Peerless Oakland Laundry Co. v. Hickman

KAUFMAN, P. J.

This is an appeal by Sydney Hickman, a former employee of the respondent, Peerless Oakland Laundry Company, from a judgment enjoining him from soliciting and diverting the business of certain former customers of Peerless.

As grounds for reversal, the appellant contends that: (1) In the absence of an express enforceable contract, equity will not enjoin a former employee from competing fairly; (2) there is no evidence that his competition was unfair; (3) the evidence is insufficient to bring the case within the scope of the ‘1 delivery route’’’ cases; and, finally, (4) the respondent is not entitled to equitable relief, as respondent, did not come

[558]

into court with, “clean hands.” There is no merit in any of these contentions.

The trial court found that since 1930, respondent had been in the laundry and linen supply business in Oaldand which consisted of supplying linen products to various customers at various intervals; that respondent established valued and extensive trade in this business and had acquired a large number of customers, including restaurants, taverns, doctors, dentists and barber shops; that respondent regularly provided these customers with their linen product requirements by the establishment of various routes and delivery of products on scheduled days; that the customers of a linen supply business ordinarily patronize one concern and ordinarily obtain their linen supply requirements from one supplier and that the business relationship is such that it will normally continue until interfered with.

The court further found that in 1952, appellant was employed by the respondent as linen route supervisor and linen sales manager; that in the course of his employment, appellant acquired knowledge of the names and addresses of all of the respondent’s customers, as well as their requirements, peculiar likes and dislikes, and the degree of difficulty in meeting their requirements. Appellant also had access to records which indicated the route number, date of service and quantity of supplies required by each customer. As a part of appellant’s duties consisted of soliciting new customers for the respondent, directing respondent’s drivers and other employees, supervising the delivery and pick-ups, establishing and maintaining various routes and receiving and adjusting the complaints of the customers, appellant developed friendly contacts with the customers of Peerless. The court found all this information relating to the respondent’s customers was confidential and a trade secret.