Simpson v. Kelly Services, Inc.

Simpson v. Kelly Services, Inc.

Opinion

 [*491]  Kelly Services supplies temporary employees to various businesses across the nation. In 1974, it terminated the services of plaintiff, Mrs. Simpson, as its agent and manager of its Shreveport branch office. Mrs. Simpson, joined with her husband as co-plaintiff, brought suit on the contract she had with Kelly Services.

The contract contains provisions for liquidated damages in the event of Mrs. Simpson's termination and a formula or schedule by which these damages are to be determined. It also contains an agreement not to compete and for liquidated damages which are applicable to Mrs. Simpson. The lower court resolved the contractual dispute in plaintiff's favor. Kelly Services appeals. We reverse and remand.

The [**2]  pertinent sections of the contract provide that Kelly Services may terminate its contract at any time,

". . . but Kelly shall thereupon become obligated to pay to the Manager . . . a sum [determined by schedule or formula which follows] . . .

"Payment of such sums to the Manager shall be contingent upon the Manager's continued compliance with all of the provisions of paragraph 11 below and schedule A attached and shall be compensation for such compliance with the limited Agreement Not To Compete.

"11. Kelly's Rights Upon Termination. Upon termination of this agreement for any reason, the Manager agrees:

"(d) Not to compete with Kelly for a limited period of time after the effective date of termination of this agreement and in limited geographical areas as more specifically set forth on Schedule A attached hereto and incorporated by reference herein, which Schedule the Manager acknowledges he has read and signed."

Schedule A, which follows, provides that:

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