Two escort service owners have sued four former employees for breach of contract and revealing "trade secrets" because the owners contend the employees have set up their own business, tapped client files and tried to lure away other employees.
Brett Jeppson and Roy B. Hoskins filed suit in 3rd District Court Friday alleging that four former female employees had signed written employment agreements with either Companions (owned by Hoskins) or My Fair Lady (owned by Jeppson).
These agreements prohibit any competition — either free-lance or with another competing escort service — for one year after leaving these firms and also forbid revealing "trade secrets" such as files, lists of customers and "information regarding customers," according to the lawsuit.
In addition, the employment agreements require that employees be liable for damages of $100 for each day the contract is breached .
Both men hold sexually oriented business licenses from Salt Lake City.
Last year and earlier this year, four employees had their employment terminated with either Companions or My Fair Lady. The women are Crystal Terry, Christine McKnight Fowler, Stacy Johnson and Susan Mosteller, according to court documents. Also sued is S and S Enterprises, which the suit says is operated by Johnson and Mosteller.
Mosteller, however, strongly denies the lawsuit's claims and terms the action "outrageous." She said she has hired an attorney to file a countersuit against Jeppson and Hoskins.
The lawsuit said claims that four women began competing against Jeppson's and Hoskins' businesses, contacted their clients, placed ads in the Salt Lake City Yellow Pages, and encouraged other employees to come work for them.
This has caused the men "to lose valuable clients, business and profits," the suit said.
E-mail: lindat@desnews.com