Community Counselling Service, Inc. v. Reilly

313 F.2d 239 (1963)

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Community Counselling Service, Inc. v. Reilly

United States Court of Appeals for the Fourth Circuit
313 F.2d 239 (1963)

  • Written by John Caddell, JD
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Facts

Community Counseling Service, Inc. (CCS) (plaintiff), a corporation engaged in professional fundraising, hired Reilly (defendant) in 1957. In July 1959, Reilly transferred from the operations division to the sales division and became a regional sales representative. His job was to find organizations who were interested in starting fundraising campaigns, and to secure commitments from them to have CCS run the campaign. On January 4, 1960, he informed CCS that he intended to resign. The parties agreed that his resignation would take effect on January 26, 1960. During the intervening three weeks, Reilly spoke to three different religious organizations about fundraising campaigns. Prior to January 26, Reilly obtained commitments from the three groups to have him personally run the fundraising campaigns after his departure from CCS. After leaving CCS, Reilly conducted campaigns for the three groups and was paid fees and commissions. CCS sued Reilly for an accounting, arguing that Reilly had disloyally pursued his own interests while still employed by CCS. The trial court found in Reilly’s favor, and CCS appealed.

Rule of Law

Issue

Holding and Reasoning (Haynsworth, J.)

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