NATIONAL CHEMSEARCH CORPORATION OF NEW YORK v. Bogatin
| Decision Date | 27 July 1965 |
| Docket Number | No. 15204.,15204. |
| Citation | 349 F.2d 363 |
| Parties | NATIONAL CHEMSEARCH CORPORATION OF NEW YORK, Inc. v. Alfred L. BOGATIN and Madison Chemical Corporation, Appellants. |
| Court | U.S. Court of Appeals — Third Circuit |
Joseph G. Manta, LaBrum & Doak, Philadelphia, Pa. (James M. Marsh, Philadelphia, Pa., on the brief), for appellants.
Bancroft D. Haviland, Schnader, Harrison, Segal & Lewis, Philadelphia, Pa. (Frank B. Murdoch, Philadelphia, Pa., Edwin Tobolowsky, Dallas, Tex., on the brief), for appellee.
Before McLAUGHLIN, KALODNER and STALEY, Circuit Judges.
This is an appeal from an order of the United States District Court for the Eastern District of Pennsylvania granting plaintiff, National Chemsearch Corporation, a preliminary injunction. Injunctive relief was sought against defendant, Bogatin, for violation of a restrictive covenant clause in his employment contract with Chemsearch. Bogatin allegedly had agreed not to sell or solicit sales in the territory he had served for Chemsearch. Similar relief was sought against the Madison Chemical Corporation for allegedly conspiring with Bogatin to breach this obligation. On August 21, 1964, the lower court granted the injunction for a period of one year.
The granting of a preliminary injunction rests in the sound discretion of the trial court. Bancroft & Sons Co. v. Shelley Knitting Mills, Inc., 268 F.2d 569, 573 (C.A.3, 1959). This exercise of discretion will not be disturbed on appeal unless it is contrary to some rule of equity or the result of an improvident exercise of judicial discretion. Deckert v. Independence Shares Corp., 311 U.S. 282, 290, 61 S.Ct. 229, 85 L.Ed. 189 (1940); American Ice Co. v. Royal Petroleum Corp., 261 F.2d 365, 368 (C.A. 3, 1958). In the instant case the preliminary injunction must be vacated because in granting it for a period of one year the district court exceeded the permissible limitations of its discretion. Bancroft & Sons Co. v. Shelley Knitting Mills, Inc., supra.
Defendants urge in this appeal, as they did in the district court, that § 1014 of Article X of the Business Corporation Act, 15 Purdon's Pa.Stat.Ann. § 2852-1014, bars plaintiff from instituting an action on any contract in the courts of Pennsylvania.1 Defendants asserted that Chemsearch does in fact "do business" in Pennsylvania and has no certificate of authority. However, the district court in ruling on this contention held that Chemsearch's activities do not...
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...of employment. See National Chemsearch Corp. of New York, Inc. v. Bogatin, 233 F.Supp. 802 (E.D.Pa.1964), vacated on other grounds, 349 F.2d 363 (3 Cir. 1965). We agree with the district court's dismissal of any contention that Leamy's services can be considered "special, unique or extraord......
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