TaiLexi AI U.S. Case Law

E. L. Conwell and Company, a Delaware Corporation v. Charles H. Gutberlet, Jr., and the Arundel Corporation, a Maryland Corporation

E. L. CONWELL AND COMPANY, a Delaware Corporation, Appellant, v. Charles H. GUTBERLET, Jr., and the Arundel Corporation, a Maryland Corporation, Appellees

E. L. Conwell & Co., a Del. Corp. v. Gutberlet, 429 F.2d 527 (4th Cir. 1970)
Download
Format
Include

Star paging (*137) is kept for pin cites.

Court
Court of Appeals for the Fourth Circuit · U.S. Courts of Appeals
Decided
July 9, 1970
Docket
No. 13779_1
Judges
Sobeloff, Craven, Jones
Citations
429 F.2d 5271970 U.S. App. LEXIS 8243

Opinion — Per Curiam

PER CURIAM:

E. L. Conwell and Company brought an action to enjoin its employee, Charles H. Gutberlet, Jr., from accepting a job with The Arundel Corporation. Con-well based its action on a restrictive cov *528 enant in 'Gutberlet’s contract of employment, which provided that, Should your employment with us be terminated for any reason you will not accept employment with a competitor or client of ours nor engage in a competing business venture within 150 miles of Baltimore for a period of three years after the termination.

The District Judge denied Conwell’s claim for injunctive relief and dismissed the complaint. He assigned two reasons for this action: (1) the restrictive covenant was unduly prohibitive in that under its language Gutberlet would not be able to accept employment with any of Conwell’s clients at any time, and (2) that Gutberlet did not fall within the type of employment which Maryland would restrain in the enforcement of a restrictive covenant.

Concerning the first reason assigned by the District Judge for denying Conwell’s claim for relief, the Judge held that the clause limiting the restriction “within 150 miles of Baltimore for a period of three years after the termination” of employment with Conwell did not refer to future employment with a “competitor or client,” but modified the “competing business venture” clause only. This interpretation leaves the first clause, respecting employment with a client or competitor, with no geographical or time limitation. Therefore, the covenant was held to be overbroad. While Conwell argues that the “150 miles” clause limits the covenant as to both employment with a “competitor or client” and to engaging in a “competing business venture,” it is apparent from reading the covenant that it is, at best, ambiguous. Since it was drafted by Conwell, it should be strictly construed against that party. We find no error in the court’s interpretation of the covenant.

As to the court’s second reason for denying relief, Maryland follows the general rule that restrictive covenants may be applied only to those employees who provide unique services, or to prevent the future misuse of trade secrets or lists of clients. Ruhl v. Bartlett Tree Co., 245 Md. 118 , 225 A.2d 288 (1967); Silver v. Goldberger, 231 Md. 1 , 188 A. 2d 155 (1963); Tawney v. Mutual System of Md., 186 Md. 508 , 47 A.2d 372 (1946). The record clearly supports the finding that Gutberlet learned no trade secrets while employed by Conwell, was not in a position to misuse any customer listings, and his services to the company were not unique.

Accordingly, the order of the District Court is Affirmed.

How later courts describe this case

Explanatory parentheticals written by citing courts — 3 in all; the most informative distinct ones are shown.

Cited by 11 cases

View all citing references →
1973: 11978: 11979: 21980: 11983: 21984: 22002: 12009: 119732026peak 1979 · 2

Relies on it most ⓘ

  1. Maryland Undercoating Company, Inc. v. George D. Payne603 F.2d 477 (4th Cir. 1979)
  2. Snepp v. United States444 U.S. 507 (1980)
  3. Barnes Group, Inc. v. C & C Products, Inc., and Roy E. McGuire716 F.2d 1023 (4th Cir. 1983)
  4. Hasty v. Rent-A-Driver, Inc.671 S.W.2d 471 (Tenn. 1984)
  5. Becker v. Bailey299 A.2d 835 (Md. 1973)
  6. Tyler v. United States600 F.2d 786 (Ct. Cl. 1979)

Most recent

  1. Mansell v. TOYS" R" US, INC.673 F. Supp. 2d 407 (D. Maryland 2009)
  2. H&R Block Eastern Tax Services, Inc. v. Kameron Bates, D/B/A Bates Income Tax ServiceNo. M2001-02589-COA-R3-CV (Tenn. Ct. App. Sept. 3, 2002)
  3. Tabs Associates, Inc. v. Brohawn475 A.2d 1203 (Md. Ct. Spec. App. 1984)
  4. Hasty v. Rent-A-Driver, Inc.671 S.W.2d 471 (Tenn. 1984)
  5. Virgin Islands Diving Schools/Supplies, Inc. v. Dixon20 V.I. 54 (1983)
  6. Barnes Group, Inc. v. C & C Products, Inc., and Roy E. McGuire716 F.2d 1023 (4th Cir. 1983)

Citing references are not a citator: they show that a later opinion cites this case, not whether it followed, distinguished, or overruled it. Check negative history before relying on this case.

Authorities cited 3

DepthCaseCited by
Ruhl v. F. A. Bartlett Tree Expert Co., 225 A.2d 288 (Md. 1967) 44
Silver v. Goldberger, 188 A.2d 155 (Md. 1963) 35
Tawney v. Mut. Sys. of Md., Inc., 47 A.2d 372 (Md. 1946) 35

Keyboard shortcuts

/Focus the search box
j kNext / previous result
EnterOpen the selected result
xAdd / remove the selected result from the download list
n pNext / previous search term in a case
cCopy the citation of the current case
+ −Larger / smaller reading text
?Show this list