Wesley-Jessen, Inc. v. Armento

519 F. Supp. 1352, 1981 U.S. Dist. LEXIS 13263
CourtDistrict Court, N.D. Georgia
DecidedAugust 14, 1981
DocketCiv. A. C81-1158A
StatusPublished
Cited by11 cases

This text of 519 F. Supp. 1352 (Wesley-Jessen, Inc. v. Armento) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wesley-Jessen, Inc. v. Armento, 519 F. Supp. 1352, 1981 U.S. Dist. LEXIS 13263 (N.D. Ga. 1981).

Opinion

ORDER

ROBERT H. HALL, District Judge.

Plaintiff seeks injunctive relief and damages against defendant, a former employee, for violation of various clauses of the defendant’s employment contract with the *1355 plaintiff. The complaint sets forth three claims: that the defendant breached a covenant of non-competition; that after his termination the defendant retained confidential business records that were the plaintiff’s property; and that the defendant breached, or would breach an agreement not to disclose confidential business information of the plaintiff. The defendant counterclaimed for monies he claimed the plaintiff owed him at the time of the termination of his employment relationship with the plaintiff.

Jurisdiction is predicated on diversity of citizenship, 28 U.S.C. § 1332 (1970).

On June 16, 1981, the court granted the plaintiff’s request for a temporary restraining order. A hearing on plaintiff’s motion for a preliminary injunction was held on June 26, at which time the court allowed the temporary restraining order to expire. For the reasons set forth below, preliminary injunctive relief is DENIED on all claims.

The standards for granting a preliminary injunction are well settled: The granting or denying of a preliminary injunction rests within the sound discretion of the district court. Clements Wire & Mfg. Co. v. N.L. R.B., 589 F.2d 894 (5th Cir. 1979); Johnson v. Radford, 449 F.2d 115 (5th Cir. 1971).

However, this discretion must be exercised in light of the four well established prerequisites for issuance of a preliminary injunction: (1) a substantial likelihood the plaintiff will prevail on the merits; (2) a substantial threat that the plaintiff will suffer irreparable injury if the injunction is not granted; (3) the threatened injury to the plaintiff must outweigh the threatened harm an injunction may cause the defendant and; (4) granting the .injunction will not disserve the public interest. Clements Wire & Mfg. Co. v. N.L.R.B., 589 F.2d 894 (5th Cir. 1979); Barrett v. Roberts, 551 F.2d 662 (5th Cir. 1977).

The burden of proof on each element rests with the movant, although the quantum of evidence necessary to carry that burden can fluctuate from element to element. On each of the prerequisite elements the sufficiency of the evidence presented is balanced by the court on a sliding scale: a much stronger showing on one or more of the necessary elements lessens the amount of proof required for the remaining elements. Texas v. Seatrain International, S.A., 518 F.2d 175 (5th Cir. 1975); Siff v. State Democratic Executive Committee, 500 F.2d 1307 (5th Cir. 1974). See, Canal Authority of the State of Florida v. Callaway, 489 F.2d 567 (5th Cir. 1974).

The following constitutes the court’s findings of fact and conclusions of law on plaintiff’s motions for preliminary injunctive relief. Rule 52, Fed.R.Civ.P.

FACTS

The plaintiff, a manufacturer of daily wear contact lenses, hired the defendant as a salesman in April, 1979. The defendant had prior experience as an eyeglasses salesman. However, when the defendant was hired, the plaintiff provided about a month of training and instruction on contact lens mechanics and the plaintiff’s own business methods.

The defendant resigned his position on April 13, 1981, effective April 20, 1981. By April 20th, the defendant was already at work as a salesman for Cooper Vision, Inc., a maker of extended wear contact lenses. Daily wear and extended wear contact lenses are competing products in the eyecare industry. Ail the defendant’s sales territory for Cooper Vision is territory he had formerly covered for the plaintiff, including the City of Atlanta and environs. The defendant has been actively and successfully covering this territory for his new employer.

At the time he tendered his resignation the defendant had possession of a car, a sales manual, a movie projector and promotional movies, promotional brochures, and at least four different types of computer generated customer lists and sales reports covering various months. All these items were property of the plaintiff. The car, the movie projector, and some of the other items were returned in April shortly after defendant’s resignation. Other items were *1356 returned only after the present litigation began. Some items, including customer lists and credit information on each customer were never returned. The defendant testified that the unreturned material was destroyed or thrown out.

Each of the plaintiff’s three claims for injunctive relief is separately discussed. Although all four prerequisites for a preliminary injunction were considered, in this discussion the court focuses primarily on the plaintiff’s likelihood of prevailing on the merits.

COVENANT NOT TO COMPETE

The central issue for both parties in this case is whether the defendant will be found in violation of his agreement not to compete. In essence, the non-competition covenant calls for a 300 day period during which the defendant will not compete with the plaintiff in selling or training others to sell contact lenses within twenty-five miles of Atlanta. In pertinent part the agreement states:

5. [T]he Employee agrees that for a period of 300 calendar days from date of such termination, within the geographic area hereinafter defined:
(a) Employee will not directly or indirectly engage in any of the activities described in 1(a) and 1(b) above,
and/or
(b) Employee will not directly or indirectly recruit, train, supervise or assist others to engage in any of the activities described in 1(a) and 1(b) above....
7. The Employee agrees that in the event Employer is required to resort to court action to enforce its rights hereunder, the foregoing restrictive time period shall be extended for a period of 300 calendar days from the date of any final order of the court enforcing this Agreement.

The activities described in paragraph one are:

(a) To contact opticians, optometrists and ophthalmologists, hereinafter called “practitioners,” for the purpose of selling to them contact lenses and related products and services, and
(b) To provide and offer to provide to Practitioners assistance, advice and consultation with respect to contact lenses and related products and services, and

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Bluebook (online)
519 F. Supp. 1352, 1981 U.S. Dist. LEXIS 13263, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wesley-jessen-inc-v-armento-gand-1981.