Lawson Products, Inc. v. Avnet, Inc

782 F.2d 1429 (7th Cir. 1986)

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Nature of the Case

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Facts

Lawson (P) and Avnet (D) compete in the distribution of industrial and automotive supplies. Both companies deal with sales reps who deal directly with customers. Customer loyalty tends to attach to the sales reps rather than the products of any individual company. P claims that D commenced a raid on its sales staff and that during January 1983 at least 57 of the eight hundred sales reps employed by P were contacted by D and left for employment with D. P sued for tortious interference with business and contractual relations, unfair competition, and deceptive trade practices. P claims it is suffering ongoing damages and is at a competitive disadvantage by D's access to confidential information. P's reps are independent contractors, but they were extensively trained in house and then sent to an established territory. P's reps were given sales materials that were considered confidential by P but were not so marked. P claims D now has its pricing information, customer tendencies, and product specifications. D claims P failed to protect its interests through binding employment contracts. The judge was presented with a large amount of conflicting evidence and from that morass determined that he would not issue an injunction as the requested injunction by P required more than a restraint on D from illegal activity. P appealed.