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Business Organizations Keyed to Chasalow, 3rd Ed.
Town & Country House & Home Service, Inc. v. Newbery
Citation:
3 N.Y.2d 554, 170 N.Y.S.2d 328, 147 N.E.2d 724 (1958)Facts
Town & Country House & Home Service provided specialized house cleaning services using teams of workers who performed cleaning in an assembly-line fashion. The company invested considerable time and effort in identifying potential customers through random telephone calls and personal visits, as most housewives did their own cleaning. After three years of operation, plaintiff had built up a clientele of approximately 240 customers. The defendants, who held key positions in plaintiff’s business, resigned after being denied increased compensation and formed their own competing company. While still employed by plaintiff, they met outside of business hours to plan their new venture and purchase equipment. After leaving plaintiff’s employ, defendants solicited about 38 of plaintiff’s customers, successfully obtaining business from approximately 13 of them. These were the only people defendants solicited for their new business.
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