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SAFEWAY STEEL SCAFFOLDS COMPANY v. CLAYTON (01/07/64)

January 7, 1964

SAFEWAY STEEL SCAFFOLDS COMPANY
v.
CLAYTON, APPELLANT.



Appeal, No. 153, Jan. T., 1963, from judgment of Court of Common Pleas No. 2 of Philadelphia County, Dec. T., 1961, No. 3728, in case of Safeway Steel Scaffolds Company v. Warne Clayton, Leslie Allen and Bil-Jax of Pennsylvania, Inc. Judgment vacated and matter remanded.

COUNSEL

James J. Boyle, with him Robert A. Rosin, and Ettinger, Gallagher & Silverman, for appellants.

Edward W. Madeira, Jr., with him Pepper, Hamilton & Scheetz, for appellee.

Before Bell, C.j., Musmanno, Jones, Cohen, Eagen, O'brien and Roberts, JJ.

Author: Roberts

[ 413 Pa. Page 230]

OPINION BY MR. JUSTICE ROBEERTS

Appellants, Clayton and Allen, for several years prior to February, 1962, were employed in supervisory positions with appellee, Safeway Steel Scaffolds Company. Safeway is engaged in the business of the erection of steel scaffolding in the Philadelphia area.*fn1 In early February, 1962, the individual appellants terminated their employment with Safeway, organized Bil-Jax of Pennsylvania, Inc., of which they were the principal officers, and entered the business of erecting steel

[ 413 Pa. Page 231]

    scaffolding, similar in nature to appellee's business and in direct competition with Safeway.*fn1

Safeway instituted an action in equity against the individual and corporate appellants to enjoin them from (1) utilizing certain confidential information gained by Clayton and Allen during their employment with Safeway, (2) bidding on any jobs upon which Safeway had submitted bids prior to the termination of their employment, and (3) competing unfairly with Safeway. Appellee also requested that appellants account to Safeway for the proceeds received by appellants from any jobs performed by them on which Safeway had, prior to February 9, 1963, submitted bids.

As a result of several conferences, the parties compromised their differences. Counsel submitted a consent decree which the court approved on July 6, 1962. The presently material portion of the decree provided: "Within thirty days from Wednesday, June 27, 1962, said defendants [appellants] shall submit to the court, in accordance with rule 1530, an accounting for profits made by them or any of them on ..." three designated jobs.

As directed by the consent decree, appellants submitted an accounting*fn2 prepared by a certified public accountant, which covered the period of operations of Bil-Jax from January 1 to June 30, 1962, and dealt particularly with the three jobs which had been performed for the total price of $12,350. Appellants took credit for direct labor and rental of equipment costs on these jobs of $3,907.66. They also took credit for certain "indirect operating expenses" ...


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