Uarco, Inc. v. Osborne

This is an appeal by defendant-appellant from a
contempt action in which John H. Osborne was found to have
violated an injunction entered against him October 29, 1976. The
injunction was originally granted for a period of two years and
prohibited Mr. Osborne from competing with his former employer,
Uarco, Inc. Uarco was in the business of selling business forms
and Osborne was a salesman employed by the company. The
injunction was based on non-competition provisions in an
employment agreement entered into by Osborne and Uarco on May 19,
1976. At that time Osborne had been an employee-salesman of Uarco
for several years. Osborne's employment was terminated July 12,
1976. The initial controversy involved the construction and validity
of the employment agreement and resulted in the injunction which
required Osborne to honor the non-competition provisions therein.
Donald R. Newkirk, Master appointed by the court, entered a
"Report of Master" after hearing testimony for two days and
examining numerous documents.