United Board & Carton Corp. v. Britting

164 A.2d 824, 63 N.J. Super. 517
CourtNew Jersey Superior Court Appellate Division
DecidedMay 12, 1960
StatusPublished
Cited by31 cases

This text of 164 A.2d 824 (United Board & Carton Corp. v. Britting) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United Board & Carton Corp. v. Britting, 164 A.2d 824, 63 N.J. Super. 517 (N.J. Ct. App. 1960).

Opinion

63 N.J. Super. 517 (1959)
164 A.2d 824

UNITED BOARD & CARTON CORPORATION, A CORPORATION OF NEW JERSEY, PLAINTIFF,
v.
WILLIAM J. BRITTING, HOWARD V. BRITTING, ET AL., DEFENDANTS.

Superior Court of New Jersey, Chancery Division.

Decided August 3, 1959.
Affirmed May 12, 1960.

*518 Mr. Isadore Glauberman, attorney for plaintiff.

Mr. James A. Major argued the cause for defendants (Messrs. Rosenberg, Schmidt & Greenhalgh, attorneys).

Affirmed May 12, 1960, in 61 N.J. Super. 340.

KILKENNY, J.S.C.

Plaintiff sued to restrain the individual defendants, its former employees, and the corporate *519 defendant created by some of them, from soliciting from and doing business with those old customers of plaintiff, to whom the individual defendants had sold plaintiff's corrugated paper products, while they were in plaintiff's employ. In addition to a demand for an accounting, plaintiff also sought to compel the defendants to return to plaintiff's possession a large number of dies used in stamping customers' names on products manufactured by plaintiff for these customers, which dies the defendants had caused to be removed, without authority, from plaintiff's premises, in violation of its general property rights as owner of some of these dies, or its special property right therein as bailee of its customers.

The basis of the complaint was that the individual defendants, who had been employed for many years in making sales of plaintiff's corrugated paper products, as well as in selling for Densen Banner Company, Inc., from whom plaintiff acquired this corrugated paper business on January 1, 1954, had, while still in plaintiff's employ, and for several months prior to the termination of their employment relation with plaintiff, set up their own rival corporation in September 1958, in competition with the plaintiff, their employer, and had pirated a substantial part of plaintiff's corrugated business. And then, when they had wrongfully and by dishonorable methods enticed away many of plaintiff's best customers and had surreptitiously removed the customers' dies, all in violation of their duty of loyalty to their employer the plaintiff, the individual defendants resigned en masse in March 1959, a "target date" previously agreed upon by them. Thus, the plaintiff, having paid $3,998,000 to Densen Banner Co., as of January 1, 1954, for all the assets of this corrugated paper business — which price included about $1,700,000 in cash and bonds — found itself, without forewarning, bereft of its key sales personnel, with many of its principal customers stolen away by its trusted sales representatives while they were still employed by plaintiff, and with the dies of these customers covertly removed *520 from plaintiff's plant without the permission or knowledge of any officer of the plaintiff.

Based upon the pleadings, depositions, exhibits and testimony taken in open court, including the frank admissions of defendants under oath in their depositions, and in the testimony before the court by the defendant William J. Britting — the only defendant to testify at the court hearing — that the defendants had engaged in the double-dealing and divided loyalty charged against them, while still on plaintiff's payroll, a preliminary injunction was ordered.

As indicated in the order allowing the preliminary injunction, the court found from the evidence that the defendants William J. Britting, Howard V. Britting and Alexander A. Gaffney, while in the employ of the plaintiff, secretly incorporated a competing company, Carton Sales, Incorporated, about six months before their leaving the employment of the plaintiff; secretly diverted to the said Carton Sales, Incorporated, a large part of the business of the plaintiff; and lulled the plaintiff, during all this time, by also allowing a flow of some business of the same customers to plaintiff. It was found that they utilized their trusted position wrongfully to remove from the plaintiff's premises customers' dies, in which the plaintiff had general or special property rights. While employed and drawing compensation from the plaintiff, the individual defendants also worked in competition for the defendant Carton Sales, Incorporated. During the same period the main defendants, William J. Britting, Howard V. Britting and Gaffney, induced the other defendants, Morton H. Mass, William J. Keegan and Bruce L. Kirchenheiter, to divert business from the plaintiff to the defendant Carton Sales, Incorporated, while these defendants were also employed by plaintiff. The evidence further established that the said individual defendants, during the said period, conspired to keep their activities secret from plaintiff; that the said activities constituted acts of disloyalty to their employer, the plaintiff herein; that they formed a conspiracy through wrongful and improper *521 means to divert the plaintiff's customers to the defendant Carton Sales, Incorporated, and injure the plaintiff in its corrugated box business; and that they used confidential information gained by them, while in the employ of the plaintiff, in a wrongful and unfair competition with the plaintiff, all in violation of the duties they owed to the plaintiff. It further appeared to the court that unless a preliminary injunction was granted as prayed for in the complaint, irreparable loss, injury and damage would result to the plaintiff.

Therefore, it was ordered that the defendants, pending a final hearing, be and they are enjoined and restrained from continuing, directly or indirectly, from doing business with any customers of the plaintiff corporation as they appear on a certain list of plaintiff's customers, marked in evidence as Exhibit P-13, and from soliciting, directly or indirectly, any business from such customers, and from continuing in their possession or using any dies which were removed from the plaintiff's premises and for which written permission was not expressly given by former customers of the plaintiff; and that the defendants return forthwith to the plaintiff's premises all dies removed from the plaintiff's premises by the defendants or their agents, for which written permission was not expressly given by the former customers of the plaintiff.

While the defendants' attorney has petitioned the Appellate Division for leave to appeal the order granting the preliminary injunction, and has obtained until August 10, 1959 an ex parte ad interim stay of this injunction from a single judge temporarily assigned to the Appellate Division, both sides have, in writing, stipulated that the trial court shall render final judgment as to the injunctive phase of this case on the basis of the present proofs, and have waived further evidence or testimony, except as to the reserved issues of the accounting and other incidental relief, and the counterclaim, to be brought on for hearing in due course.

*522 Accordingly, I have reviewed the entire matter and conclude that the proofs require the same findings as those set forth above, which furnished the basis for the preliminary injunction. I am, therefore, granting a final judgment in favor of the plaintiff and against all the defendants, enjoining them in the same manner and to the same extent as set forth in the preliminary injunction. However, where that order provided a temporary injunction pending final hearing, the injunctive order in the final judgment will be made effective for a period of two years from the date of the final judgment.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bruce Kaye v. Alan P. Rosefielde (073353)
121 A.3d 862 (Supreme Court of New Jersey, 2015)
Lamorte Burns & Co., Inc. v. Walters
770 A.2d 1158 (Supreme Court of New Jersey, 2001)
Marsellis-Warner Corp. v. Rabens
51 F. Supp. 2d 508 (D. New Jersey, 1999)
Cameco, Inc. v. Gedicke
724 A.2d 783 (Supreme Court of New Jersey, 1999)
Value Pharmacy, Inc. v. Mason
7 Mass. L. Rptr. 515 (Massachusetts Superior Court, 1997)
Subcarrier Communications, Inc. v. Day
691 A.2d 876 (New Jersey Superior Court App Division, 1997)
Cameco, Inc. v. Gedicke
690 A.2d 1051 (New Jersey Superior Court App Division, 1997)
Platinum Management v. Dahms
666 A.2d 1028 (New Jersey Superior Court App Division, 1995)
Ilan-Gat Engineers, Ltd. v. Shelter Systems Corp.
879 F. Supp. 416 (D. New Jersey, 1994)
Trans American Trucking v. Ruane
641 A.2d 274 (New Jersey Superior Court App Division, 1994)
Chernow v. Reyes
570 A.2d 1282 (New Jersey Superior Court App Division, 1990)
Hydroaire, Inc. v. Sager
424 N.E.2d 719 (Appellate Court of Illinois, 1981)
Fish v. Adams
401 So. 2d 843 (District Court of Appeal of Florida, 1981)
Auxton Computer Enterprises, Inc. v. Parker
416 A.2d 952 (New Jersey Superior Court App Division, 1980)
ABC Trans National Transport, Inc. v. Aeronautics Forwarders, Inc.
379 N.E.2d 1228 (Appellate Court of Illinois, 1978)

Cite This Page — Counsel Stack

Bluebook (online)
164 A.2d 824, 63 N.J. Super. 517, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-board-carton-corp-v-britting-njsuperctappdiv-1960.