Capelouto v. Orkin Exterminating Co. of Fla., Inc.

Decision Date05 January 1966
Docket NumberNo. 34037,34037
Citation183 So.2d 532
PartiesReuben CAPELOUTO, Appellant, v. ORKIN EXTERMINATING COMPANY OF FLORIDA, Inc., a Florida Corporation, Appellee.
CourtFlorida Supreme Court

Wilfred C. Varn, of Ervin, Pennington, Varn & Jacobs, Tallahassee, for appellant.

J. Lewis Hall of Hall, Hartwell & Hall, Tallahassee, for appellee.

O'CONNELL, Justice.

Appellant, Capelouto, was formerly employed as a branch manager by Orkin, the appellee exterminating company. The contract of employment provided that upon termination of appellant's employment he would not compete with Orkin for a period of two years within the area managed by him. Appellant terminated his employment with Orkin effective May 1, 1964, apparently as a result of a personality conflict with a superior in that organization. almost immediately thereafter he commenced his own exterminating business within the prohibited area and instituted this suit. In the trial court appellant sought a declaratory judgment concerning his rights and status under the above employment contract and asked to be relieved from the provisions of the contract limiting his right to enter into competition with Orkin in the structural pest control business.

Before the chancellor, appellant argued, alternatively, (1) that the contract was void under F.S. Sec. 542.12, F.S.A. because not reasonable as to the area covered, as required by subparagraph (2) of that section; and (2) that if the contract were held valid under the statute, the statute itself was invalid as depriving him of the equal protection of the law and of his property right to earn a living.

The chancellor rejected both arguments and enjoined appellant from competing with appellee for a period of two years beginning February 15, 1965, which date was about 30 days after entry of the final decree and some nine months after the filing of the suit. On petition for rehearing the decree was amended to make the injunction begin to run on March 1, 1965. Concerning the constitutionality of the statute, the chancellor concluded:

'In view of the numerous applications of the statute and the apparent recognition in at least one case that Standard Newspapers, Inc., supra, has settled the constitutionality of the statute and perceiving no reason to distinguish that case from this in constitutional application, it is concluded that subsection (2) of F.S. 542.12 [F.S.A.] is constitutional.'

The chancellor having passed directly upon the validity of the statute, the case is properly before us for review by appeal.

Appellant raises four questions for our consideration: (1) whether Sec. 542.12(2) is valid under Florida and federal constitutions; (2) whether the subject covenant not to compete is invalid under the statute as covering too large a geographical area; (3) whether the chancellor abused his discretion in imposing a two year injunctive period running some nine months beyond the date contemplated by the contract itself; and (4) whether there are any special equities in favor of the appellant that require a holding that the contract was void as unreasonable. We shall discuss these points in the order listed.

In Standard Newspapers v. Woods, Fla.1959, 110 So.2d 397, this court affirmed the decree of the chancellor insofar as it held the subject statute to be valid, saying at p. 400:

'We come, then, to the conclusion that the chancellor ruled correctly when he held the act constitutional. As for the appellee, as appellant concedes, he is not prohibited as an employee from securing a livelihood for his family but is only precluded from entering the field as a proprietor.'

As the reported facts and the above quoted portion of that case reveal it did not involve a contract restraining an employee from competing with his former employer as does the case at bar. Therefore, as the chancellor recognized in the decree under review, the Standard Newspapers case did not specifically settle the constitutionality of subsection (2), Section 542.12, as applied to contracts affecting employees or agents. We will consider the question now.

As was pointed out in our opinion in Standard Newspapers, supra, under the common law, contracts restricting a man's right to follow his calling were considered void. But the reasons which supported the common law view have long since disappeared. In any event, there can be no doubt that the legislature of our state has the power to enact legislation superseding the common law as it did by enactment of Section 542.12, and more specifically by the enactment of subsections (2) and (3) thereof.

Appellant argues that the statute is invalid as denying him equal protection and due process of law, but he offers no convincing authority in support. There has been no showing of invalidity sufficient to overcome the presumption of validity which we must indulge in favor of every properly enacted statute. Kass v. Lewin, Fla.1958, 104 So.2d 572. We therefore hold subsection (2) of Section 542.12 as applied to such contracts between an employee and an employer to be constitutional.

We agree with appellant that the fact that such contracts may be lawfully made and enforced under the statute does not ipso facto make every such contract enforcible as written. The restrictive provisions of such contracts will generally be enforced in such way as to protect the legitimate interests of the employer without doing...

To continue reading

Request your trial
60 cases
  • Hapney v. Central Garage, Inc.
    • United States
    • Florida District Court of Appeals
    • 1 Febrero 1991
    ...has addressed the precise issue presented here. Several decisions, however, imply recognition of the rule. In Capelouto v. Orkin Exterminating Co., 183 So.2d 532, 534 (Fla.), appeal dismissed, 385 U.S. 11, 87 S.Ct. 78, 17 L.Ed.2d 10 (1966), our supreme court addressed the constitutionality ......
  • Sarasota Beverage Co. v. Johnson
    • United States
    • Florida District Court of Appeals
    • 2 Agosto 1989
    ...this approach in the context of analyzing the covenants' reasonableness as to time and area. See, e.g., Capelouto v. Orkin Exterminating Co. of Florida, 183 So.2d 532, 534 (Fla.), appeal dismissed, 385 U.S. 11, 87 S.Ct. 78, 17 L.Ed.2d 10 (1966) ("Absent any overriding public interest in hav......
  • MedX, Inc. v. Ranger
    • United States
    • U.S. District Court — Eastern District of Louisiana
    • 13 Marzo 1992
    ...by the chancellor is the only way by which the provisions of the contract and the statute could be effectuated. Capelouto v. Orkin Exterminating Co., 183 So.2d 532, 535 (Fla.), appeal dism'd, 385 U.S. 11, 87 S.Ct. 78, 17 L.Ed.2d 10 (1966).7 Denial of extended relief on the facts of this dis......
  • Pro Edge L.P. v. Gue
    • United States
    • U.S. District Court — Northern District of Iowa
    • 31 Enero 2006
    ...the injunction could reflect prospective enforcement of the covenant in light of the defendant's breach) (citing Capelouto v. Orkin Exterminating Co., 183 So.2d 532 (Fla.1966); Fullerton Lumber Co. v. Torborg, 270 Wis. 133, 70 N.W.2d 585 (1955)); Presto-X, 442 N.W.2d at 90 (exercising equit......
  • Request a trial to view additional results

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT