Title: Lee v. Environmental Pest & Termite Control

State: georgia

Issuer: Georgia Supreme Court

Document:

516 S.E.2d 76 (1999) 271 Ga. 371 LEE et al. v. ENVIRONMENTAL PEST & TERMITE CONTROL, INC. No. S99A0184. Supreme Court of Georgia. May 17, 1999. Reconsideration Denied July 30, 1999. *77 Stephen Bailey Wallace II, Albert B. Wallace, Jonesboro, for Lee et al. W. Winston Briggs, Decker & Hallman, Atlanta, for Environmental Pest & Termite Control, Inc. THOMPSON, Justice. This is an appeal from the grant of an interlocutory injunction restraining appellants from doing business with certain customers of appellee. Finding no manifest abuse of discretion, see Kennedy v. W.M. Sheppard Lumber Co., 261 Ga. 145, 146, 401 S.E.2d 515 (1991), we affirm. Lee was a branch manager of Environmental Pest & Termite Control, Inc. ("Environmental Pest"). He executed an employment agreement in which he agreed that, during the term of the agreement and for a period of two years following termination, he would not use confidential information obtained during the course of his employment with Environmental Pest. In this regard, the agreement read: Lee voluntarily terminated his employment with Environmental Pest. Shortly thereafter, Lee and Dell Walker formed Future Pest Control, Inc. ("Future Pest").[1] When Future Pest sought business with Environmental Pest's customers, Environmental Pest brought suit against Lee, Walker and Future Pest, seeking injunctive relief and damages resulting from Lee's alleged breach of the employment agreement and his tortious interference with Environmental Pest's contractual relationships. Following a hearing, the trial court entered a preliminary injunction prohibiting Lee and Future Pest from soliciting, servicing, or otherwise doing business with customers that Lee contacted, or learned about, during the time he was employed by Environmental Pest. This appeal followed. *78 1. Jurisdiction of this appeal lies in this Court. Compare Electronic Data Systems Corp. v. Heinemann, 268 Ga. 755, 493 S.E.2d 132 (1997) with Pittman v. Harbin Clinic Professional Assn., 263 Ga. 66, 428 S.E.2d 328 (1993). 2. Chambers v. Peach County, 268 Ga. 672, 673, 492 S.E.2d 191 (1997). A trial court may issue an interlocutory injunction to maintain the status quo until the final hearing if, by balancing the relative equities of the parties, it would appear that the equities favor the party seeking the injunction. Ledbetter Brothers v. Floyd County, 237 Ga. 22, 226 S.E.2d 730 (1976). In determining whether the equities favor one party or the other, a trial court may look to the final hearing and contemplate the results. Id. If the trial court determines that the law and facts are so adverse to a plaintiff's position that a final order in his favor is unlikely, it may be justified in denying the temporary injunction because of the inconvenience and harm to the defendant if the injunction were granted. Id. Appellants argue that the trial court abused its discretion in granting the temporary injunction because it was based on an erroneous interpretation of law. More specifically, appellants posit that the trial court erred in construing the employment agreement to prohibit Lee from providing termite and pest control services to Environmental Pest's customers because the non-disclosure provision is unreasonable as a matter of law. We disagree. Durham v. Stand-By Labor &c., 230 Ga. 558, 563-564, 198 S.E.2d 145 (1973). Since Lee's agreement with Environmental Pest sought to protect confidential business information and was reasonably related to the protection of that information, it cannot be said that the employment agreement is unreasonable as a matter of law. Relying upon Avnet, Inc. v. Wyle Laboratories, supra, appellants contend they cannot be restrained from contacting Environmental Pest's customers because Lee's employment agreement with Environmental Pest did not contain a non-competition restrictive covenant. We cannot accept this contention. True, Avnet holds that an employer who wishes to protect intangible customer information *79 as well as tangible customer lists cannot rely on the Georgia Trade Secrets Act (OCGA § 10-1-760 et seq.), but must secure a non-competition restrictive covenant. However, Environmental Pest is not relying on the Trade Secrets Act. On the contrary, Environmental Pest relies on the fact that Lee contractually agreed that, for two years following the termination of his employment, he would not use confidential information that he obtained during the course of his employment. See Avnet, citing Restatement (Second) of Agency, § 396(b) (prior to Trade Secrets Act, employee had duty not to use customer lists, but could use names of customers retained in his memory, unless otherwise agreed). The law and facts are not so adverse to Environmental Pest's position that a final order in its favor is unlikely, and it is undisputed that Environmental Pest will be harmed in the absence of injunctive relief. Thus, it cannot be said that the grant of the interlocutory injunction was a manifest abuse of the trial court's discretion. See Ledbetter Brothers v. Floyd County, supra. Judgment affirmed. All the Justices concur. [1] Lee is the president and a majority shareholder of Future Pest. Walker is a minority shareholder of the company.