Welcome Wagon v. Haschert, 18667
| Decision Date | 10 June 1955 |
| Docket Number | No. 18667,18667 |
| Parties | WELCOME WAGON, Inc., Appellant, v. Marie HASCHERT, Appellee. |
| Court | Indiana Appellate Court |
John E. Fell, G. Richard Ellis, Kokomo, Russel J. Wildman, Peru, George E. Tobias, Kokomo, for appellant.
John Marshall, Kokomo, for appellee.
The appellant is a corporation engaged in the advertising and sales promotion business in many cities in the United States including Kokomo, Indiana. Its plan and methods of operation are of its own conception and, although unprotected by patent or copyright, are novel and unique. It procures what it calls 'sponsors' in the various cities in which it operates who are business men engaged in diversified lines of merchandising or services. In each of said cities, in addition to its list of sponsors, it employs one or more 'hostesses' whose duty it is to call upon brides, mothers of new-born babies and newly arrived residents of the community. They arrive in automobiles called 'welcome wagons' and carry baskets containing certificates of welcome and congratulations from the mayor, Chamber of Commerce and various other civic organizations together with small gifts or gift certificates from the sponsors as good will offerings and as express or implied suggestions that said sponsors are good people with whom to trade in the future. The hostesses make monthly reports to the sponsors as to the number of calls made and the names and addresses of the families involved and for each of such calls the sponsors pay the appellant a commission of which the appellant pays the hostesses 50 percent.
The hostesses are selected by the appellant because of their pleasing personalities, graciousness, tact and intelligence and are sent to a company operated school in New York City where they are thoroughly trained in the appellant's methods of operation and furnished with various booklets dealing with the problems of the business, manner of approach to prospective customers and kindred subjects. The appellee is widely and favorably known in Kokomo because of her noteworthy services in connection with various civic activities and for that reason she was employed by the appellant in January 1947 as a hostess detailed to the new-born baby division of the appellant's business in the Kokomo area in which capacity she served until September 20, 1952, when she resigned and went into the identical business for herself in Kokomo. Clause 9 of her contract of employment with the appellant provides that she, 'will not during the term of this employment, and for a period of five whole years thereafter, engage directly or indirectly, for herself or as a representative or employee of others, in the same kind or similar business as that engaged in by the Company, (1) in Kokomo, Ind., and/or (2) in any other city, town, borough, township, village or other place in the United States in which the Company is then rendering its said services, and/or (3) in any city, town, borough, township, village or other place in the United States in which it has been or has signified its intention to be engaged in rendering its said services.'
Counting on the above provisions of the employment contract the appellant brought this suit to enjoin the appellee from continuing in said business in the city of Kokomo but was denied relief by the Miami Circuit Court where the case was tried. This appeal challenges such decision as being contrary to law.
It is undisputed that the appellee breached her contract of employment. After her resignation on September 20, 1952, she established an identical business of her own in Kokomo using the same methods and techniques taught her by the appellant and went so far as to persuade some of the appellant's sponsors to quit doing business with it and enter into similar contracts with her. The appellee contends however that her breach of contract is of no consequence because (1) there is no evidence in the record tending to prove great damage or irreparable injury to the appellant; (2) that the restrictive covenant involved is not reasonably necessary for the fair protection of the appellant's business; and (3) the sweeping terms of said restrictive stipulation makes it contrary to public policy and an undue curtailment of the appellee's liberty in choosing her own employment and therefore unreasonable and void.
The appellee's first contention, as above indicated,...
To continue reading
Request your trial
-
Product Action Intern., Inc. v. Mero
...that is severable in its terms."), citing Young, 449 N.E.2d at 304; Licocci, 445 N.E.2d at 561, citing Welcome Wagon, Inc. v. Haschert, 125 Ind.App. 503, 127 N.E.2d 103, 106 (1955). "Where the covenant is both unreasonable and incapable of redaction, it will be unenforceable." Young, 449 N.......
-
Massachusetts Mut. v. Associated Dry Goods
...relief can provide adequate relief. See, e.g., Unishops v. May's Family Centers, 399 N.E.2d at 765; Welcome Wagon v. Haschert, 125 Ind.App. 503, 508, 127 N.E.2d 103, 106 (1955). This is a logical approach. Were it otherwise, indeterminate economic damage never could form the basis for injun......
-
Norlund v. Faust
...fact, if Faust could point to a specific dollar amount of losses, then a remedy at law would be sufficient. See Welcome Wagon v. Haschert (1955) 125 Ind.App. 503, 127 N.E.2d 103. When a covenant not to compete of this nature is breached, it follows that the employer will suffer harm. It wou......
-
Welcome Wagon Intern., Inc. v. Pender, 599
...on Contracts, 1659 (Revised Ed. 1937-47 Cumulative Supplement); Roane v. Tweed, Del. 89 A.2d 548, 41 A.L.R.2d 1; Welcome Wagon v. Haschert, 125 Ind.App. 503, 127 N.E.2d 103; 17 C.J.S. Contracts § 289(a); Hauser v. Harding, 126 N.C. 295, 36 S.E. The defendant stressfully contends the time pe......