Hopper v. All Pet Animal Clinic

861 P.2d 531 (Wyo. 1993)

Facts

Dr. Hopper (D) worked part-time as a veterinarian for All Pet Animal Clinic (P). P specialized in the care of small animals; mostly domesticated dogs and cats, and those exotic animals maintained as household pets. D was eventually offered full-time employment which included a specified salary and potential for bonus earnings as well as other terms of employment. This was conditioned upon acceptance of a covenant not to compete, the specific details of which were not discussed at the time. Full-time employment was commenced under an oral agreement. Eventually, a written contract was completed. Upon termination, D agreed that she will not practice small animal medicine for a period of three years from the date of termination within 5 miles of the corporate limits of the City of Laramie, Wyoming. D also agreed that the duration and geographic scope of that limitation is reasonable. The contract was terminable by either party on thirty days notice. This covenant was supported by an increase in salary to D. One year later, D was discovered to be investigating the purchase of a veterinary practice in Laramie. P offered a release from the non-competition agreement in return for a cash buy-out. P wanted $40,000.00, to compensate the practice for the loss of business which will happen if you practice small-animal medicine elsewhere in Laramie. D denied that she was going to purchase the practice and told P that the agreement was not worth the paper it was written on and that she could do anything she wanted to do. P terminated D's employment and informed her to consider the 30-day notice as having been given. D purchased the Gem Clinic and operated it in violation of the covenant not to compete, within the City of Laramie and with a practice including large and small animals. D grew the client list from 368 at the time she purchased the practice to approximately 950 at the time of trial. Of those, 187 clients were served by D at Gem City who were also clients of P or Alpine. The small animal work of D contributed from fifty-one to fifty-two percent of her gross income at Gem City. P and Alpine filed a complaint against D seeking injunctive relief and damages for breach of the covenant not to compete. The district court determined that the covenant not to compete was enforceable as a matter of law and contained reasonable durational and geographic limits. D was enjoined from practicing small animal medicine within five miles of the corporate limits of the City of Laramie for a period of three years from July 18, 1991. The district court found that the amount of damages suffered by D and Alpine was speculative and not proven by a preponderance of the evidence. Everybody appealed.