Allied Environmental Service, Inc. v. Roth, K.

2019 Pa. Super. 328, 222 A.3d 422
CourtSuperior Court of Pennsylvania
DecidedOctober 29, 2019
Docket1986 MDA 2018
StatusPublished
Cited by12 cases

This text of 2019 Pa. Super. 328 (Allied Environmental Service, Inc. v. Roth, K.) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allied Environmental Service, Inc. v. Roth, K., 2019 Pa. Super. 328, 222 A.3d 422 (Pa. Ct. App. 2019).

Opinion

J-S28005-19

2019 PA Super 328

ALLIED ENVIRONMENTAL SERVICE, : IN THE SUPERIOR COURT OF INC. T/A ALLIED WELL DRILLING : PENNSYLVANIA : Appellant : : : v. : : : No. 1986 MDA 2018 KURT ROTH, WILLIAM DEINEINGER, : JOEL YINGLING, EICHELBERGERS : ENERGY CO., LLC T/A : EICHELBERGERS WELL DRILLING :

Appeal from the Order Entered November 16, 2018 In the Court of Common Pleas of Berks County Civil Division at No(s): 18-03947

BEFORE: BOWES, J., McLAUGHLIN, J., and STRASSBURGER*, J.

OPINION BY BOWES, J.: FILED OCTOBER 29, 2019

Appellant Allied Environmental Service, Inc. t/a Allied Well Drilling

(“Allied”) appeals from the November 16, 2018 order denying its request for

a preliminary injunction. After careful review, we affirm.

This case concerns the interplay between restrictive covenants

contained in employment agreements executed between Allied and Appellees

Kurt Roth and Joel Yingling and the Pennsylvania Uniform Trade Secrets Act

(“PUTSA”), 12 Pa.C.S. §§ 5301-5308.1 Both Roth and Yingling are now ____________________________________________

1 Beyond listing Appellee William Deineinger in the opening paragraph of its brief, Appellant has not submitted any argument concerning Deineinger’s employment with Allied. The trial court reached similar conclusions regarding the dearth of argument regarding Deineinger. See Trial Court Opinion, 1/24/19, at 3 (“Deineinger did not sign an employment agreement, was not a

* Retired Senior Judge assigned to the Superior Court. J-S28005-19

employed by Appellee Eichelbergers Energy Co., LLC t/a Eichelbergers Well

Drilling (“Eichelbergers”),2 which is one of Allied’s recognized corporate

competitors in the drilling business.

The factual and procedural history of this case is relatively complex and

concerns the employment timelines of both Roth and Yingling. Roth originally

worked for Eichelbergers from November 2007 until June 2015. He then

started working at Allied as its director of environmental services in June 2015.

On June 2, 2016, Roth executed an employment agreement between himself

and Allied (“Roth Agreement”),3 which included multiple clauses prohibiting

Roth from disclosing various categories of “confidential information or

knowledge” or from soliciting or accepting business from Allied’s clients. See

____________________________________________

witness at the preliminary injunction hearing, and is not mentioned in Plaintiff’s concise statement of errors complained of on appeal; Deineinger thus plays no major role in the Court’s consideration of the petition for preliminary injunction.”). We will accordingly limit our discussion to those issues addressed in Appellant’s brief. See Commonwealth v. Heggins, 809 A.2d 908, 912 n.2 (Pa.Super. 2002) (“[A]n issue identified on appeal but not developed in the appellant’s brief is abandoned and, therefore, waived.”).

2 Where appropriate, we will refer to Roth, Yingling, and Eichelbergers collectively as “Appellees.”

3 Allied claims that Roth signed the Roth Agreement in preparation for his eventual promotion as Allied’s general manager, which post he assumed in December 2016. See N.T. Hearing, 11/14/18, at 32-34. By contrast, Roth testified that he was asked to sign the Roth Agreement solely in connection with a Maryland drilling license examination for which Allied sponsored him. Id. at 141-43. Specifically, Roth testified that he first discussed becoming Allied’s general manager in December 2016, following the resignation of Allied’s former general manager, i.e., approximately six months after the execution of the Roth Agreement. Id. at 143.

-2- J-S28005-19

Roth Agreement, 6/2/16, at ¶¶ 6.1-6.3. The Roth Agreement also purported

to provide Allied with the right “to enjoin [Roth] in a court of equity from

violating such provisions, . . . .” Id. at ¶ 6.2. The parties agree that in his

role as general manager of Allied, Roth was provided with access to a

password-protected database containing “customer fee schedules”

memorializing the prices that Allied charged or bid for various jobs, as well as

the identities of Allied’s clients. Id. at 45-48, 128-32. Ultimately, Roth left

Allied in March 2018 and returned to working for the Eichelbergers.

Yingling began working for Allied in Pennsylvania in November 2010.

Id. at 186. Yingling worked for Allied as a driller and signed his employment

agreement (“Yingling Agreement”) on or about January 18, 2017, the day

before he was slated to sit for a Maryland drilling license exam for which Allied

was his sponsor. Id. at 16-18, 20, 186-88. In relevant part, the Yingling

Agreement contained a clause providing that Yingling “shall not in any way,

directly or indirectly, solicit, divert, take away or attempt to solicit, divert or

take away any staff” from Allied. See Yingling Agreement at ¶ 6.1. Following

his execution of the agreement, Yingling completed his exam successfully and

was accredited as a general journeyman driller in Maryland. Id. at 182-83.

While he was still working for Allied, Yingling suggested that his fellow

employee, Shawn Rose, submit an application to Eichelbergers.4 Id. at 179-

4 Eichelbergers provides a $500 incentive for referrals of successful job applicants by its current employees. See N.T. Hearing, 11/14/18, at 206.

-3- J-S28005-19

80. Thereafter, Yingling departed Allied in January 2018 and began working

for Eichelbergers. Id. at 174.

On March 20, 2018, Allied sent a letter to Yingling advising him that it

considered his employment at Eichelbergers to be a violation of his

employment agreement. On April 3, 2018, Allied sent a nearly identical letter

to Roth. On April 19, 2018, Allied filed a Complaint alleging various claims for

relief under Pennsylvania law in relation to both the Roth and Yingling

Agreements, including breach of contract and misappropriation of trade

secrets under PUTSA. See Complaint, 4/19/18, at ¶¶ 81-90, 107-11. In

relevant part, Allied’s Complaint requested the entry of preliminary injunctions

against Roth, Yingling, and Eichelbergers. Id. at ¶¶ 90, 111. On the same

day, Allied filed a petition and a supporting memorandum of law requesting

the entry of a preliminary injunction that would: (1) enjoin Roth and Yingling

from maintaining their employment at Eichelbergers; (2) direct the return of

“all trade secrets and confidential information taken” allegedly

misappropriated from Allied; and (3) prohibit Eichelbergers from using any

such trade secrets or confidential information. See Petition for Preliminary

Injunction, 4/19/18, at unnumbered 1.

On April 24, 2018, the trial court issued a rule to show cause upon

Appellees. On May 7, 2018, the trial court filed an order that gave Appellees

Yingling’s name was not listed on Rose’s job application and he did not receive a bonus in connection with Rose’s accepting employment at Eichelbergers. Id. at 178, 217.

-4- J-S28005-19

thirty days to respond to Allied’s petition, and also provided for a ninety-day

discovery period. Appellees timely filed an answer to Allied’s petition along

with new matter challenging the basis of Allied’s allegations and claims for

relief, which Allied answered. A hearing was held on November 14, 2018 on

Allied’s petition for a preliminary injunction, at which testimony was adduced

from Roth, Yingling, Allied CEO Adam Santry, and Eichelbergers CEO Jerry

Rice.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Adoption of: M.F.H., Appeal of: R.L.H.
Superior Court of Pennsylvania, 2025
Doe, J. v. DePaul USA Inc.
Superior Court of Pennsylvania, 2025
Sladek, C. v. Canale, A.
Superior Court of Pennsylvania, 2024
Maiella, D. v. Joseph, J.
Superior Court of Pennsylvania, 2023
Wolfington, P. v. Bartkowski, T.
Superior Court of Pennsylvania, 2023
In the Int. of: R.C., Appeal of: R.C.
Superior Court of Pennsylvania, 2022
In the Int. of: N.W.-H., Appeal of: N.H.
Superior Court of Pennsylvania, 2022
Cornell Ardmore v. Isen, L.
Superior Court of Pennsylvania, 2022
Bowman, R., III v. R.C. Bowman, Inc.
Superior Court of Pennsylvania, 2022
Rega, R. v. THI of Pennsylvania
Superior Court of Pennsylvania, 2021

Cite This Page — Counsel Stack

Bluebook (online)
2019 Pa. Super. 328, 222 A.3d 422, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allied-environmental-service-inc-v-roth-k-pasuperct-2019.