Airtron, Inc. v. Tobias

2021 Ohio 2213, 175 N.E.3d 51
CourtOhio Court of Appeals
DecidedJune 30, 2021
Docket29012 & 29019
StatusPublished
Cited by2 cases

This text of 2021 Ohio 2213 (Airtron, Inc. v. Tobias) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Airtron, Inc. v. Tobias, 2021 Ohio 2213, 175 N.E.3d 51 (Ohio Ct. App. 2021).

Opinion

[Cite as Airtron, Inc. v. Tobias, 2021-Ohio-2213.]

IN THE COURT OF APPEALS OF OHIO SECOND APPELLATE DISTRICT MONTGOMERY COUNTY

AIRTRON, INC. : : Plaintiff-Appellee/Cross- : Appellate Case Nos. 29012 & 29019 Appellant : : Trial Court Case No. 2020-CV-2802 v. : : (Civil Appeal from JAMES TOBIAS, et al. : Common Pleas Court) : Defendants-Appellants/Cross- : Appellees

...........

OPINION

Rendered on the 30th day of June, 2021.

STEPHEN A. WEIGAND, Atty. Reg. No. 0083573 & D. JEFFREY IRELAND, Atty. Reg. No. 0010443, 110 North Main Street, Suite 1600, Dayton, Ohio 45402 Attorneys for Plaintiff-Appellee/Cross-Appellant, Airtron, Inc.

DAVID C. GREER, Atty. Reg. No. 0009090, JAMES H. GREER, Atty. Reg. No. 0046555, & KEVIN C. QUINLAN, Atty. Reg. No. 92999, 6 North Main Street, Suite 400, Dayton, Ohio 45402 Attorneys for Defendant-Appellant/Cross-Appellee, James Tobias

THOMAS M. GREEN, Atty. Reg. No. 0016361, 800 Performance Place, 109 North Main Street, Dayton, Ohio 45402 Attorney for Defendants-Appellants/Cross-Appellees, A-1 Mechanical, LLC & Daniel Tobias

.............

EPLEY, J. -2-

{¶ 1} This appeal stems from various employment contracts between Defendant-

Appellant/Cross-Appellee James Tobias and his former employer, Plaintiff-

Appellee/Cross-Appellant Airtron, Inc., as well as Tobias’s involvement in the creation of

a business that competes with Airtron. James Tobias appeals from the trial court’s ruling

that he breached a non-disclosure, non-competition, and non-solicitation agreement.

Additionally, he appeals the granting of a permanent injunction against him related to

breaching that agreement. Finally, James Tobias appeals from a decision regarding

whether other unresolved claims are subject to a jury trial. Defendants-Appellants A-1

Mechanical and Daniel Tobias also appeal the enforcement of the non-compete

provisions. Airtron appeals the trial court’s judgment against it and in favor of James

Tobias, which concluded that it breached a contract regarding employee bonuses. For

the reasons that follow, the appeals of James Tobias, Daniel Tobias, and A-1 Mechanical

will be dismissed for lack of a final appealable order. The trial court’s judgment in favor of

Tobias and against Airtron will be reversed.

I. Facts and Procedural History

{¶ 2} The business relationship between James Tobias and Airtron, Inc. began in

1982 when the company hired Tobias to do heating and air conditioning work. That

employment relationship lasted until 2008, at which time he was terminated. Airtron did,

however, pay James Tobias his salary for a year, and in return, he honored a one-year

non-compete agreement.

{¶ 3} In 2009, James Tobias started his own company, Five-Star, which he owned

and operated until 2013, when he was re-hired by Airtron as a Commercial and Consumer

Salesperson and brought his Five-Star employees and customers with him. This new -3-

position required a non-disclosure, non-solicitation, and non-competition agreement (“the

Agreement”), which he signed on May 28, 2013.

{¶ 4} By signing the document, James Tobias acknowledged that he would have

access to confidential proprietary information of Airtron, including information related to

the company’s method of estimating and pricing, mechanical designs, supplier

information and material pricing, policy manuals, computer programs, and customer lists

and information. He agreed to never (during or after his employment) communicate the

information to anyone else or use it for his own benefit.

{¶ 5} James Tobias agreed not to compete with Airtron directly or indirectly in the

residential, multi-family, and light commercial plumbing and HVAC markets within a 100-

mile radius of his geographic territory. The Agreement also contained a non-solicitation

covenant in which James Tobias agreed not to solicit (or to assist in such solicitation) or

hire any employee, including former employees, who had been employed by Airtron within

the past year. In addition, he agreed not to solicit any clients or customers of the company

within one year of the termination of his employment. Another feature of the Agreement

was that it contained a “Waiver of Jury Trial” provision which stated: “The parties hereto

waive all right to trial by jury in any action or proceeding to enforce or defend any rights

under this agreement and any document executed in connection herewith.”

{¶ 6} The company, in turn, agreed to pay Tobias $25,000 as consideration for

signing the Agreement.

{¶ 7} On February 10, 2014, James Tobias was promoted to Vice President of

Airtron’s West Chester division. His new employment contract included a salary, a

commission, a bonus under the Vice President Incentive Plan, an enhanced bonus under -4-

the Enhanced Incentive Plan, and a vehicle allowance. A new Vice President Incentive

Plan was signed each year. Between 2014 and 2018, James Tobias received an annual

salary of approximately $104,000 plus bonuses as established by the Vice President

Incentive Plans. The bonuses were always paid out in March.

{¶ 8} The 2019 Vice President Incentive document, which is a central issue in this

appeal, was signed by James Tobias in January 2019, and the plan was scheduled to run

from January 1 through December 31, 2019. His 2019 bonus was to be $173,118 and

should have been paid out in March 2020.

{¶ 9} In February 2020, James Tobias attended a meeting about the development

of a new HVAC company to be called A-1 Mechanical. A-1 Mechanical is a direct

competitor of Airtron and operates within a 100-mile radius of Airtron’s West Chester

location where James Tobias was vice president. At trial, he affirmed that he was

considering other employment opportunities because he was concerned about the

financial status of Airtron’s “grandparent” company, Centrica.

{¶ 10} On March 25, 2020, James Tobias, along with the other Airtron vice

presidents, learned from Airtron Director Jeoffrey Morrow that the 2019 bonuses would

not be paid out in March due to financial concerns brought about by COVID-19. This

prompted the vice presidents to inquire of Morrow if their restrictive covenants would be

enforced. Morrow relayed the question via email to Jeff Fralix, an executive at Direct

Energy, Airtron’s parent company, to which Fralix responded: “Yes, will enforce non-

competes.”

{¶ 11} The evidence suggests that throughout the late winter of 2019 and early

spring of 2020, James Tobias, along with his nephew, Daniel Tobias (who was also an -5-

Airtron employee), met and communicated with A-1 Mechanical team members and

assisted with various issues related to the launch of the business, including warehouse

needs and securing bids for printers. At trial, James Tobias testified that on May 7, 2020,

he emailed Eric Salzer (a founding member of A-1 Mechanical) a photograph of Airtron’s

commission schedule and then, on or about May 13, 2020, both James and Daniel Tobias

received A-1 Mechanical email addresses.

{¶ 12} Evidence was also presented at trial that indicated that James Tobias,

before leaving his job at Airtron, began funneling potential jobs and clients from Airtron to

A-1 Mechanical. In one case, shortly after James Tobias left Airtron, a major project,

which had been bid on and awarded to Airtron, switched to A-1 Mechanical after receiving

a slightly lower estimate.

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2021 Ohio 2213, 175 N.E.3d 51, Counsel Stack Legal Research, https://law.counselstack.com/opinion/airtron-inc-v-tobias-ohioctapp-2021.