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Business Associations Keyed to Epstein, 5th Ed.
Duane Jones Co., Inc. v. Burke
Citation:
117 N.E.2d 237 (1954)Facts
Duane Jones Company was an advertising agency founded in 1942 that by 1951 had acquired accounts producing a gross billing of $9 million. In June 1951, several officers, directors, and employees of the company met to discuss either buying out Duane Jones’ interest or forming a new agency. They approached Jones with an ultimatum that if he did not sell his interest, they would resign en masse and take the company’s clients with them, claiming the clients had already been “presold” on the plan. After negotiations failed, the defendants resigned from their positions but continued working at Duane Jones while secretly organizing a new agency, Scheideler, Beck & Werner, Inc. They solicited Duane Jones’ clients and personnel before and during their notice periods. When their new agency opened in September 1951, it had acquired nine of Duane Jones’ former clients and employed over 50% of its personnel, causing substantial damage to the plaintiff’s business.
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