate blank spaces in paragraph 2, .subdivisions (h) and (i) of Exhibit 18.

In the restrictive covenant (par. 8) which describes the area to which that restraint applies, both contracts have the typewritten 5,000 feet, but in Van Burén’s contract it is altered in ink to 500 feet. He says that that was not in the contract when he signed it. Antinozzi’s claim is supported by the fact that paragraph 15 provides that the truck and route rentals shall never be increased beyond $20. That provision would be meaningless if it were $20 when the contract was made. Mr. John [571]*571De Rosa, secretary of the plaintiff, testified that in 1968 or 1969 when the company was engaged in negotiations. with another company, he inserted in certain of the contracts the names and addresses of contractors.

The company owned a number of industrial catering trucks. The garage (referred to as a “ bam ” by the parties) where the trucks were housed, included a commissary, storeroom and the facilities necessary to the operation of the "business. The agreements recited that the company had established various catering routes along which beverages, food products, tobacco, etc., etc., were sold and that the company had established “ a valuable trade and good will ” which represented an “ expenditure of time, energy and money ” by the company. The contractor undertook to sell the company’s merchandise exclusively on the route and the stops shown on the “ Exhibit A ” annexed to the agreement “ and at such other places, routes and stops as company may from time to time in writing approve and consent to.” The exhibit in each instance was not annexed to the contract although it was shown to the contractor when he entered into the arrangement. The route and the stops had been established by the plaintiff and its management, by prior employees or contractors, and in some instances had been acquired from another company.

The contractor was to pay the prices on the “ Company’s current price list ”, the company reserving to itself the right to change the price or prices as “need ” required. This arrangement which afforded no remedy to the contractor by review, arbitration, etc., resulted in the contract being deficient in a vital area and thus it was incomplete and unenforceable (55 N". Y. Jur., Specific Performance, § 19).

The contractor undertook to devote his full time to the operation; to make regular sales and distribution of the company’s products at scheduled times; to purchase all of his requirements from the company and to purchase nothing from anyone other than the company except with the company’s written permission. He "was'to furnish the company a list of the stops each week and to procure whatever individual permits were necessary. The company would secure and pay for all other necessary permits including license plates and insurance for the truck. The company was to maintain the truck except where repairs were necessary as a result of the contractor’s negligence, in which case the contractor was to pay. The contract contained a provision that in the event of a breakdown of the truck the company would endeavor to furnish another one. The contractor agreed to wear [572]*572uniforms or other clothing as prescribed by the company which were to be rented by the contractor from the company and maintained by the contractor. The contractor obligated himself not to divulge to others any information concerning the company’s stops, customers, etc. where these were turned over to him or acquired from the company; and then the agreement contained the following restrictive covenant: 8. The Contractor agrees not to carry or be engaged or in any manner concerned or interested, directly or indirectly for a period of one (1) year after the termination of his contract, in the sale, solicitation for sale or distribution of products that are similar or competitive to Company’s at any place within a radius of five hundred (500) feet from any stop or location served by him while under contract with the Company, or within a distance of five hundred (500) feotBKMiij<(^a@&S:)cfeet in every direction from any plant, factory, store, office, operation institution or other place of business or of industry or of human activity adjacent to or formerly served by him from any such stop or location. ’ ’ (The changes which the court has indicated in the foregoing did not appear in Mr. Antinozzi’s agreement, which was left at 5,000 feet.)

The agreement provided that the goodwill of the routes and stops as they existed initially or changed from time to time were the company’s property. Other clauses of the agreement were repetitious. One clause described the route and stops as a trade secret.

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Bluebook (online)
72 Misc. 2d 569, 339 N.Y.S.2d 821, 1972 N.Y. Misc. LEXIS 1399, Counsel Stack Legal Research, https://law.counselstack.com/opinion/triple-d-e-inc-v-van-buren-nysupct-1972.