Uarco Inc. v. Eastland

584 F. Supp. 1259, 1984 U.S. Dist. LEXIS 17209
CourtDistrict Court, D. Kansas
DecidedApril 26, 1984
DocketCiv. A. 84-2086
StatusPublished
Cited by9 cases

This text of 584 F. Supp. 1259 (Uarco Inc. v. Eastland) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Uarco Inc. v. Eastland, 584 F. Supp. 1259, 1984 U.S. Dist. LEXIS 17209 (D. Kan. 1984).

Opinion

MEMORANDUM AND ORDER

O’CONNOR, Chief Judge.

This matter is presently before the court on plaintiff’s request for preliminary injunction. A hearing was held on April 3, 1984. In light of the evidence and the briefs submitted by the parties, the court makes the following findings of fact and conclusions of law.

*1260 Findings of Fact

1. Plaintiff is a corporation with offices nationwide and conducts the business of designing, manufacturing, selling, and distributing standard and custom business forms.

2. Defendant Gerald Eastland was employed by plaintiff as a sales representative, and later as an account representative, from November 1963 to January 26, 1984, on which date he voluntarily resigned from his employment with plaintiff.

3. Defendant Glenn S. Martin was employed by plaintiff as a sales representative, and later as an account representative, from February 1965 to January 26, 1984, on which date he voluntarily resigned from his employment with plaintiff.

4. Defendants Eastland and Martin received training from plaintiff at various times during their employment. This training included business form design, sales strategies, and information on new products. In addition to this training and education, plaintiff provided defendants East-land and Martin with confidential information concerning plaintiff's customers and customers’ business form needs.

5. Plaintiff assigns its sales and account representatives to certain customers, on whom they call to solicit sales of plaintiff’s business form products. Each sales and account representative receives a “confidential customer list” containing the names and addresses of those customers he has been assigned to call on. Generally, only one representative calls on a particular customer. The “confidential customer lists” are updated quarterly.

6. While employed by plaintiff, defendants Eastland and Martin each received “confidential customer lists.”

7. A close personal relationship is formed between a sales or account representative and each customer assigned to that representative by plaintiff. A relationship of trust and confidence develops between the customer and the representative. The representative works closely with the customer to learn the customer’s business form needs and equipment, computer or otherwise, with which the forms will be used. The sales or account representative also keeps the customer supplied with the necessary forms.

8. Defendant Eastland executed a written employment contract with plaintiff on February 1, 1983, in the state of Kansas. (Plaintiff’s Exhibit 1.)

9. Defendant Martin executed a written employment contract with plaintiff on January 26, 1980, in the state of Kansas. (Plaintiff’s Exhibit 5.)

• 10. On February 1, 1983, defendant Eastland’s base salary was increased in consideration of his execution of the written salesman’s agreement on that day. His base salary was increased retroactively to January 1, 1983.

11. The written salesman’s agreements executed by defendant Eastland and Martin are identical, and paragraph 9 thereof provides:

9. For a period of two years following the termination of his employment for any reason whatsoever (or if this period shall be unenforceable by law, then for such period as shall be enforceable), Salesman agrees that he will not contact, with a view toward selling any product competitive with any product sold or proposed to be sold by Company at the time of the termination or proposed to be sold by Company at the time of the termination of Salesman’s employment, or sell any such product to, any person, firm, association or corporation:
(a) to which Salesman sold any product of Company during the year preceding the termination of Salesman’s employment;
(b) which Salesman solicited, contacted, or otherwise dealt with on behalf of Company during the year preceding termination of Salesman’s employment;
(c) which is known by Salesman to have been a customer of Company during the year preceding termination of Salesman’s employment and which is *1261 located either within the geographical territory served by any District Office of Company to which Salesman was assigned during such year or within the same metropolitan area as any customer named in the Confidential Customer List in effect hereunder as of the date of termination of Salesman’s employment.
Salesman agrees that he will not directly or indirectly make any such contact or sale either for the benefit of himself or for the benefit of any other person, firm, association or corporation, and further that he will not in any manner assist any person, firm, association or corporation to make any such contact or sale.

It is on the basis of this paragraph that the plaintiff has commenced the present lawsuit.

12. Since the termination of his employment with plaintiff, defendant Eastland has contacted with the view toward selling, or has sold, products competitive to plaintiff’s products to Blue Cross of Kansas City, in his own name and through defendant Markee, Inc.

13. Since the termination of his employment with plaintiff, defendant Martin has contacted with the view toward selling, or has sold, products competitive to plaintiff’s products to United Missouri Bank of Kansas City, Traders Bank, and Midwest Data Processing, in his own name and under the name “Control Business Forms.”

14. Plaintiff presently services between 2,000 and 2,500 established customer accounts in its Kansas City District.

15. There are over 5,000 other potential customers of business forms in plaintiff’s Kansas City district who are not presently serviced by plaintiff.

. Conclusions of Law

Plaintiff seeks relief in the form of a preliminary injunction prohibiting the defendants from breaching the non-competition clause in their contracts with plaintiff.

The standards governing a motion for a preliminary injunction were discussed by the Tenth Circuit Court of Appeals in Lundgrin v. Claytor, 619 F.2d 61, 63 (10th Cir.1980), wherein the court stated that the moving party must establish four prerequisites:

(1) Substantial likelihood that the movant will eventually prevail on the merits;
(2) A showing that the movant will suffer irreparable injury unless the injunction issues;
(3) Proof that the threatened injury to the movant outweighs whatever damage the proposed injunction may cause the opposing parties; and
(4) A showing that the injunction, if issued, would not be adverse to the public interest.

(Citations omitted.)

Thus, we can grant the requested injunction only if the plaintiff establishes existence of these four elements.

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Bluebook (online)
584 F. Supp. 1259, 1984 U.S. Dist. LEXIS 17209, Counsel Stack Legal Research, https://law.counselstack.com/opinion/uarco-inc-v-eastland-ksd-1984.