Jl Vodka v. Jl Beverage Co. ( 2015 )

 respondent. Thereafter, Metheny and appellant Michael Spearman
created appellant company Johnny & Mike Drink, Inc.'
In 2008, respondent was engaged in negotiations to sell its
assets to non-party Patriot Holdings, LLC for over $5 minion. Through
his employment at respondent, Metheny approached Patriot Holdings and
presented his business plan for Johnny & Mike Drink, representing that
Johnny & Mike Drink was associated with respondent. Patriot Holdings
rejected Johnny & Mike Drink's business plan, and as a result, terminated
negotiations to purchase respondent's assets. Respondent filed the
underlying action for breach of contract, intentional interference with
prospective economic advantage, injunctive relief, and other claims. A
default judgment was entered against appellants JL Vodka, JL
Productions, and Metheny for $5,270,171.98 in damages and• for an
injunction enjoining them from competing with respondent in the future.
This appeal followed.
Having considered the parties' briefs and the record on appeal,
we conclude that substantial evidence supports the district court's
determination of damages. See Asphalt Prods. Corp. v. All Star Ready
Mix, Inc., 111 Nev. 799, 802, 898 P.2d 699, 701 (1995) (providing that
broad discretion is given to a district court in calculating an award of
damages, and the award will be upheld if supported by substantial
evidence); see also Finkel v. Cashman Prof?, Inc., 128 Nev. Adv. Op. No. 6,
270 P.3d 1259, 1262 (2012) (explaining that substantial evidence is
evidence that a reasonable mind might accept as adequate to support a
'While Spearman and Johnny & Mike Drink are listed as appellants
and were included in the notice of appeal, they were dismissed from the
underlying action prior to the entry of the default judgment.
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conclusion); Local Joint Exec. Bd. of Las Vegas, Culinary Workers Union,
Local No. 226 v. Stern, 98 Nev. 409, 411, 651 P.2d 637, 638 (1982)
(providing that pure economic loss is recoverable in actions for intentional
interference with prospective economic advantage). Thus, we affirm the
district court's damages award.
We conclude, however, that the district court abused its
discretion in permanently enjoining JL Vodka, JL Productions, and
Metheny from competing with respondent. See Sowers v. Forest Hills
Subdivision, 129 Nev. Adv. Op. No. 9, 294 P.3d 427, 433 (2013) (providing
that this court reviews a district court's decision to grant a permanent
injunction for an abuse of discretion). The permanent injunction's
language preventing JL Vodka, JL Productions, and Metheny from
"competing against JLB" is too broad and does not reasonably detail the
acts sought to be restrained. See Webster v. Steinberg, 84 Nev. 426, 430,
442 P.2d 894, 896 (1968) (explaining that a permanent injunction must be
specific in its terms and describe in reasonable detail the act or acts
sought to be restrained). Further, the injunction unreasonably restrains
Metheny's ability to earn a living because it does not include a durational
term or specify a line of business from which Metheny is precluded from
competing with respondent. See Traffic Control Servs., Inc. v. United
Rentals Nw., Inc., 120 Nev. 168, 172, 87 P.3d 1054, 1057 (2004)
(explaining that because "the loss of a person's livelihood is a very serious
matter," non-competition covenants are closely scrutinized (internal
quotations omitted)); see also generally Hansen v. Edwards, 83 Nev. 189,
191-92, 426 P.2d 792, 793 (1967) (providing that "[a] restraint of trade is
unreasonable . . . if it is greater than is required for the protection of the
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person for whose benefit the restraint is imposed or imposes undue
hardship upon the person restricted"). Accordingly, we
ORDER the judgment of the district court AFFIRMED IN
PART AND REVERSED IN PART AND REMAND this matter to the
district court for proceedings consistent with this order.
J.
'Gibbons
' J.
cc: Hon. Elizabeth Goff Gonzalez, District Judge
Hawkins, Boley & Aldabbagh
Snell & Wilmer, LLP/Las Vegas
Eighth District Court Clerk
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