Whites v. Star Engraving Company

480 S.W.2d 757, 1972 Tex. App. LEXIS 3043
CourtCourt of Appeals of Texas
DecidedMay 11, 1972
Docket682
StatusPublished
Cited by7 cases

This text of 480 S.W.2d 757 (Whites v. Star Engraving Company) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Whites v. Star Engraving Company, 480 S.W.2d 757, 1972 Tex. App. LEXIS 3043 (Tex. Ct. App. 1972).

Opinion

OPINION

NYE, Chief Justice.

This is an appeal from an order granting a temporary injunction. A former employer, the appellee, brought suit against his former employee, the appellant, to enforce a restrictive non-competitive agreement. The trial court issued a temporary restraining order enjoining the appellant directly or indirectly, for himself or as an employee of any person, firm or corporation, from selling or soliciting orders for certain merchandise in twelve South Texas counties where he worked while employed by the appellee. After a hearing, the order was continued by the entry of a temporary injunction effective until a trial is had on the merits. The order provided, however, that should there be no trial upon the merits of this cause prior to August 8, 1972, the restraint therein ordered would cease and terminate. The court stated that it was of the opinion that it was necessary to issue the temporary injunction to preserve the status quo and to prevent irreparable injury and damage to the appellee. The court filed findings of fact and conclusions of law. We affirm the judgment and order of the trial court.

The appellant was employed by appellee in July 1967. At that time the parties entered into a written contract. It had a *759 non-competition clause, the relevant portions of which were as follows:

“20. In the event of termination of the employment of Party of the Second Part for any reason, Party of the Second Part expressly covenants and agrees that for a period of twelve (12) months after such termination he will not directly or indirectly, for himself, or as agent of, or on behalf of, or in conjunction with, any person, firm, association or corporation, sell or deliver or solicit orders for any goods, wares and merchandise of the kind or character sold or handled by Party of the First Part during the years covered by this contract or in any other manner participate in the sale or delivery thereof within the territory described in Paragraph 24 hereof.”

In the first paragraph of the contract the contract provided as follows :

“1. Party of the First Part, manufacturer of class rings, pins, invitations, personal cards, medals, diplomas, etc., hereby employs Party of the Second Part, and Party of the Second Part hereby agrees to work for and to devote his entire time and interests to Party of the First Part, for a period of five years from the date hereof, on the conditions hereinafter more fully set forth.”

As to the territory involved, the contract provided that:

“24. Specific outline of territory: Same territory as assigned to J. G. Mun-dy- — -specific outline of which is on file in the offices of Star Engraving Company. Mundy agrees to release the sale and earnings from year books, band uniforms, blazers, choir robe sales with the exception of year books at Weslaco, Odem and Zapata. Mundy agrees to release the sale of all items in all Catholic schools.
Whites and Price to work year books in Miller & Flour Bluff during 1967-68 school year and share the earned sales commission 50-50 — In future years Whites to receive all earned commission on these two schools provided we produce the year books.”

The appellant testified that a majority of his sales and solicitations covered year books and band uniforms. On less frequent occasions he sold and solicited orders for blazers, choir robes, rings, invitations, pins and the other items listed in paragraph “1” of the employment contract. It was undisputed that the appellant, during the time that he worked for the appellee, had at one time or another sold all of such items that were listed in paragraph “1” and paragraph “24” above referred to.

The evidence showed that the appellant worked about four of the five years specified in the contract. He sent in his letter of resignation on August 9, 1971. From the date of his letter of resignation until the suit was filed two weeks later (the date the appellant was served with the temporary restraining order) appellant had accepted employment from a competitor of the appellee and had solicited and obtained business from his old customers on behalf of his new employer. He admitted that during the said two-week period he had sold rings and/or year books to at least ten schools where he had for the same school year sold the same items for the appellee. On making the new sales he brought about the cancellation of contracts with appellee or its affiliates and obtained new sales contracts for his new employer.

At the conclusion of the trial, the trial court filed findings of fact and conclusions of law. The pertinent findings are as follows :

“The Court finds that:
4. The Star Engraving Company did furnish saleable merchandise to defendant Charles Franklin Whites, although on some very few occasions the merchandise sold was not as ordered.
*760 5. The contract between defendant Charles Franklin Whites and plaintiff defines the territory covered thereby with certainty except insofar as the Counties of Webb, Live Oak and San Patricio are concerned.
6. The contract between plaintiff and defendant Charles Franklin Whites was not executory in nature.
7. The items covered by the Court’s injunction include merchandise either manufactured by plaintiff or handled or procured by plaintiff, and all such items of merchandise were at one time or another during the term of the contract sold by defendant Charles Franklin Whites.
8. Defendant Charles Franklin Whites during the term of the contract between plaintiff and defendant was an employee of Star Engraving Company and was not an employee of any other company.”

The court concluded in part that:

“2. Defendant Charles Franklin Whites was not forced to resign his employment but did so voluntarily.
3. The territory covered by the contract between plaintiff and defendant Charles Franklin Whites was sufficiently defined by the provisions of the contract and the outline referred to therein.
4. Defendant Charles Franklin Whites was an employee of Star Engraving Company, only.”

An agreement by an employee not to compete with his employer after the termination of his employment is in restraint of trade.

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Bluebook (online)
480 S.W.2d 757, 1972 Tex. App. LEXIS 3043, Counsel Stack Legal Research, https://law.counselstack.com/opinion/whites-v-star-engraving-company-texapp-1972.