Restrained former coin company employees can start selling coins again, appeals court says
Arizona Coin Collector
http://www.setexasrecord.com/news/215746-restrained-former-coin-company-employees-can-start-selling-coins-again-appeals-court-says
Restrained former coin company employees can
start selling coins again, appeals court says
11/5/2008 5:16 PM
By David Yates
A pair of former coin company employees who had
been enjoined from doing business in the United
States can start again, ruled the Texas' Ninth
Court of Appeals last week.
A year ago, the Record reported on a suit filed by
Austin-based U.S. Money Reserve Inc. in which the
company sought a temporary and permanent injunction
against a band of former employees who formed their
own coin company by allegedly stealing the company's
consumer accounts.
On Nov. 13, 2007, Jefferson County Judge Bob Wortham,
58th Judicial District, held a hearing and granted U.S
Money Reserve's temporary injunction request, which
prohibited several of its former employees from
selling coins in the U.S. until Jan. 25, 2011.
Two of the defendants in U.S Money Reserve's suit,
Chad Poole and Terry Fendley, disagreed with the
judge's decision and submitted an interlocutory
appeal.
On Oct. 30 Beaumont justices reversed and remanded
Judge Wortham's decision, dissolving the injunction.
"We hold that, while the trial court did not abuse its
discretion in granting a temporary injunction to
preserve the status quo, it did abuse its discretion
in crafting the temporary injunction order," stated
an opinion authored by Justice Charles Kreger.
"We declare the temporary injunction order void and
dissolve the order because it is overly broad and
fails to comply with Rule 683 of the Texas Rules of
Civil Procedure. Tex. R. Civ. P. 683."
Rule 683 pertains to the form and scope of an
injunction or restraining order.
"The trial court's order granting the temporary
injunction in favor of U.S. Money Reserve does not
set forth any reasons for issuance of the temporary
injunction or otherwise state any reason why the
identified probable injury is an irreparable one for
which U.S. Money Reserve has no legal remedy," the
opinion states.
"Further, the order does not include a date setting
the matter for trial as required by Rule 683. Tex. R.
Civ. P. 683. Instead, the order attempts to enjoin
the parties through a date certain in the future,
Jan. 25, 2011. The purpose of a temporary injunction
is to preserve the status quo through the date of
trial."
In its original suit U.S. Money Reserve, also known
as United States Rare Coin & Bullion Reserve
(USRCB), named as defendants Cecil Roberts, doing
business as United States Money Exchange; Jason
Braquet and Ed Seymour, doing business as JTB
Coins; Chad Poole, Terry Fendley and Bill
Truman.
According to the plaintiff's petition, on Oct. 17,
2007, Braquet, a former USRCB employee, left the
company to work with other former employees "to
divert sales of coins from numerous customers of
plaintiff."
"Instead of making an honest living, these
defendants were literally stealing the business
of plaintiff, as well as stealing credit card
information from plaintiff's customers, all in
violation of criminal statutes," the suit said.
"The defendants have acted as a joint
enterprise."
To prove its allegations, USRCB hired local
private investigator and political blogger
Philip Klein to probe the former employees who
had left the company "on suspicious
circumstances."
Klein wrote in his affidavit that USRCB was
experiencing "strange calls" from current
customers saying that United States Money
Exchange charged their credit cards for products
ordered from USRCB.
The suit says defendants Seymour, Poole, Fendley,
Truman, Braquet and Roberts violated their
non-compete agreements when they quit, stole
USRCB trade secrets and formed their own rival
coin companies.
"The defendants, jointly and severally, have
committed negligence, gross negligence,
tortuous interference with business
relationships and conversion of plaintiff's
trade secrets.," the suit said.
USRCB is seeking to recover actual and
punitive damages.
The company is represented by attorney John S.
Morgan of the Lindsay & Morgan law firm.
Poole and Fendley are represented in part by
attorneys Todd C. Collins and Mark E. Dykes.
Appeals case No. 09-08-137 CV
Trial case No. A180-741
..