Acero Precision v. Bonelli

41 Pa. D. & C.5th 416
CourtPennsylvania Court of Common Pleas, Chester County
DecidedOctober 15, 2014
DocketNo. 2014-05245
StatusPublished

This text of 41 Pa. D. & C.5th 416 (Acero Precision v. Bonelli) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Chester County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Acero Precision v. Bonelli, 41 Pa. D. & C.5th 416 (Pa. Super. Ct. 2014).

Opinion

TUNNELL, J.,

OnApril 1,2014, James Bonelli resigned as a manufacturing engineer machinist for Acero Precision and went to work for Vistek Medical, Inc., a company which competes with Acero in some aspects of the medical device industry.

Acero brought this action to enforce a non-competition covenant. It filed a complaint for breach of contract and other claims. It also sought preliminary and permanent injunctive relief.

Preliminary injunction hearings were held in September 2014. By stipulation, the parties agreed that these would constitute the final hearing on the merits as to all claims. For the reasons discussed herein, the court finds in favor of defendants and against Acero on all claims, denies Acero’s request for permanent injunctive relief, and awards attorneys’ fees to Bonelli.

Findings of Fact

[419]*4191. Plaintiff, Acero Precision (“Acero”), and defendant, Vistek Medical, Inc. (“Vistek”), are both contract manufacturers.

2. A contract manufacturer fabricates a part on behalf of an original equipment manufacturer (“OEM”) pursuant to the OEM’s specifications. (See N.T. 9/9, 25-26 (J. Miller).)

3. Acero manufactures and machines parts for the automotive, industrial, analytical, and medical industries. (See N.T. 9/8, 28 (M. Fitzgerald).)

4. Vistek primarily manufactures and machines parts for the medical device industry. (N.T. 9/8,139 (J. Miller).)

5. The manufacturing process for medical devices must meet the standards of the International Standards Organization (“ISO”). ISO standards assure control quality. ISO requirements are not confidential or proprietary. (N.T. 9/8, 83-84 (M. Fitzgerald).)

6. Defendant, James Bonelli (“Bonelli”), has over twenty years of experience as a machinist, engineer, and manager in the manufacturing and machining industry with specialized experience as a computer numeric control (“CNC”) machinist using both Star and Citizen brand Swiss machines. (P-13.)

7. A Swiss machine is a machine that combines the capabilities of both mills and lathes. Star and Citizen are the two main brands of Swiss machines.

8. From approximately November 2010 to April 2014, Bonelli was employed by Acero.

9. Bonelli has been employed by Vistek since April 2014.

[420]*42010. Just prior to his employment at Acero, Bonelli was employed in western Pennsylvania as an operations manager at Smart Parts, an OEM sports equipment manufacturer, where he oversaw thirty-five Swiss machines and sixty employees. Bonelli was forced to relocate and find new employment when Smart Parts effectively ended operations after declaring bankruptcy. (P-13; N.T. 9/8,163-64 (J. Bonelli).)

Bonelli’s Employment At Acero

11. In November 2010, Bonelli accepted conditional employment at Acero as a Manufacturing Engineer Technician in Newtown Square. (N.T. 9/8, 42 (M. Fitzgerald); 118 (D. Watson); 165 (J. Bonelli).)

12. Bonelli was then hired in 2010 as a full-time employee after successfully completing his trial period and relocated to West Chester, Pennsylvania for his new position. (N.T. 9/8, 42 (M. Fitzgerald), 119 (D. Watson).)

13. Acero provided Bonelli with no formal training; he had to learn on-the-job. (N.T. 9/8, 93 (M. Fitzgerald).)

14. As part of the hiring process, Bonelli was required to sign a restrictive covenant agreement entitled “Employment Agreement/Relating to Confidential Information, Trade Secrets and Non-Competition” (the “2010 agreement”) and dated November 30, 2010. (N.T. 9/8, 167-68 (J. Bonelli).)

15. The 2010 agreement contained the following non-competition provision:

During the period of two (2) years following the date of termination of the employee’s term of employment with the employer, the employee without the express [421]*421prior written consent of employer will not compete in any way with the employer directly or indirectly, and will not consult with or have any interest in any business, firm, person, partnership, corporation or any other entity, whether as employee, officer, director, agent, security holder, creditor, consultant or otherwise, which engaged in the performance of or provides services to any individual or entity or which competes with employer directly or indirectly, in any aspect of the business of employer at any location within one hundred (100) miles of any location or geographical area which shall have been designated in writing by employer as the Principal Place of Assignment of the employee at any time within the last two (2) years of the employee’s term of employment with employer.

(P-2.)

16. The one hundred mile non-compete radius from Acero’s locations in Newtown Square and West Chester, PA includes such cities as Philadelphia, Harrisburg, Allentown, Scranton, Wilmington, DE, Trenton, NJ, Newark, NJ, New York, NY, and Baltimore, MD.

17. Thus, under this provision, Bonelli would be prevented from being employed in the manufacturing industry for two (2) years after separating from Acero unless he relocated beyond the geographic restriction.

18. The 2010 agreement also contains non-disclosure of confidential information and non-solicitation of Acero customers covenants. (Id.)

19. At Acero, Bonelli led a manufacturing group of eight (8) Star brand Swiss machines and oversaw approximately four (4) to eight (8) machinists contained within the group [422]*422from time to time. (N.T. 9/8, 91 (M. Fitzgerald); 119 (D. Watson).)

20. Bonelli was also responsible for operating one (1) to two (2) of those machines at a time. (N.T. 9/8, 91 (M. Fitzgerald); 120 (D. Watson).)

21. Bonelli and his group were responsible for determining how to fabricate a customer’s product pursuant to the customer’s specifications articulated on a shop drawing. (N.T. 9/8, 119,121 (D. Watson).)

22. Although Bonelli provided time estimates to develop projected manufacturing costs, Bonelli was not responsible for either sales or pricing at Acero. (N.T. 9/8, 114 (M. Fitzgerald); 131 (D. Watson); 169-70 (J. Bonelli).)

23. Bonelli was eventually given the title of “Manufacturing Engineering Manager,” however, his core job functions remained the same. (N.T. 9/8, 119 (M. Fitzgerald).)

24. Bonelli expressed interest in acting as a training manager, a position that was discussed with Acero but never created for him. (N.T. 9/8, 97 (M. Fitzgerald).)

25. In addition, Bonelli expressed interest in the open position of manufacturing manager in charge of Swiss machining, however, Acero did not promote him to that position, which still remains open. (N.T. 9/8, 97-98 (M. Fitzgerald).)

26. Throughout his time at Acero, Bonelli’s direct supervisor was long-time Acero employee Dave Watson, Director of Operations. (N.T. 9/8, 117-18 (D. Watson).)

Acero revises its Employee Handbook and requires all employees to sign anew Restrictive Covenant Agreement.

[423]*42327. During the fall of 2013, Acero contracted with an outside human resources (“HR”) company, McCloskey Partners (“McCloskey”), to outsource its HR functions and revise its Employee Handbook (the “Handbook”). (D-60 at 8 (J. Fitzgerald); P-19 at 17-20,27 (H. McCloskey).)

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Bluebook (online)
41 Pa. D. & C.5th 416, Counsel Stack Legal Research, https://law.counselstack.com/opinion/acero-precision-v-bonelli-pactcomplcheste-2014.