Amquip Crane Rental, LLC v. Crane & Rig Servs., LLC

199 A.3d 904
CourtSuperior Court of Pennsylvania
DecidedNovember 27, 2018
Docket871 EDA 2017
StatusPublished
Cited by15 cases

This text of 199 A.3d 904 (Amquip Crane Rental, LLC v. Crane & Rig Servs., LLC) 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
Amquip Crane Rental, LLC v. Crane & Rig Servs., LLC, 199 A.3d 904 (Pa. Ct. App. 2018).

Opinion

OPINION BY STABILE, J.:

Appellants Harvey Ray Graham, Kristian B. Bruu, Robbin O. Rainey, and *908 Thomas Newell (collectively "the Individuals"), along with Appellants Crane & Rig Services, LLC ("C & R") and A Crane Rental, LLC ("ACrane"), appeal from a preliminary injunction prohibiting the Individuals from (1) working in the crane rental industry in limited geographic areas, (2) soliciting customers of Appellees Amquip Crane Rental, LLC ("AmQuip") and Maxim Crane Works, L.P. ("Maxim"), and (3) using AmQuip's confidential information. AmQuip employed the Individuals prior to their respective separations from that employment. The Individuals joined a rival crane rental company, ACrane, until they were terminated concurrent with the entry of the preliminary injunction. In this appeal, the Individuals challenge the preliminary injunction on the grounds that (1) Newell did not breach his duty of loyalty to AmQuip; (2) the trial court made erroneous factual rulings; and (3) the court abused its discretion in enforcing noncompetition covenants that Graham, Bruu and Rainey entered into with AmQuip. We affirm. 1

Appellees AmQuip and Maxim were acquired by a third party in July 2016 and are in the process of a formal operational merger. Together, they represent one of the largest crane companies in the world. AmQuip-Maxim 2 is a global crane rental company with approximately $700 million in annual revenue. It operates forty to fifty branch locations; employs more than 2,500 individuals; serves over 6,600 customers; has a fleet of over 1,200 cranes; and boasts the largest production crane in the world, which can lift approximately 3,100 tons. AmQuip is valued at roughly $1.4 billion. AmQuip and Maxim maintain principal places of business in Trevose, Pennsylvania and Bridgeville, Pennsylvania, respectively.

In contrast, ACrane is a startup crane rental company with only 45 cranes. C & R is a crane financing company. Both companies are owned in equal shares by Christopher Anderson and William McCabe.

The Individuals, who range in age from their mid-fifties to mid-seventies, joined AmQuip between 2008 and 2013 and worked at AmQuip's Atlanta branch office. Graham was the branch manager of the Atlanta office, and Bruu, Rainey and Newell were salesmen. As a condition of employment, Graham, Bruu, and Rainey each signed noncompetition, nonsolicitation and confidentiality covenants with AmQuip. These covenants prohibited Graham, Bruu, and Rainey from competing with AmQuip and soliciting AmQuip customers or employees for two years after their employment with AmQuip. Newell did not sign any noncompetion, nonsolicitation or confidentiality covenants. All four Individuals, however, signed an AmQuip Employee Handbook that set forth a company confidentiality policy.

AmQuip's Atlanta branch was successful during the Individuals' tenure, and Newell, Bruu, and Rainey were outstanding salesmen. During the injunction hearing, there was ample evidence that AmQuip's resources and processes enabled the Individuals' to obtain new customers and increase revenue from customer relationships they *909 had prior to joining AmQuip. Newell admitted that he gained new customers while at AmQuip through use of AmQuip's resources. N.T., 1/25/17, at 45. AmQuip acquired two of its largest customers, Ansco and SAC Wireless, after Newell joined AmQuip in 2008; they did not come with him to AmQuip. Likewise, Rainey testified that "it was a good many customers that [he] began selling to for the first time after [he] began [his] employment with AmQuip[.]" N.T., 1/26/17, at 6-7.

The Individuals had access to confidential Amquip information, such as customer lists, customer order histories, vendor lists, pricing formulas, and branch financial information. Graham testified that he had access to the following information classified as confidential in AmQuip's Code of Business Conduct and Ethics: customer lists, customer usage histories, customer requirements, customer contact information, confidential pricing information, price quotations and bids made to specific customers and the customers' responses to those quotations and bids, pricing strategies, pricing and discount information unique to specific customers, information concerning the prospective crane rental needs of specific customers, business leads, confidential contractual rental terms, marketing strategies, business plans, information concerning equipment availability and allocation, information concerning employee compensation and incentives, financial information, and cost information. N.T., 1/24/17, at 66-67, Reproduced Record ("R.R.") at 191a. Graham admitted that AmQuip considered this information confidential and would not provide this information to competitors. N.T., 1/24/17, at 67. He also conceded that he "had a pricing formula for the [AmQuip] office" that he did not share with anybody outside of AmQuip while he was employed there. Id. at 68. AmQuip's corporate office developed these pricing strategies, N.T., 1/26/17, at 94 and provided Graham with a customized dashboard that allowed Graham to access a range of customer and financial information for the AmQuip Atlanta branch, all of which Graham factored into his pricing formula. N.T., 1/27/17, at 5, "R.R." at 374a; N.T., 1/24/17, at 67-68. Graham used AmQuip customer information, supplier information, marketing plans and strategies, and "[c]orporate, financial and strategic information" on a daily or weekly basis. N.T., 1/24/17, at 165. Graham also admitted to having access to AmQuip's utilization reports, financials, and all of its client contracts for the Atlanta office. N.T., 1/24/17, at 165; N.T., 1/25/17, at 18.

Likewise, Newell had access to AmQuip's customer information, including their names and contact information from billing records, rental history, and pricing history. N.T., 1/25/17, at 45-47. He also had access to AmQuip's pricing information and bids. Id. at 46. Newell admitted that he had information regarding the prospective crane rental needs of particular customers and would not divulge such information to competitors. Id. at 46-47. He also acknowledged that AmQuip's pricing information "we talked about in our AmQuip Atlanta office was confidential." Id. at 50, 52. Bruu testified that he could access a wide variety of AmQuip's confidential information on its AS400 computer systems such as customer names, customer contact information, customer requirements, billing information, and product information.

In July 2016, AmQuip and Maxim were both acquired by a third party. Subsequently, they have been merging into one operational entity. On August 11, 2016, Graham left AmQuip. The parties disagreed as to whether AmQuip terminated Graham or whether he resigned, but the trial court found that he resigned because he intended to join ACrane.

*910 In August 2016, Graham met with Anderson and McCabe to discuss forming ACrane, a new crane rental company, in Atlanta.

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Cite This Page — Counsel Stack

Bluebook (online)
199 A.3d 904, Counsel Stack Legal Research, https://law.counselstack.com/opinion/amquip-crane-rental-llc-v-crane-rig-servs-llc-pasuperct-2018.