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eBook details

• Title: Nelms v. Morgan Portable Bldg. Corp.
• Author : Supreme Court of Arkansas
• Release Date : January 22, 1991
• Genre: Law,Books,Professional & Technical,
• Pages : * pages
• Size : 65 KB

Description

This is a choice of forum case in which the appellant, Roger Nelms (Nelms), sought to have his employment contract with the appellee, Morgan Portable Building Corporation (Morgan), declared void and unenforceable under the Wingo Act, Ark. Code Ann. 4-27-104 and - 105 (1987), and as being contrary to the public policy of the State of Arkansas. Morgan filed a motion to dismiss on the basis of ARCP Rules 12(b)(1), (b)(2), (b)(3), and (b)(6), contending that Nelms had consented to the jurisdiction of a Texas Court on all issues involving the employment contract and that an Arkansas court lacked jurisdiction to entertain such a proceeding. Nelms was a resident of Lawrence County, Arkansas, where he served as plant manager of Morgan, a Texas corporation which manufactures and sells portable buildings in Arkansas and in other states. Helms had been manager of the Walnut Ridge plant for two years and had formerly served as manager of Morgan's Mississippi plant. On June 13, 1986, Morgan prepared and presented to Helms a contract entitled ""Standard Employment/Non-competition Agreement"". The contract was signed by Helms and Morgan's president at Morgan's plant in College City, Arkansas. Then, the contract was delivered to Morgan's corporate office in Dallas and approved. At the time the contract was signed by Helms and Morgan, Morgan was not authorized to do business in Arkansas, due to the revocation of its charter for non-payment of franchise taxes. The contract, which is attached to Nelm's Petition for Declaratory Judgment, recited on Page 2 as follows: ""WHEREAS, Morgan would not offer the employment relationship to employ without the specifically negotiated protective covenants herein stated. . . ."" The contract contained various protective covenants in Paragraph 9, which precluded Helms from competing with Morgan by use of confidential information, trade secrets, and soliciting Morgan's customers and employees. These protective covenants would continue for five years after termination of employment, and the area covered by these covenants was within 200 miles of any of Morgan's plants. Of particular significance to this case are Paragraphs 16 and 20 of the contract, which read as follows:

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