Hayes v. Altman
Decision Date | 20 January 1967 |
Citation | 225 A.2d 670,424 Pa. 23 |
Parties | Thomas A. HAYES, Appellant, v. Theodore L. ALTMAN. |
Court | Pennsylvania Supreme Court |
Silvestri Silvestri, Pittsburgh, for appellee.
Before BELL, C.J., and MUSMANNO, JONES, EAGEN and O'BRIEN, JJ.
Appellee, Dr. Theodore L. Altman, a duly licensed Optometrist in this Commonwealth, negotiated a 5-year employment contract with appellant, Dr. Thomas A. Hayes. The agreement, inter alia, provided a starting salary 36% Higher than that which appellee was receiving from the firm he left; uniform yearly increases of $520.00; health and accident insurance coverage; an option to purchase his employer's practice, and a restrictive covenant which reads as follows:
At the expiration of the agreement on December 31, 1963, Dr. Altman continued to work for Dr. Hayes. However, the parties were unable to negotiate a new contract of employment. On March 13, 1964, a working day, Dr. Hayes discharged Dr. Altman, as Dr. Altman had not signed another agreement. There is no dispute as to Dr. Altman's work having been completely satisfactory.
Following his discharge, Dr. Altman, in April of 1964, opened an office for the practice of Optometry in Monroeville, Pennsylvania, 6.3 air miles from the office of the appellant. The Chancellor found, in Finding of Fact No. 15: The Findings of Fact of the Chancellor were not excepted to by appellee, Dr. Altman.
The Chancellor, in his discussion, set forth the basic issue for determination: '* * * whether the restrictive covenant contained in the employment contract dated January 1, 1959, is valid and enforceable under the factual circumstances of this case.' The Chancellor then went on to find in his Conclusions of Law No. 2: 'The general covenant not to compete within a certain area for a certain time was not reasonably necessary for the protection of plaintiff-employer, and constitutes an undue hardship upon defendant and is therefore not enforceable in the factual circumstances of this case.' This Conclusion of Law of the Chancellor was affirmed by the court en banc, one Judge dissenting. This appeal followed.
We said, in Keyser v. Margolis, 422 Pa. 553, 223 A.2d 13 (1966): 'In passing upon the questions raised on this appeal we must adhere to the well-established rule that a chancellor's findings of fact, approved by a court en banc, have all the force and effect of a jury's verdict if they are supported by adequate evidence and ordinarily will not be disturbed on appeal. (citing cases). However, the chancellor's With the conclusions reached by the Chancellor and his reasons therefore, we cannot agree. The agreement specifically set forth the Borough of Monroeville as a place wherein the younger Doctor could not set up an office upon termination of his employment. There is no question that this agreement was made between Dr. Altman and Dr. Hayes, nor is there any question that Dr. Altman is violating this agreement. The Chancellor's Findings of Fact support these aforementioned premises, yet in his discussion, he bases...
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