Community Counseling Service, Inc. v. Reilly,

317 F.2d 239 (4th Cir. 1963)

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Nature of the Case

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Facts

Reilly (D) was employed by CCS (P), a fund-raising organization. D was new to the fundraising business, but in two years he wanted a transfer to sales. D became the regional sales rep for P in the Maryland to Georgia district. D got a salary of $140 per week plus commissions. D eventually presented himself to his manager and informed him that he was going to resign, that was on January 4, 1960. D claimed urgent personal reasons. It was agreed that D's resignation would be effective on January 29, 1960. Before his resignation was effective, P discovered that D had been booking business for his own company that would compete with P. D earned fees of $17,280 for the three campaigns he booked while employed for P. P sued D for an accounting. Evidence at trial indicated that D had contacted all three clients while employed with P. Judgment was entered in D's favor. P appealed.