MAURICE B. COHILL, JR., CHIEF UNITED STATES DISTRICT JUDGE.
Presently before us is plaintiffs' Motion for Preliminary Injunction and defendant's Motion for Summary Judgment. On November 9, 1988, we conducted a hearing on plaintiffs' motion and consolidated the trial on the merits with the hearing pursuant to Federal Rule of Civil Procedure 65(a)(2). For the reasons provided below, we will grant plaintiffs' motion, deny defendant's motion, and enter judgment for the plaintiffs. Pursuant to Rule 52 of the Federal Rules of Civil Procedure, we make the following Findings of Fact and Conclusions of Law.
I. FINDINGS of FACT
The plaintiffs, LCI Communications, Inc. ("LCI") and LiTel Telecommunications Corporation ("LiTel"), brought this action to enjoin the defendant, Matthew G. Wilson, from violating the provisions of an employment contract that he signed at the commencement of his employment with LiTel.
LCI is a corporation organized under the laws of Delaware with its principal place of business in Ohio. LiTel is a wholly-owned subsidiary of LCI, and is also organized under the laws of Delaware with its principal place of business in Ohio. The defendant, Matthew G. Wilson, is an Allegheny County resident and a citizen of Pennsylvania. The amount in controversy, exclusive of interest and costs, exceeds $ 10,000.
LCI, through its wholly-owned subsidiary, LiTel, is in the business of operating a common carrier telecommunications service. LCI has no sales force and conducts its operations solely through LiTel. LiTel operates its network in the midwest region of the United States, including Western Pennsylvania, and does not compete with other telecommunication companies on a nationwide level.
LiTel employs account executives to sell its products and services. The account executives' customer contacts are frequent and regular; this is the primary means by which the corporation develops good will. LiTel invests substantial amounts of money and time in programs and training to ensure that its account executives are properly trained and informed regarding LiTel's products and services.
As a result of LiTel's training methods, the account executives establish a permanent and exclusive relationship with the customers they service. LiTel compiles and distributes customer lists and information to the account executives in order to assist them in sales. This information is highly confidential and constitutes a valuable asset of LiTel.
LiTel utilizes various devices to protect its customer lists and files from disclosure to non-employees. LiTel restricts access to customer lists, marks certain documents "confidential," and instructs the account executives during the training seminars and staff meetings that all customer information is confidential. In addition, at the commencement of employment, each account executive signs a five page employment contract which consists of a letter agreement and a noncompetition agreement.
The letter agreement outlines the position, duties, compensation and benefits of a LiTel account executive. In addition, it states, "As a condition of employment you will agree to sign and abide by the terms of the attached Competition/Confidentiality Statement."
The noncompetition agreement, attached to the letter agreement, is captioned "LCI Communications, Inc.," and it provides in relevant part:
As a condition of my employment or continued employment (whichever is applicable) by LCI Communications, Inc., a Delaware corporation (the "Company"), and of the salary or other compensation to be paid to me during the term of such employment, I hereby agree as follows:
1. Confidential Information